THE booming £1 billion cruise market will reach US
penetration levels by 2010, according to Passenger Shipping Association
director Bill Gibbons.
Figures released last week confirmed the industry had
attracted more than one million passengers in 2003, but Gibbons said the next
target should be to mirror US levels of cruising.
In the US, one in 40 people has cruised while in the
UK the figure stands at just one in 60. To reach US levels, the UK market would
have to top 1.5 million. PSA figures predict the market will reach 1.3 million
people by 2008 – a 34% growth.
The PSA’s Annual Cruise Review outlined the 17th
successive year of growth for the sector, with a 12% rise to 1,053,727. A 10%
growth is predicted for this year.
However, numbers booked through the trade fell from
82% to 78% between 2002-03, with the PSA blaming competition from direct-sell
agencies. Gibbons said the PSA will place more emphasis on encouraging agents
to switch-sell to cruising.
“Travel agents are losing a lot of business elsewhere
and are under threat from the low-cost airlines. They should move into cruising
in order to protect and expand their business,” he said.
The average sale dropped 5% last year to £1,052, with
total revenue hitting £1.014 billion.
Growth will face a blip next year when MyTravel’s Sun
Cruises withdraws from the market, although Gibbons said this drop will be
“quickly absorbed” by other operators entering the sector. P&O Cruises,
Thomson, Royal Caribbean and Princess Cruises are all increasing UK capacity
next year.
Ultra-luxury cruising – ships with less than 1,100
passengers and costing at least £350 a day – saw a 70% rise last year to
18,400. Gibbons said the PSA will work to differentiate luxury cruise products
from mainstream cruising.