Cruises - UK - April 2007

Table of Contents

• Issues in the Market
• Main issues
• Definitions
• Abbreviations
• Insights and Opportunities
• Going solo
• Get the kids onboard
• Testing the waters
• Market in Brief
• Cruise to the rescue
• Let' s stick together
• All-incruisives
• Down the river
• Port of Britain
• Keep it in the family
• Pssst... cruising' s fantastic, pass it on...
• Going solo
• Fast Forward Trends
• Trend 1: Living to shop
• What' s it about?
• Observations
• What next?
• Trend 2: Life and Death of Geography
• What' s it about?
• Observations
• What next?
• What is Fast Forward?
• Internal Market Environment
• Key Points
• Domestic
  • Figure 1: Domestic holidays and expenditure, 2002-06
• Overseas success
  • Figure 2: Overseas holidays and expenditure, at constant and current prices, 2002-06
• Been there, done that
  • Figure 3: Outbound holiday visits, by region visited, 2001-05
• Broader Market Environment
• Key Points
• Economy
• Low income equals low confidence
  • Figure 4: GfK NOP consumer confidence index: Last 12 months
• If you' ve got it, spend it!
  • Figure 5: Expenditure priorities, 2005-07
  • Figure 6: Trends in personal disposable income and consumer expenditure, 2002-11
• The older get younger
  • Figure 7: Trends in the age structure of the UK population, by gender, 2001-11
• Socio-economic population:
  • Figure 8: Forecast adult population trends, by socio-economic group, 2001-11
• Lifestage heading
  • Figure 9: Forecast adult population trends, by socio-economic group, 2001-11
• Competitive Context
• Key Points
• Overseas holiday market
  • Figure 10: Overseas holidays and expenditure, at current prices, 2002-06
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Who' s Innovating?
• Key Points
• New waters
• Don' t mention the ' c-word'
• Virtual reality
• We are family
• Community spirit
• Flights of fancy
• Specialist cruise hits mainstream
• Celebrity endorsement
• Market Size and Forecast
• Key Points
  • Figure 11: Market size by volume, 2002-12
  • Figure 12: Market size and forecast of the cruises market, by value, 2002-12
• Factors incorporated in the forecast
• Segment Performance
• Key Points
• Cruises save the package holiday market
  • Figure 13: Type of holiday taken for last holiday abroad, 2002-06
• Making travel a treat
  • Figure 14: Main method of travel used for last holiday abroad, 2002-06
  • Figure 15: Volume of UK ocean cruise passengers, by region visited, 2005
  • Figure 16: Duration of last holiday, 2002-06
• Market Share
• Key Points
• Europe leads the growth
  • Figure 17: Volume of ocean cruise passengers by market
• Germany to challenge UK' s position
  • Figure 18: Volume of ocean cruise passengers by country
• Ex-UK to challenge the flycruise
  • Figure 19: Volume of ex-UK cruises taken, 2004-05
• High end remains niche
  • Figure 20: Volume of ultra luxury cruises taken, 2004-05
• Companies and Products
• Carnival Corporation
• Cunard Line
• Ocean Village
• P&O Cruises
• Princess Cruises
• Swan Hellenic
• Royal Caribbean International (RCI)
• Celebrity Cruises
• Star Cruises plc
• Oceania
• Thomson Cruises
• First Choice Holidays plc Island Cruises
• easyGroup UK Ltd
• Distribution
• Key Points
• Cruisers show loyalty to agents and operators
  • Figure 21: How last holiday was booked, 2002-06
  • Figure 22: Booking method for last holiday, 2004-06
• The Consumer
• Key Points
• Experience of cruises
  • Figure 23: Use of cruises, January 2007
• Trial is key -- then the product will sell itself
• Aspirational cruisers
• Who are the cruisers?
• Wealthy achievers form cruise heartland
• Untapped potential
• Engaging the ABC1 third agers
  • Figure 24: Use of cruises by demographics, January 2007
• Attitudes Towards Cruises
• Key Points
  • Figure 25: Attitudes towards cruises, January 2007
  • Figure 26: Attitudes towards cruises by use of cruise, January 2007
• Experienced cruisers are the best ambassadors
• But a bad experience sticks
• Promotion of bite-sized experiences
• ' Not for kids' view remains strong
• Luxurious equals unaffordable
• Attitudes towards cruises -- detailed demographics
  • Figure 27: Most popular attitudes to cruises by demographics, January 2007
  • Figure 28: Further attitudes to cruises by demographics, January 2007
• What Would Make You Take a Cruise?
• Key Points
  • Figure 29: Enticements to take cruises, January 2007
• Safety in numbers
• Third wavers
• Aspirational cruisers the most cost conscious
• Risk reduction needed for cruise virgins
• Ship' s blog
• Hop on and hop off
• Single them out
• What Would Make You Take a Cruise? -- Detailed Demographics
  • Figure 30: Enticements by demographics, January 2007
  • Figure 31: Further enticements by demographics, January 2007
• Targeting Opportunities
• Key Points
• Positive
• Negative
  • Figure 32: Number of positive attitudes towards cruises, January 2007
  • Figure 33: Number of negative attitudes towards cruises, January 2007
• Captured -- 10% of respondents (or five million adults)
• Hot -- 20% of respondents (or 10 million adults)
• Warm -- 10% of respondents (or five million adults)
• Cool -- 15% of respondents (or 7.5 million adults)
• Freezing -- 46% of respondents (or 23 million adults)
• Reaching these target groups
• The Young Man and the Sea
• Shore leave
• Fly-cruise-fly holidays
• Food for port
• Coast to boast
  • Figure 34: Targeting opportunities by demographics, January 2007
• How to reach your targets
  • Figure 35: Summary of target groups by demographics, January 2007