Confidence in the cruise sector is running hot says Joel Katz and the growth in the industry has not exhausted its potential.
Speaking at the New Zealand Cruise Association Conference in Auckland today, the regional managing director of the Cruise Lines International Association (CLIA) Australasia & Asia says there are 86 ships on order at the moment, that will be added to the 350-stong global fleet. Orders add up to NZD170 billion and will add 234,000 lower berths.
Katz told the conference that scale of commitment was aimed not only at demand stretching into next decade, but existing strong demand.
“They’ve been ordered because the evidence says that demand is already there and will continue to grow. And the order book has also increased over the past year, and that is significant.’’
. . . Demand Drivers
He says cruise continues to attract repeat business with 89.7% of previous cruisers intending to take another voyage. CLIA figures also show 75.6% of non-cruisers are open to taking a first cruise.
“The growth opportunity really comes from both directions. We have a high, loyal, existing base, and a very large group of potential new customers.”
Katz says new ships are catering to a changing passenger mix. “The customer base is younger, is more diverse and more interested in different styles of travel.’
. . . Trade Spin-off
Ponant’s Alan Wilcock says that close-to home cruising by Kiwis is an important part of its business, making up around 15% of its passengers on some of its longer sub-Antarctic cruises.
At the same time, YouTravel & Cruise Orewa director Kiri Martin says close-to-home cruising is also important for the trade. “It’s not just first-time cruisers who like the idea of sailing from New Zealand or Australia — there’s also a big older demographic who don’t want to do long-haul flights, especially with all the global uncertainty at the moment,’’ she says.
Martin says it’s great to get ships back here after a downturn, as when people see cruise ships in New Zealand, it gets them thinking and talking about cruising. “It keeps cruising visible and creates interest—the ships almost do their own marketing,’’ she says.
