Industry Focus:

High Stakes on the High Seas: The Online Cruise Marketplace

Is there a cruise vacation in your future? If the cruise industry continues on its current growth trajectory, chances are there could be. After a relatively flat period from 2000 to 2003, the industry is experiencing a virtual tidal wave of growth, sailing from $14.73 billion in revenue in 2003 to $20.64 billion in 2006.i More than 12 million people went on cruise vacations in 2006, and it is expected that 2007 will finish with an additional half a million cruisers. Yet even with such impressive stats, there’s plenty of room for the industry to expand, as some 83 percent of U.S. adults have never set sail on a cruise vacation.ii

The cruise industry has fueled that growth at least in part by reaching out beyond its traditional audience of the “newly wed and nearly dead,” to use the industry’s own vernacular. Gen Xers are being lured by shorter, three-day trips heavy on parties and music, such as Whet Travel’s “Groove Cruises.”iii Cruise lines are expanding beyond the traditional honeymoon business by catering to bachelor parties and destination weddings. And a host of new amenities, from wi-fi zones to rock-climbing walls to luxurious new spas, are being brought onboard to appeal to a broader audience.

The cruise lines are also reaching into more upscale demographics with special accommodations and services for wealthier cruisers, from private sun decks and VIP pools to private dining rooms and even private elevators, so well-heeled cruisers can avoid rubbing elbows with the masses in the steerage. Norwegian and Cunard consistently sell out their upscale offerings; similar exclusive accommodations are being planned by Celebrity and Carnival.iv

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