The Giant, Shrinking Cruise Industry
May 19, 2005
More and more people are cruising every year, so it may surprise you to hear that the cruise industry is actually getting smaller. Seems a little oxymoronic, doesn't it? Kind of like "jumbo shrimp" or "deafening silence." But when you think of it in terms of the number of cruise lines that exist, it begins to make sense.
The reason the cruise industry is "shrinking" is based on the fact that there are just three cruise lines that control almost the entire midlevel-priced cruise market: Carnival, Royal Caribbean, and Norwegian. Yes, there are exceptions to the rule, such as Disney Cruise Line, various smaller sailing ships, and the only independent mid-priced cruise line around, MSC Cruises. But other than those few exceptions, the three power houses of the cruise industry dominate almost 100% of market. The cruise line that holds the number three spot on the triumvirate of cruise lines is Norwegian Cruise Lines. With twelve ships that are currently accepting reservations, and more on the way in the next few years, NCL is striving to be the cruise line with the youngest fleet of ships in the business.
In June 2005, the U.S. flagged Pride of America will make its debut with cruises to the Hawaiian Islands. Then in August of 2005, Norwegian Jewel will set sail, giving guests the chance to travel through the Atlantic on Canada & New England and Caribbean cruises. The spring of 2006 will see the release of the highly anticipated Pride of Hawaii, while in February and autumn of 2007 two sister ships of Jewel are scheduled to hit the waters.
Next on the list is Royal Caribbean. Royal Caribbean International owns 19 Royal Caribbean ships, and soon will be able to lay claim to the largest cruise ship in the world, Freedom of the Seas. With more innovative features than any other ship created to date, the release of Freedom of the Seas will be one of the biggest things to happen to the cruise industry in quite some time. This 158,000-ton cruise ship will have 3,600 berths, dozens of restaurants, bars, lounges, and public spaces, as well as features never before seen at see—many of which the company is still keeping a secret.
Royal Caribbean also owns Celebrity Cruises, one of the leaders in premium cruising. With 10 ships in the Celebrity fleet, Royal Caribbean International is poised to defend its position as one of the biggest cruise lines in the industry.
But without a doubt, Carnival Cruise Lines is the undisputed is on top of the wave's crest when it comes to the cruise industry. It's title as the "World's Most Popular Cruise Line" isn't just a market ploy. Carnival Corporation owns not only its own 22 branded ships, but also Princess Cruises, Costa Cruises, Holland America, Cunard Line, Seabourn Cruise Line, and Windstar Cruises. All told, that's 68 cruise ships and growing—by far the largest number of any cruise line.
From the family-fun cruise ships of its own branded line, to the luxury of Seabourn, to the totally unique Windstar ships, Carnival Corporation can really offer passengers a wide array of cruise experiences. It too has several other ships about to be released, such as the 3,000-berth Carnival Liberty, the 3,000-berth Costa Concordia, and the 3,100-berth Crown Princess.
But what does this all mean for the consumer? Well, as you may or may not know, each company announced a policy last year that stated they would not permit their agents or brokers to discount their published prices. That announcement, as well as other factors, resulted in higher prices for consumers. Your best bet when it comes to reserving a cabin on any cruise ship is to go through a travel agency such as Cruise Network. Cruise Network is able to offer many special incentives when you book with them, in addition to the easy-to-use website with great information and the company's excellent customer satisfaction rating.
Also, don't look for "last minute" deals. While there are a few instances when you can get a lower price by waiting, nine times out of ten, planning your cruise vacation ahead of time is the smart way to go. The truth is, until there is more competition in the cruise industry—i.e., more cruise lines—cruisers might not see a reduction in prices for a while. Still, even with the higher ticket prices, cruising is a much less expensive vacation than those taken at land resorts.
