Cruise Line Industry

1
Cruise Line Industry

• Trends and Opportunities for Canadian Exporters

Elise Legendre Marketing and Trade Officer BC
Regional Office
2
Overview

• Cruise Line Industry Facts and Figures
• Trends
• Opportunities
• Next steps
• Conclusion

3
Cruise Line Industry Facts and Figures

• Worldwide
• Improvements in performance in 2004
• Growth trend should accelerate in 2006
• Forecasted value, in billion dollars
• 2005 - 17.4
• 2006 - 18.2
• 2007 - 19
• 2008 - 19.7

4
Cruise Line Industry Facts and Figures

• The players
• 2 companies dominate Carnival and Royal
  Caribbean
• Carnival is the largest with 47 market share
• Royal Caribbean is 2nd with 23 market share
• Trend is consolidation

5
Cruise Line Industry Facts and Figures

• North America
• Gross revenues of 14.7 billion in 2003
• 80.6 of all cruise passengers embarked from a NA
  port in 2003
• US dominates the market with close to 75 of all
  2003 embarkations.
• Canada with 482,000 - just under 5
• Total est. passengers in 2005 is 11.4 million for
  a total of 78.7 million cruise days

6
Cruise Line Industry Facts and Figures

• Canada
• Total of 1.55 million arrivals in 2003
• 880 cruise ship calls in Canada in 2003
• West Coast gets the bulk Vancouver alone 60.3
  share.
• Cruise related expenditures are estimated at
  965.3 million in 2003.
• Food and beverage expenditures by cruise lines in
  Canada reached 55.5 million in 2003.

7
Trends

• Options and tailoring
• Dining, a form of entertainment
• Long-term procurement solutions
• New segments, new opportunities
• Food safety
• Security

8
Opportunities

• A growing industry
• Fine dining an integral part of the cruise
  experience
• Dining options more variety
• Food related experiences selling feature
• Clients are mostly North American

9
Opportunities - continued

• Product opportunities
• Logistics the biggest challenge
• Ports opening
• New segments, new opportunities

10
Next Steps

• If you are interested by the cruise market
• Go on a cruise
• Visit the industry trade shows
• Identify cruise line with best fit for your
  products
• Contact cruise line and identify procurement
  policies and procedures no two alike.

11
Next Steps

• Participate in our upcoming seminar
• Accessing the Cruise Line Market for Food and
  Beverage Companies February 28

12
Q A

Thank you!