Asian Cruise Market Grows As Cruise Lines Expand Offerings
by Daniel McCarthy /This is part one in a two-part series on Asian cruising
It wasn’t so long ago that the Asian cruise market was perceived by many as inconsequential compared to the Mediterranean and Caribbean markets.
But according to a recent survey from CLIA, Asia is quickly becoming a major player in the cruise industry as lines shift capacity to meet a growing demand from Asian cruisers.
Two years after Carnival Asia CEO Pier Luigi Foschi predicted Asia would account for 20% of the world cruise market by 2020, the region has increased its capacity share almost double any other region, and now owns the fourth largest cruise capacity—behind the Mediterranean, Caribbean and Europe—of the regions CLIA measured.
“The cruise vacation market in China is still small, relatively speaking. However, it is the fastest growing market in the world,” said Dwain Wall, co-president and COO of WorldCruise.cn, a China based cruise-booking and information website.
Wall, who is a former CLIA senior vice president, said that there is tremendous “untapped potential” in China, both for agents and travelers.
Industry reaction
As the number of people taking cruises in Asia has increased, so has the involvement from major cruise lines.
From 2013 to 2015, the number of ships in the region increased from 43 to 52 as more cruise lines moved ships to Asia.
Most notably, Royal Caribbean’s Quantum of the Seas relocated from Bayonne, N.J., to Shanghai in 2015, something Adam Goldstein, president and COO of Royal Caribbean Cruises, said was an effort to “accelerate the growth of this vital market."
Princess Cruises has also increased their presence in the region, including earmarking their new ship set to debut in 2017 for Asia.
“Deploying our next new ship in China underscores our strong commitment to growing the China cruise market and providing discerning travelers with amazing vacation experiences at sea,” said Jan Swartz, president of Princess Cruises.
The new Asian cruiser
According to CLIA, most of the increase in interest for Asian cruising has come from inside the region. In 2014, cruise lines hosted 1.4 million Asian guests, up from 774,000 guests in 2012.
And while more passengers from all over Asia are choosing to cruise, the most significant population has come from China. The population of Chinese cruisers is almost ten-times larger than any other Asian country.
While cruising is still a relatively new concept to the population, cruises have become attractive to Chinese customers because of an easing of visa restrictions and a burgeoning middle class with more disposable income.
The Chinese cruiser is both younger and seeking shorter cruises, according to Wall, than the North American cruiser.
“This [under 40] age group is much more likely to try cruising," said Wall. "The three- and four-day market is popular, as Chinese can experience cruising at a lower cost and without having to be away from home or work for an extended period of time."
Effect on Agents
Even though the market is driven by the Asian customer, a higher commitment from cruise lines to the region means more opportunities for sales.
Because of the region’s size and differences in culture and attractions, Asia is region made for cruising, especially for clients who are seeking destinations outside of the Caribbean and Europe.
“I would suggest that agents promote a cruise vacation in China and Asia as a way for travelers to experience multiple destinations without the hassles and expense of flying from city to city…Emphasize the affordability, the convenience and the exotic nature of the sights and cultures they will experience,” Wall said.
Next time: Selling Asian cruises