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Cruise Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global cruise products market was valued at USD 92.6 billion in 2022 and is projected to expand at a CAGR of 5.2% from 2023 to 2030. Cruise ships are gaining popularity owing to the increasing demand for leisure activities. Moreover, the emergence of new technologies, such as virtual reality, is facilitating the creation of a luxury experience for the passengers. Furthermore, the development of new cruise ships with improved amenities and services along with the growing popularity of adventure cruises are expected to drive the growth of the market.
The increasing number of cruise ships and their growing size are expected to drive the demand for cruise products. For instance, in May 2021, Royal Caribbean Cruises announced the launch of a new cruise ship, Odyssey of the Seas, with a capacity of 4,180 passengers. Moreover, the growth in the number of cruise passengers is expected to support the growth of the market. According to the Cruise Lines International Association (CLIA), the number of passengers increased by 4.2% in 2020, compared to the previous year.
The rise in the trend of premiumization in demand for cruise products is another factor propelling the market growth. According to a study conducted by the Institute of Travel and Tourism, in 2019, the premiumization trend was observed in the cruise market with the introduction of new products and services, such as private cabins, exclusive shore excursions, and personalized experiences. Moreover, the increasing focus on environmental sustainability is encouraging companies to deploy green technologies and fuel-efficient ships. For instance, in October 2021, Royal Caribbean announced plans to build the world’s first cruise ship powered by liquefied natural gas (LNG).
Furthermore, the growing popularity of cruise tours is expected to drive the demand for these products. For instance, in February 2021, Carnival Cruise Line announced the launch of a new Caribbean cruise tour, called the Carnival Journeys Tour. The tour is designed to provide guests with a unique experience with a focus on local culture, music, and cuisine. Additionally, the growth in the number of millennials and their increasing disposable income is also expected to drive the growth of the market.
Product Insights
The cruise ships segment accounted for the largest market share of 67.2% by 2022. Cruise ships are becoming increasingly popular with travelers looking for a luxurious and fun holiday experience. According to an article published by the Cruise Lines International Association, in 2020, cruise vacations saw a 10% growth over the previous year. The increasing preference of cruise ships over traditional vacations is attributed to their low-cost packages with multiple entertainment and recreational activities. Furthermore, the increasing popularity of themed cruises is one of the major factors driving the growth of the cruise ships segment.
The cruise lines segment is estimated to expand at the fastest CAGR of 5.3% over the forecast period. Cruise lines are increasingly becoming popular as they provide a unique experience with different destinations and activities, making them attractive and relevant to a wide range of travelers. Furthermore, cruise lines are increasingly offering a variety of packages with different features such as onboard entertainment, meals, and activities, which are further driving the growth of the segment. Additionally, the growing awareness about the benefits of cruise holidays is also bolstering the growth of the segment.
Distribution Channel Insights
The travel agents segment dominated the market with a share of 32.6% in 2022. The growth of the segment is mainly attributed to the increasing trend of booking cruise trips through travel agents as they provide valuable advice based on the customer’s specific needs. Travel agents help customers select the best cruise line and cruise packages, in addition to providing service and advice on destinations, ports, shore excursions, cruise ships, and special events.
The online segment is expected to witness the highest CAGR of 10.8% over the forecast period. The increasing use of the internet and online booking platforms is a key factor driving the growth of the online segment. In addition, various online travel agencies such as Expedia, Orbitz, and CheapTickets are becoming increasingly popular among customers as they provide the best deals and offers on cruise packages. Therefore, the availability of a variety of cruise packages at discounted rates is expected to drive the growth of the online segment.
Type Insights
The luxury segment accounted for the highest revenue share of 32.7% in the year 2022. The growth of the luxury segment is attributed to the increasing number of millennials opting for luxurious cruises. Several cruise lines are introducing luxury cruises to cater to this segment. For instance, in April 2022, Crystal Cruises introduced “Crystal Endeavor”, a luxury cruise vessel with modern amenities and special services. The increasing trend of luxury cruises among affluent consumers and the rising disposable income in developing regions are the major drivers of the luxury segment.
The premium segment is anticipated to expand at the highest CAGR of 8.5% over the forecast period. The increasing demand for premium services from travelers, such as private cabins, personalized services, and a wide range of entertainment options, is driving the growth of the premium segment. Cruise lines are introducing new features, such as virtual reality and interactive video games, to attract the consumers, which is driving the growth of the segment. Moreover, the increasing demand for modern amenities, such as open bars, gym, spa, and Jacuzzi, is also driving the growth of the premium segment.
Regional Insights
Europe dominated the market and accounted for the largest revenue share of over 39.2% in 2022. The presence of a large number of cruise lines in the region is a key factor behind this growth. For instance, Royal Caribbean International is headquartered in the U.K. and operates across 25 countries in Europe. In addition, the increasing demand for luxury cruises is also driving the growth of the regional market. For instance, in June 2021, Viking Cruises announced the introduction of its new luxury vessels, offering an array of amenities such as private verandas, spa, and specialty restaurants.
North America is expected to witness the second-fastest growth in the coming years. This is attributed to the rising number of travelers from the region. In addition, the presence of leading players in the region, such as Carnival Corporation & PLC and Royal Caribbean Cruises, is also contributing to the growth of the regional market. For instance, in April 2021, Royal Caribbean Cruises announced the launch of its new cruise line, offering a unique experience for travelers.
Financial Projections
In this part of the cruise products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your cruise products. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main sources of revenues for a cruise products business include ticket sales, onboard purchases of food, drinks, and other amenities, promotional packages, and sponsorships. Other sources of income may include cargo freight services, leasing part of the ship for conferences or private events, and the sale of merchandise.
Projecting Expenses
In this section, all the regular expenses related to keeping the cruise products business running will be described. The list of operating expenses includes fuel costs, payroll, wages, maintenance and repairs, insurance policies, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the cruise market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In August 2022, Royal Caribbean International launched the Anthem of the Seas, a state-of-the-art cruise ship that offers an array of experiences to its guests.
– In September 2022, Carnival Cruise Line launched the Carnival Radiance, a new cruise ship that offers a range of amenities, including a spa, a pool, and numerous dining options.
– In October 2022, Disney Cruise Line launched the Disney Magic, a new cruise ship that offers a range of experiences for families and children.
Some of the prominent players in the cruise market include:
– Royal Caribbean International
– Carnival Cruise Line
– Norwegian Cruise Line
– MSC Cruises
– Costa Cruises
– Disney Cruise Line
– Cunard Line
– Celebrity Cruises
– Princess Cruises
– Holland America Line
– Viking Cruises
Global Cruise Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global cruise products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Cabins
– Entertainment
– Dining
– Shopping
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Online
– Offline
– Cruise Lines
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Luxury
– Contemporary
– Premium
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What is the Potential of Cruise Products?
[A]: Cruise products have the potential to become a leading vacation choice for many people across the world. Cruising is becoming increasingly popular due to its convenience and affordability. Cruise products offer a wide range of activities and experiences, including shopping, sightseeing, sampling local cuisine, and much more. Cruise lines are constantly introducing new offerings to entice customers and keep them coming back for more.
[Q]: Who are the Key Players in the Cruise Products Market?
[A]: The major players in the cruise products market are Carnival Corporation, Royal Caribbean Cruises Ltd., MSC Cruises, Norwegian Cruise Line Holdings Ltd., and Costa Cruises.
[Q]: Which Region Offers the Largest Opportunity for Sales of Cruise Products?
[A]: The cruise products market in Asia Pacific is expected to grow significantly over the forecast period due to the increasing number of cruise liners operating in the region and the growing popularity of cruises among tourists from the region.
[Q]: What are the factors driving the cruise products market?
[A]: Factors such as the growing number of cruise liners, the introduction of new packages, and the availability of affordable cruises are expected to drive the cruise products market over the forecast period. Additionally, the increasing number of promotional activities undertaken by cruise liners and the rising number of cruise ships are expected to further propel the market.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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