FORT LAUDERDALE, Fla. — Growth in 2009 cruise travel is forecast to be the weakest in five years, as the recession holds down household spending along with the revenues of major cruise lines.
“We are facing unprecedented challenges,” Kevin Sheehan, president of NCL Corp. said Tuesday at Cruise Shipping Miami, the industry’s annual convention in Miami Beach.
Worldwide about 13.35 million passengers are expected to cruise in 2009, up about 2.6 percent from last year. That compares with a 3.6 percent growth rate in 2008 and a long-term growth rate of 7.4 percent, according to the Cruise Lines International Association, a trade group.
“Now is not the time for the industry to hold back,” Sheehan said during a roundtable discussion with cruise executives from other major lines. “We need to showcase the phenomenal value of our product.”
Executives said deteriorating consumer confidence, a pull-back in discretionary spending and widespread job loss has hurt their operations, forcing them to slash fares and pump up onboard spending bonuses.
Cruise lines are willing to add extras to avoid empty cabins. “You always are going to get to a point where you want to fill” the ships, said Gerald Cahill, president of Carnival Cruise Lines.
Carnival and other companies are committed to marketing to attract first-time cruisers, he said. That approach also helps to grow the base of repeat cruisers even after the economic tempest has passed.
“The biggest mistake we could make is to cut the marketing budget in this time,” Cahill said.
This year, 14 new ships will be delivered to CLIA members, Sasso said, double the number introduced in 2008.
