The latest Clia report reveals the majority of cruise passengers are happy to take a cruise in the next year
About two-thirds of regular cruise passengers are willing to take a cruise in the next year, while 58 per cent of non-cruisers are willing to try it in the coming years, according to the latest report by Clia.
The 2021 State of the Cruise Industry Outlook report outlined that there is a positive story going into 2021, with 27 Clia member cruise ships due to launch next year – taking Clia’s global fleet to 270 vessels.
Kelly Craighead, Clia president and chief executive, said: “For the cruise community, there is no denying that 2020 was not the year we anticipated. Still, the industry wasted no time adjusting course to address the challenges before us.
“Clia’s 2021 report highlights the extraordinary steps the cruise community took to develop and implement enhanced public health protocols to keep putting people first, while continuing to focus on innovation and responsible tourism practices that make cruising the best way to experience the world.”
The report also found that passengers spent $385 in port cities before boarding a cruise and $100 in each port during a cruise. The full 2021 State of the Cruise Industry Outlook report can be viewed here.
As we reported in December, the UK government has published its full Global Travel Taskforce report, which explores the return of cruise.
However, the report reveals that it has been proposed by Public Health England that it may be appropriate to resume cruises when the national alert level is at level 3 and when a move to level 2 is being considered by the Chief Medical Officer.
The report says: “It is critical that we proceed cautiously and are mindful of the public health risks as we consider when it is safe to restart cruises, and whether it is safe to move between stages.
“The protection of public health must come first, while enabling economic recovery and the growth of the sector. We need to ensure that there are clear public health measures so that we can increase demand for cruises safely.
“However, it is also vital that we provide clarity on the conditions for cruise restart to enable the sector to undertake effective financial forecasting for their businesses (and ensure financial viability); communicate with clarity to their crew, supporting travel supply chain and customers; secure future bookings for 2021 and beyond; and plan for operational restart.”
It also notes that FCDO travel advice on cruises is kept under continuous review and that the transition between each phase would be subject to agreement by the Department for Transport, the Maritime and Coastguard Agency (MCA), Public Health England, the Foreign Office and other bodies. See more here.
Only 12 of 22 planned cruise ships were delivered in 2020 as Covid-19 disrupted a year when the industry’s exponential growth was set to continue.
As a result, 2021 is set to be a record-breaking year with an expected 31 vessels due to be delivered, worth a staggering $13.6 billion in total, according to Vessels Value, which monitors shipping data.
The current cruise order book sits at 104 vessels, worth an aggregated value of $60.3 billion, accounting for 34 per cent of the overall global shipping order book.
After ordering activity between 2014 and 2018, last year was due to the following the record-breaking 2019 for delivery of vessels.
However, as the infographic on the next page shows, deployment fell as demand plummeted record lows due to restrictions brought about by Covid-19.
Ordering has slowed significantly, according to the company, with delays introduced.
Major operators chose to remove their older, less efficient vessels from their fleets meaning that, in 2020, the balance between removals and deliveries was more aligned for the first time in many years.
Guy Cooper, cargo analyst at VesselsValue, said: “Going forward, cruise companies and shipbuilders must now be cautious not to oversupply the market without the increase in demand to match. By 2028 the fleet is projected to increase in size by 28 per cent, with the ability to carry over 925,000 passengers at any given time.
“Hopefully the Covid-19 vaccine will be the catalyst that propels the cruise industry back onto its previous positive trajectory. The stock market is already starting to reflect this with share prices for the major cruise lines over double what they were back in April.”