Brief Excerpt from Industry Overview Chapter:
Companies in this industry operate deep sea, inland, and coastal/Great Lakes cruise ships. Major companies in the deep sea cruise segment, which accounts for about 95% of industry revenue, include Carnival, Disney, Norwegian Cruise Line, and Royal Caribbean Cruises (all headquartered in the US); major operators based outside of the US include Genting Hong Kong and Viking (Finland).
Demand for cruises is driven by consumer disposable income and vacation preferences. Small operators have the competitive advantage of lower labor and equipment costs and more personalized service; large operators benefit from stronger bargaining power in vendor contracting, the ability to spread costs over a larger number of passengers, and greater financial resources for marketing, expansion, and investment. The US deep sea cruise segment is highly concentrated: the four largest companies generate more than 90% of segment revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Passenger ticket sales account for the majority of industry revenue. Many cruise lines offer all-inclusive packages in which the costs of food, beverages, and standard services are incorporated into ticket prices. Other revenue sources include casino gaming, retail shops, and premium services such as luxury spa treatments.
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