1. Cruise Travel Motivations and Passenger Perceptions of Destination
Dr. Lincoln J. Whyte April 20, 2018

2. Presentation Outline Research Overview Cruise Industry Overview
Implications and Future Outlook for The Alaska/ Pacific Northwest Region
Conclusions and Discussion

3. Research Overview
Travel Motivations and Passenger Perceptions of Destination

4. Research Goals Destination image
Co-destination
Factors influencing the decision to cruise
Determine the relative importance of onboard vs onshore attributes
Explore the push-pull relationship
Measurement scale development
segmentation

5. 3-Stage Study
Stage 1: Destination Image; Measurement Scale Development
Stage 2: Scale Refinement
Stage 3: Push-Pull Relationship; Onboard-Onshore Relationship
In-person Interviews (n= 20) – RGA & open-ended questions
Online questionnaire (n= 344)
Online questionnaire (n= 503) – Canonical Correlation Analysis & Regression Analysis

6. Onboard vs. Onshore Attributes
Indirect: Onboard > Onshore
Direct: Onboard > Onshore
Indirect – mean score of item sets
Onboard mean= 5.69
Onshore mean= 5.37
Direct – slider format question
Mean score: sig diff – ANOVA, (p < .01)

7. Factors Influencing Onboard/ Onshore Importance
Destinations
Itineraries
First-time vs repeat visits
Onshore importance
↑ Historical/ cultural significance, well-known, personal interest, e.g., Alaska, Med, Europe, Antarctic
↑ shorter, more ports of call, less days at sea, longer time at ports
↑ New destinations

8. Potential Market Segments
Onboard-Onshore Preference
Push-Pull Motivation
Canonical variates – 2 groups
Regression combinations – 4 groups
Cruise Experience/ Cruise Career Ladder (future research)
OS/OB
Onboard preference (50%)
Neutral preference (38%)
Onshore preference (13%)
Push-Pull
Cruise Experience – Destination choice, length of cruise
New cruisers
Experienced cruisers
Veteran cruisers

9. Implications and Future Outlook for The Alaska/ Pacific Northwest Region
Onboard-Onshore preference groups
Ease of access, mobility issues
Current research suggests increased importance of being able to drive to home ports
Need increase in itineraries leaving from ports other than Seattle/ Vancouver
Cruise Length
Onboard-Onshore connection
Rich and exciting history of Alaska and the WC needs to be continually promoted (onboard and onshore)
OB-OS – onshore more important to WC
Ease of access
Longer cruises -Distance between West Coast cruise ports (mainly Seattle/Vancouver) and Alaska requires longer cruises (7+ days)
Requirement to stop in foreign ports
This can be leveraged by aiming at older, as well as more experienced cruisers
OB-OS connection

10. Current & Future Outlook of the Cruise Industry
Alaska and the west coast

11. Steady Global Passenger Growth – Capacity Issues
4.84% Avg.
Annual Growth
( )
2027 – 39.6m
Capacity issues – overtourism
Alienated local residents
Degraded tourist experience
Overloaded infrastructure
Damage to nature
Threats to culture and heritage
7.75% avg. annual growth rate
Only one year of negative growth (1995)
Greater than travel industry as a whole
References
Cruise Lines International Association. (2017) Cruise industry outlook. Retrieved from
*predicted

12. Shifting Markets Traditional cruise regions
Caribbean, Mexico, Bahamas, Alaska
Departure from US/ Canadian ports
Mediterranean
Traditional source of cruise passengers
North America (mainly US)
Emerging markets (regions & source of passengers)
Europe, Asia, Australia & South Pacific, South America
Emerging markets
Help maintain industry growth rates
Gaining market share/ taking market share away from traditional markets
References
BREA, 2014
Cruise Lines International Association. (2017) Cruise industry outlook. Retrieved from

13. Growth in Emerging Cruise Regions
Markets
Percentages calculated according to ALBD (Available Lower Berth Day)
References
BREA, 2014
Cruise Lines International Association. (2010). Cruise destination analysis: Executive summary.
Cruise Lines International Association. (2017) Cruise industry outlook. Retrieved from

14. No Longer Just North Americans
2016 – 24.7m total
11.5m US, 0.8m CAN (6th largest, only 3.2%)
China 2.1m
Germany 2m
UK1.9m
Australia 1.3m
Chinese will account for 25% of all international travelers by 2030
Steve Cohen – Cruising is flat, new ships cannibalize old ships…Largest cruise ships can’t get to AK, cruising down on west
References
Cruise Lines International Association. (2011). The overview: 2011 CLIA market overview.
Cruise Lines International Association. (2017) Cruise industry outlook. Retrieved from

15. Changing Passenger Demographics
Nationalities and ethnicities
Younger cruisers, children, multi-gen
Income
2015: avg. AHHI $114k
2018: avg. AHHI <$80k
Cultural customs & expectations, marketing, communications, dining & menu options, entertainment, technology, destinations, shore excursions
Changing nationalities and ethnicities
North Americans now make up less than half of all cruisers
Cultural customs/ expectations, marketing, communications
Increase in younger cruisers
Gen X, Gen Y (Millennials), Gen Z (iGen)
Traveling with children or multi-generational families
Impact on dining/ menu options, entertainment, technology, destinations, shore excursions
References
Cruise Lines International Association. (2014) CLIA annual state of the industry press conference & media marketplace. Retrieved from
Cruise Lines International Association. (2017) Cruise industry outlook. Retrieved from

16. Relevant Recent Industry Trends
Travelers warm to chilly destinations
Smart Travel Technology
Sustainability at Sea
Drivable port locations in favor
Demand for expedition cruises
Culturally Customized
Millennials/ younger generations
The coming year is projected to see an increase in popularity of colder climate destinations
Cruisers like the convenience and cost of driving to a cruise port.
Adventure travel is growing at a record pace and cruise expeditions are seeing the impact
Cruise ships designed to appeal to passengers cultures and pay homage to ports of calls P. 148 of Thesis
References
Cruise Lines International Association. (2015) Cruise industry outlook. Retrieved from
Cruise Lines International Association. (2016) Cruise industry outlook. Retrieved from
Cruise Lines International Association. (2017) Cruise industry outlook. Retrieved from

17. Bursting the Tourist Bubble
Cruise vacations have been described as ‘social cocoons’ (Vogel, 2009) or as operating inside of a ‘tourist bubble’ (Weaver, 2005)
The co-destination of the ship with the ports of call needs to be further developed.
Currently the onboard experience is being transferred to the shore via private islands/ beaches, similar shops at many cruise ports worldwide
More can be done in the way of integrating the unique onshore aspects of the local ports of call with the onboard experience—an experience that could otherwise take place anywhere on the ocean
Limitations
Limited time spent ashore, relatively short distances travelled from the ship (also a factor of time constraints), the inundation of cruise passengers into smaller ports, and the commercialized nature of mass cruise tourism providing an inauthentic experience
Possibilities (some already occurring)
Technology (e.g., virtual and augmented reality), smaller ships, scheduling at smaller ports, overnight stops, hop-on-hop-off, onboard information (e.g., seminars, presentations, workshops, performances)

18. Thank You! Questions? Comments?
Dr. Lincoln J. Whyte