Many companies operating in the leisure travel industry, including cruise lines, struggled during the recession as Americans cut back on leisure spending due to high unemployment, declining median household incomes, and a lack of confidence in their future economic prospects. During this time, cruise lines deeply discounted their base fares and offered a variety of enticing promotions which kept the average capacity utilization above 100%. In 2011, improved macroeconomic conditions—as well as the arrival of new ships, which further increased capacity—served to drive sales. While increased revenues in 2010 and 2011 indicate that the industry is poised for future growth, it is also apparent that competition for cruise travelers will increase and cruise lines will need to focus their development and marketing efforts on consumer preferences to differentiate their brands.

Many companies operating in the leisure travel industry, including cruise lines, struggled during the recession as Americans cut back on leisure spending due to high unemployment, declining median household incomes, and a lack of confidence in their future economic prospects. During this time, cruise lines deeply discounted their base fares and offered a variety of enticing promotions which kept the average capacity utilization above 100%. In 2011, improved macroeconomic conditions—as well as the arrival of new ships, which further increased capacity—served to drive sales. While increased revenues in 2010 and 2011 indicate that the industry is poised for future growth, it is also apparent that competition for cruise travelers will increase and cruise lines will need to focus their development and marketing efforts on consumer preferences to differentiate their brands.

The report addresses the following questions:

How has the North American cruise market fared during the recession, and what is the forecast for 2012-16?

What impact do macroeconomic conditions have on per passenger spending and annual revenues?

What are the leading companies, and what major changes have occurred in recent years?

What innovations have leading companies introduced to drive sales?

How are leading companies marketing their brands, and how do consumers perceive them?

How has the incidence of cruise travel fluctuated in recent years, and approximately what proportion of consumers plan to take a cruise ship vacation in 2012?

What types of activities do consumers most enjoy when vacationing?

What are the primary drivers for choosing a cruise ship vacation, and what factors discourage some consumers from going on a cruise?