Analyst predicts demandto outstrip cruising supply

Analyst predicts demandto outstrip cruising supply

Report by KIRSTEN BOWLING

the current trend for cruising continues, then by 2015 there will be less supply than demand available.

He added: “I would say we are being cautiously optimistic about the growth in the industry and I believe it is strong enough to continue.”

Wild also predicted that a mixture of mega cruise ships, with an approximate capacity of 3,500, and smaller ships such as Costa Cruises’ Costa Atlantica, which is small enough to pass through the Panama Canal, will be favoured over cruising product offered my major tour operators.

Cruise Collection sales manager Clive Howard said:”Looking at the market development I can see there will be a future need for more ships but I would prefer to concentrate on the next couple of years.”

CRUISING will become so popular in the next few years, there will not be enough ships to satisfy demand, according to a new study.

The findings come from industry analyst Peter Wild, who claims that in the next four or five years, there will be an over-supply of ships, but the industry could see demand far outstripping supply by the end of the decade.

“If capacity grows by between 8%-12% a year, then from 2006, the cruise industry will require even more berths than at first envisaged,” he said.

He went on to say that by 2009, there will be 300,000 cruise berths available, which is adequate to fill demand, but if the current trend for cruising continues, then by 2015 there will be less supply than demand available.

He added: “I would say we are being cautiously optimistic about the growth in the industry and I believe it is strong enough to continue.”

Wild also predicted that a mixture of mega cruise ships, with an approximate capacity of 3,500, and smaller ships such as Costa Cruises’ Costa Atlantica, which is small enough to pass through the Panama Canal, will be favoured over cruising product offered my major tour operators.

Cruise Collection sales manager Clive Howard said:”Looking at the market development I can see there will be a future need for more ships but I would prefer to concentrate on the next couple of years.”

New study

Vote of confidence: Wild believes ships such as Voyager of the Seas will enjoy an increase in bookings in the next few years