Page 13 - CIN Annual 2020
P. 13
[ North America ]
NORTH AMERICA: MARKET STRENGTH (III)
also through port and terminal expansion with new fa-
cilities being built in Galveston, Los Angeles, Miami and
Seattle, among other ports, with plans also underway
for new facilities in Alaska.
The new facilities enable faster and more comfortable
processing of passengers and luggage embarking and
disembarking their ships.
Triple call in San Juan, Puerto Rico 16.3 Million
After two years of significant capacity growth, the This year will see the primarily North American cruise
North American market remains strong, which, com- fleet grow to 235 ships with 345,088 berths and an an-
bined with less capacity being introduced in the coming nual passenger capacity of about 16.3 million (double
year, bodes well for 2020 and 2021. With the publicly- occupancy), a capacity increase of nearly 700,000 from
traded companies posting strong earnings in 2018 and last year.
2019, there is every reason to be confident going for-
ward. The industry has been able to demonstrate a continu-
ous capacity growth trend since 1992, with only three
Market Demand years that saw a slight reduction.
Market demand and earnings will be driven by new Over that 30-year time period, North American capa-
ships, refurbishments of older ships, and new destina- city has grown from 4.7 million to 16.3 million passen-
tions such as Royal Caribbean’s Perfect Day at CocoCay. gers and is projected to reach 21.6 million by 2027.
MSC Cruises has also introduced its own private is-
land in the Bahamas, while Norwegian and Carnival Going forward, the growth comes across the board.
Corporation are revitalizing and expanding their out While most of the growth will be in the contemporary
islands. market segment, other market segments will also grow
based on new ship orders, including premium, luxury
Standing out among the positive forces this year is the and expedition cruises.
introduction of the Scarlet Lady, the first new ship for
Virgin Voyages, while Carnival Cruise Line is introducing Core Market
the first LNG-fueled cruise ship into the North American
market. Since the mid-1960s, North America has remained the
core source market for passengers, despite the indus-
In addition, Ritz-Carlton is lending its strong brand to try’s global expansion.
the industry when the first Ritz-Carlton luxury ship en-
ters service. Furthermore, Europe-based MSC Cruises North America is not only the largest market, it has also
continues its build-up into the market. been the most stable market over the years, benefitting
from consumer spending, proximity to the Caribbean
These are excitement factors that will focus more mar- and additional deployments in Alaska, Bermuda and the
ket attention and generate more interest in cruises. The Mexican Riviera.
introduction of new expedition ships will also raise the
industry’s profile and image among more affluent and As cruise lines like to say, they “operate moveable as-
sophisticated consumers. sets,” meaning they can move ships pending market
conditions, thus managing temporary concentration in
Port Development any one market or region.
Regionally and locally, more attention is also being On Target
focused not only through ship deployment locally, but
The cruise lines are succeeding because they are de-
livering a product that the market wants, usually exceed-
ing expectations with hardware, service, food and bev-
erage and entertainment.
And, so far, the product experience comes at a good
value, usually costing less than a comparable experi-
ence would on land.
Add in new ships, more wow experiences, celebrity
chef dining and more, and it is a combination that is hard
to beat. – Oivind Mathisen
Cruise Industry News | 2020 Annual Report 37
