Concessionaires react to cruise passenger growth

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The Cruise Line International Association confirms that 2003 saw continued growth in the market, but retailers are divided over changes in passenger profile

Cruise concessionaires are reporting mixed effects from the market's growth in recent years. Traffic maintained its steady rise last year, with Cruise Line International Association members carrying 9.52m passengers, up 10.6% on 2002. And the association, whose members account for 97.5% of north American cruise capacity, are expecting that 12 new ships will boost passenger numbers to 10.6m this year.

In the current issue of DFNI eXTRA sister publication Travel Retailer International, Starboard Cruise Services and Harding Brothers both noted that a shift in passenger profile as the cost of cruising has been lowered, resulting in a slight softening of the luxury segment. ?Owing to increased occupancy, an inevitable discounting of berths occurs,? said Harding Brothers director Harold Gittelmon, ?which can then lower the spend potential of onboard guests.?

But Starboard president and ceo Rob Norris said the company had not been drastically affected by the change. ?Although cruiselines are offering their product to an ever-increasing customer base, passengers with an annual income of $45,000 can hardly be described as ?less affluent?. The cruise market has reported a high percentage of occupancy, both in mass-market and up-market passengers.?

Retailers at cruise destinations are also reaping benefits, said SMT Puerto Rico vice-president of marketing Eddie Ferenczi. In DFNI March 15, out next week, the company reports strong growth in its business at San Juan maritime port in the Caribbean. ?The start of 2004 has also been great with passengers looking for a good time and with cash to spend in the shops,? said Ferenczi.