Page 6 - Luxury Market Report-2022
P. 6
Luxury Market
The Scenic Eclipse in Antarctica
Well Positioned
he luxury cruise market should be well posi- The business model for luxury brands is rela-
Ttioned coming out of the pandemic based on tively simple: the yield comes on the ticket price
pent-up demand from affluent consumers, a modern for a mostly all-inclusive product. Extras generally
fleet, global deployment, a variety of brands and a include casino losses, spa, shopping onboard and
differentiated product mix. ultra-premium shore excursions. There is little op-
portunity to make up lost revenue onboard when
Business Model compared to the big ships from contemporary brands.
Luxury ships are smaller, all under 1,000 guests,
and generally offer longer cruises mixing marquee Players
ports with off-the-beaten path destinations. The ma- Viking is on an expansion course, going from
jority of the guests are Americans, although global rivers to oceans, and launching its first 930-guest
sourcing means there are dedicated products for ocean-going ship in 2015. That fleet will count 16
French- and German-speaking passengers. In addi- ships by 2027, plus new expedition ships debuting
tion, Australia is a growing source market and there is this year as well as the company’s entry onto the
untapped potential in China that has yet to be realized. Mississippi River.
10 Cruise Industry News: 2022 Luxury Market Report
