Thread: Europe is heating up

From CIN: Europe is on a growth course. Of 51 new ships on the orderbook, 21 are for European brands. In addition, ships ordered for American-based cruise lines may be also dedicated to European markets, year-round or seasonally, as is the case with the Independence of the Seas.
The European growth is driven by the markets in the UK, Italy, Germany and Spain primarily, but also by France and other countries.

Leading Brands

The largest brands in the European markets are Costa Crociere with a 20 percent market share, followed by MSC Cruises, with 16 percent; AIDA, with 7 percent; Louis, 7 percent; P&O, 7 percent; and Pullmantur, 6 percent.

By 2012, the picture will change slightly, with Costa boosting its market share to 25 percent; MSC maintaining its 16 percent share; AIDA nearly doubling to 13 percent; P&O Cruises at 7.5 percent; Pullmantur 6.5 percent; and Louis at 6 percent.

Although Louis recently announced the purchase of two ships from the Star Group (NCL), the Norwegian Dream and the Norwegian Majesty, other Louis ships will be retired, so the line's passenger capacity and market share will not change much.

A new player in the market will be TUI Cruises, a joint venture between Royal Caribbean and TUI, which will start service with one ship in 2009, transferred from Royal Caribbean, while plans call for newbuildings to be introduced starting in 2011.

Main Markets

The main European markets are the UK, dominated by P&O Cruises; Italy, dominated by Costa and MSC; Germany, dominated by AIDA; Spain dominated by Costa, Iberocruceros and Pullmantur; and France, dominated by Costa.

Being the largest market, the UK also supports the largest variety of brands, most of which are delivering a British product.

The German and Spanish brands are also tailored to their national markets, while Costa and MSC, based in Italy, offer a combination of pan-European, Italian and national products designed for other markets, including France, Germany and Spain.

In addition, Royal Caribbean, Princess Cruises and more recently NCL, also have ships sailing in Europe and the Caribbean, dedicated to European markets.

Moreover, Royal Caribbean and NCL will have ships in the Mediterranean during the winter, starting this year.

Potential

Europe still has huge potential for the cruise industry, if the American model is valid. So far the market penetration is far behind the U.S. And there are more people living in Europe; they have a tradition of taking more vacations; and they have disposable income.

Cruise ports can be reached on the Atlantic, Mediterranean and Baltic coastlines, without necessarily adding flight costs.

Lars, do the Europeans tend to cruise more than those of us in the States?

Of course, the flight costs have sky rocketed for those of us who have to fly to Europe to cruise, so the cost factor is greatly increased. But many US cruisers have exhausted the Caribbean ports and are looking for something new, so I can see how avid cruisers will bite the bullet and pay the big bucks to enjoy new cruise ports with all their history and antiquities.

No, Euopeans does not cruise as much as Americans, yet. In 2007 over 4 million Europeans took a cruise, while 12.5 million Americans did the same. But if you take away the "party" cruises of 1-2-3-4 nights "only" 8..6 million Americans took "serious" cruises and 3.75 million Europeans.
The European markets grew with 595 000 in 2007 compared to the American market that grew with "only" 500 000.

The avid cruisers will probably bite the bullet and fly over but that "pool" is getting smaller and smaller. How many avid cruisers are going to cruise in the Med again and again just because the deals are so very good?? Once or maybe twice!!???

Europeans have opened their eyes for cruising big time. A friend of mine works for the travel agancy in Norway that sells the most cruises. The cruise line she sells the most is Princess cruises!!! Not the big ships but the 700 pax. (Pasific Princess ??!!) I was surprised by that as those ships does not come in cheap!! Ofcourse also because of the good exchange rate to the US$$ many are taking the opportunity and book their cruises with American agents.

We havnt seen the biggest and best deals so far in 2007. I suppose by next year we will see the cruise lines fighting more to get the passengers as they are deploying more ships then ever before in Europe.
Ofcourse already now you can pick up some incredible deals for 12-14 nights cruises starting as low as Euro 400,-. For Europeans that is nothing!!!! (I can get a 2 weeks Canada-New England cruise on the Constellation from as little as €452!!! 2 weeks on the Brilliance OTS in South America for just about the same price)

RCCL and Costa are doing some real heavy advertising. In news papers, tv, radio, magazines...they are all over!!
RCCL must be wanting to pick up the most of the European market as they have planned many 4-5 days cruises out of Barcelona (Navigator OTS). Vision OTS are doing short cruises next year from Oslo to either Amsterdam or Hamburg. For the enitre summer Vision OTS will be doing 4 days cruises to St. Petersburg from Stocholm and 5 days Norwegian Fjords cruises from Copenhagen. I dont think these cruises are specially aimed at the American market. It would be to long to fly for such a short cruise. For Europeans and North Europeans in paticular these cruises are easy to get to and they are inexspensive.
Also RCCL are doing cruises from Malaga to the Canary Islands and also Western Med. Malaga is not nessesary an easy port to get to. There are more flights to Barcelona and Valencia then Malaga. So I belive those cruises are mainly aimed at the Spanish and Italian markets.
I belive in a few years there will be as many Europeans taking a cruise as Americans.
It will be very interesting to follow the development.

You've done your homework!

I see your new name has been implemented.

Originally Posted by Char

You've done your homework!

I see your new name has been implemented.

I have. I have been crazy about cruise ships since..as far as I can remember. So its all fun!!

Yes, the name just got changed now all posts etc intact