The State of the Industry Panel

Some 2,000+ people packed into a ballroom at the annual Cruise Shipping Miami convention in Florida.  Here are some highlights as they develop:

Christine Duffy kicked off the panel. She is CLIA’s President.

• 21.3 million people cruised in 2013
• 13 New ships and the Pax bill of rights highlighted 2013
• CLIA has over 50,000 travel agents
• 24 new ships planned for 2014 and 2015. Equaling 38,000+ (Berths)beds
• In Australia and New Zealand there was a 130% growth year over year
• Shared experiences are a big emphasis and it all starts with connectivity at sea (meaning SATcoms)
• Singles and young passengers (under 30 I’d presume) are also a strong focus
• Showed off the Ship Mate app on stage
• The cruise industry contributed $100 billion in economic impact globally in 2013
• $7 billion was in Florida alone
• Cruise industry represents 3.5% of U.S. and 2.5% of U.K.’s annual travel

Christine Duffy exits the stage and the 4 executives take the stage

• BBC’s Katty Kay moderating the discussion
• Demand for cruising has not matched the growth in capacity – Arnold Donald, CCL
• In bad times, cruising has shown how resilient the industry is – Richard Fain, RCCL

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• Cruising is a “ridiculously” strong value – Kevin Sheehan, NCL (onstage with out a tie. He is the CEO of Freestyle cruising after all)
• Interesting note: Europe is sinking single digits, yet the cruise industry is growing at double digits
• The cruise industry should do well in a recession – Arnold Donald, CCL (…explain 2009-2010)
• Cruise Critic is stating that panel moderator Katty Kay has never cruised before
• People take cruises on the recommendations of friends and family- Richard Fain, RCCL
• And the reason people don’t take cruises is “simple ignorance.”- Richard Fain, RCCL
• Every time Kevin Sheehan’s episode of Undercover Boss airs, NCL can witness an noticeable bump in bookings shortly thereafter – Kevin Sheehan, NCL

 

•  Kevin Sheehan emphasizes the importance of marketing; citing Undercover Boss
• Richard Fain says word of mouth is also important
• MSC has grown 800% since 2004-Pierfrancesco Vago, MSC  (yikes! that’s impressive)
• Australians love to cruise – Arnold Donald, CCL
• The vast majority of people don’t understand cruising – Arnold Donald, CCL
• The success of the industry is “brand differentiation” – Richard Fain, RCCL
• Innovation is key  – Kevin Sheehan, NCL
• Its important to impress that first time cruiser – Arnold Donald, CCL
• Also important to match them to the proper line – Arnold Donald, CCL
• Now onto talking about pax safety
• .007% of global cruisers get norovirus
• Incidents are rare because the industry is so safe  – Arnold Donald, CCL
• When one incident happens, it affects the entire industry
• Now all 4 are bantering back and forth as to who’s line is better
• Kevin Sheehan is back to the enormous value that cruising is
• We’re getting better at educating the media during incidents  – Richard Fain, RCCL [this speaks volumes. Look at the difference between the Triumph and Grandeur fires. Though I’m sure Mobile vs Freeport had something to do with it as well.]
• Bad incidents are very, VERY rare  – Arnold Donald, CCL
• The “biggest lie” is that the industry isn’t regulated – Richard Fain, RCCL
• A period of operational excellence and no media incidents are needed to make the industry stronger – Kevin Sheehan, NCL
• Its never good to be on the defensive all the time – Kevin Sheehan, NCL
• The cruise industry generates around 325,000 jobs  – Richard Fain, RCCL
• First time cruisers, word of mouth and technology are key to growth in the industry -Pierfrancesco Vago, MSC

And that’s a wrap from here. Thanks for following.