Growth of the Cruise Line Industry

The market talks to each other, influences each other. So progress gets amplified.

The more people who have cruised, the more who will tell others, 

the more who will want to cruise too.

Worldwide, the cruise industry has an annual passenger compound annual growth rate of 7.38% from 1990 – 2015. Growth strategies to date have been driven by shorter cruises, more local ports, more destinations and new on-board/on-shore activities that match demands of consumers.  The industry is also expanding rapidly internationally and has yet to maximize all its online potential.  “Mega-ship” building is increasing “buzz” about cruising as well as the number of available passenger berths, while further lowering the cost-of-sailing per passenger with economies of scale.   These activities help increase penetration in a core North American market that still has growth potential. Only 52.9% of the target North American market (or 23.1% of the whole U.S. population) has ever taken an ocean cruise.  All the cruise ships in the entire world filled at capacity all year long still only amount to less than ½ of the total number of visitors to Las Vegas
Capitalizing on the capacity growth will be based on sound marketing strategies and brand diversification using a segmentation model of the marketplace,identifying the right pods and then communicating the right value proposition to them.  These and other strategies for industry growth will continue to propel the industry into the future.
Shipbuilding Summary
A total of 7 new ships were added in 2012 with a total passenger capacity of 18,499.  From 2013 to 2014, a net of 8 more new cruise ships will come online adding 24,508 lower births, or 5.8% to passenger capacity.  The ships from 2013 to 2014 will add $2.3 billion in annual revenue to the cruise industry.
2013-2014 New Ships
Cruise Line Ship Name Delivery Lower Berths
Princess Royal Princess Spring 2013                  3,600
NCL Norwegian Breakaway Spring 2013                  4,000
AIDA Unnamed  Spring 2013                  2,192
Hapag-Lloyd  Europa 2 Spring 2013                    516
Princess Unnamed  Spring 2014                  3,600
NCL Norwegian Getaway Spring 2014                  4,000
Tui Cruises Unnamed  Spring 2014                  2,500
Royal Caribbean Unnamed  Fall 2014                  4,100
Total              24,508
Swiss Alpine Center

the Swiss Business School for Hotel & Tourism Management is celebrating 32 years. Established in Athens in 1987, it is the pioneer of hospitality management education, a la Suisse! Alpine has attracted students from over 70 countries in the last three decades, making it a truly international institute of learning.

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