The cruise industry is the most exciting vacation category in the United States and Canada. Its average rate of growth has been far greater than any other category in the Travel Industry. Currently travel is a $60-Billion industry, still with tremendous upside.
For greater understanding of the actual size of the market, according to CLIA (Cruise Line International Association), a Cruise Industry Study indicates that 97 percent of the cruise market meets the following criteria, which were used to screen respondents for the current study:
- 25 years or older
- Live in households with earnings of $40,000 or more per year
Population and study results indicate the following:
- The segment represents 44 percent of the total US population (289,092,000 in 2006), yielding 127,200,000 prime cruise candidates
Of the target population, 49,608,000 (39% of 127,200,000) have taken a cruise, and more than half of those (55% - 25,840,000) have done so in the past three years.
In fact, the cruise lines themselves see the potential growth in the industry, they plan to add 34 new ships through 2011, representing 82,729 lower berths combined.
Travel Agents play a major role in filling these vessels to capacity. A CLIA study shows that Cruisers are more frequently influenced by travel agents (12% vs. 5%) than any other travel segment. Three out of four (75%) actually book their cruises through a Travel Agent; which stresses that cruisers and potential cruisers alike need education and guidance to learn the subtle differences between the lines themselves, vessels, and destinations visited. A well educated, service-minded Travel Agent can see up to a 60% repeat and referral rate, based on their skills.
In comparison to other types of vacations, cruising holds the highest percentage of participants who express extreme satisfaction (45%). All-inclusive resorts have the second highest satisfaction levels (42%), followed by visiting friends/relatives (40%). This is higher than the rate of extreme satisfaction of land-based packages (29%). Some cruise lines themselves experience far greater than the (45%) and strive for a near 100%. This means that you can sell cruises with greater confidence knowing that your customers will have a greater chance of being satisfied than any other vacation.
Sources used for this industry overview include CLIA and Business Research & Economic Advisors.