Clear Sailing Ahead According to Cruise Lines International Association (CLIA), the global cruise industry beat the association’s original 2015 projection of 23.0 million passengers, with a final total of 23.2 million passengers, or a 4% increase over 2014. With such a performance, CLIA has also increased its 2016 forecast from 24.0 million to 24.2 million passengers, which would result in a 4.3% increase over 2015. The MMGY Global 2016 Portrait of American Travelers reported that 12% of active US leisure travels was onboard for at least one cruise vacation during 2015, compared to 18%, theme park vacation, and 11%, all-inclusive resort.

Steamin’ Into Every Corner of the World CLIA reported during March 2016 that 6.6 million Europeans took cruises during 2015, the largest number ever, and that number has increased 49% since 2008. The Mediterranean was the favorite destination for 50% of these travelers. The Asian cruise market had the largest increase during 2015, however, at 24%. In addition, there will be 43% more Asian cruise calls during 2016, or a total of 5,570, with Japan, China and South Korea having the largest port calls, respectively. Ocean cruise passengers in the Australia, New Zealand and Pacific region increased 14% from 2014 to 2015, with 1.1 million travelers coming onboard in Australia.

Travel Agents Like Cruises According to the CLIA’s Q3 2016 Travel Agent Cruise Industry Outlook, a fraction more than 72% of travel agents anticipate an increase in 2016 cruise bookings and revenues compared to 2015, and 27% forecast their revenues will increase 10% or more.   The travel agent report also revealed that 41% of agents are booking cruises 12 to 18 months in advance; 40%, 9 to 12 months in advance; 36%, 6 to 9 months in advance; and 25%, 3 to 6 months in advance and less than 3 months in advance. Not surprisingly, travel agents still rank couples cruises as #1 among all their bookings, but family bookings are a close second; followed by multi-generational family, affinity groups, honeymoon, solo cruisers, promotional groups and meeting and events.

Finding the Right Experience Because many US travelers have security concerns, Alaska is likely to see the most interest among cruise travelers during 2016, according to 62% of travel agents; followed by Caribbean/Bermuda/Mexico, 48%; and Canada and New England, 35%. Travel & Cruise Magazine reported in its Q2 2016 issue that more Millennials, at 18%, than Baby Boomers took a cruise during the past 12 months and 66% of Millennials are interested in booking a cruise during the next 2 years. For 2016, 66% of cruise travelers think all-inclusive options were very important factors when choosing a luxury cruise. Customized service and experiences were second at 50%; however, size of ships and staff-to-guest ratio were the least important.

The Riverine Scene According to the CLIA’s Q3 2016 Travel Agent Cruise Industry Outlook, 64% of travel agents anticipate selling more river cruise packages during 2016, with 21% expecting sales to be significant, especially among luxury clients and Baby Boomers. In its June 2016 River Cruising Omnibus Study, AAA reported that just 14% of surveyed US adults had taken a domestic or international river cruise vacation, and of those who had, 61% were domestic and 54% international. Although 40% of surveyed US adults said they would consider a US river cruise and 37% an international river cruise, just 24% said they were very likely or likely to do so during the next 5 years. Among those who had taken a river cruise, the likelihood was 48%.

Follow the Sun According to the MMGY Global 2016 Portrait of American Travelers, 56% of active US leisure travelers expressed interest in taking a cruise vacation during the next 2 years, which is greater than the past 3 years: 2013, 46%; 2014: 40%; and 2015, 48%. Another market for potential growth are grandparents and multi-generational family vacations, in particular, as 56% of grandparents who travel are interested in a cruise vacation during the next 2 years. The MMGY report also revealed that potential cruise travelers’ expanding use of multiple media requires cruise lines and travel agents to utilize both television and the digital channel, including social media and mobile.

Advertising Strategies Create and run TV spots that present the story of specific cruise passengers, either fictitious or actual, revealing their emotional attachment and response to the experience; and then direct viewers to social media to view a video continuation of their story. River cruise lines should market to various professional, business, community, arts and other groups to hold meetings and/or events during an evening cruise, with a discount for all attendees for a future cruise and a drawing for a free cruise. To generate interest among the youngest generation for cruising, river cruise lines could provide a “summer camp”-type experience for teens for an equivalent fee, with activities of a nautical theme: building model boats, navigation, steering by the stars, etc.

New Media Strategies Because cruising is such an experiential adventure, cruise lines and travel agents should encourage passengers to share their experience, primarily in photos and videos. Ask others to vote for the best photo and provide the winning passengers with a prize. Use LinkIn’s blogging tool to write and upload articles that explain in detail the benefits of corporate meeting cruises, including videos of past meetings and a video presentation of the various services and amenities available to this market. Use the mobile channel to share “Life Is A Journey” stories, which should resonate with Millennials. Most of the stories (video) are about how they started their current journey, but others are their cruising experience and how it is part of their life’s journey.