GLOBAL CRUISE SHIPS MARKET
- Using resilient supply chain, changing business models and changing patterns to seek revenue as the challenge for the cruise after the pandemic is to seek revenue for a year then march for profit margins over the next coming years to normalise
- Due to the virus outbreaks, most affected sectors connected to ship cruises are tourism, manufacturing, utilities and retail
- The revenue and capital growth for global cruise is expected to normalise post 2023
The ship cruise is used for a sojourn or for a temporary stay which comes with certain stay packages where passengers go shore without a destination for tours.
The ships follow a certain route with various packages and amazing facilities following like islands and many attractions in the ocean. The ship cruise also helps to handle supply chain logistics holding products and materials despatching it to various shores and other parts of countries from point A to point B.
The companies which despatch steel and other materials offshores have shown severe decrement affecting the manufacturers (durable and non-durable goods) and construction projects in the multiple countries as the government is currently interested only emphasizing driving fast economies and safety of the people.
The retail sector have still settled to maintain and keep pace with the customers during the ongoing pandemic also.
FACTORS AFFECTING THE GLOBAL SHIP CRUISE
- Ship passenger capacity
- Average duration of cruise
- Average price per person per day
- Onboarding spending
- Agent commission + related fees
- Marketing campaigns
- Operation costs
- Onboard costs
- Depreciation/ Amortization
For demand centric growth, there are multiple segments to list out for the global cruise segment:
MARKET SIZE & ANALYSIS
The growth of the market kept pace since this decade as per the statistics but as compared to the previous year there was a significant decrease and a net loss of $19 Billion USD as the current revenue for cruise in-scope (multi-day cruises, ocean cruises and river cruises) beholds $7.8 Billion USD for the year 2020.
Most users from working class segment accessed the cruise services from age of 25 – 44 consolidated a wholesome 51.6% as compares to the other age groups as per the market research survey.
The penetration rate of the cruise segment has significantly decreased significantly for this year and the number of users is estimated to pace up and normalise after three years probably. The cruise users segment decreased by 20,947 from the previous year and expected to increase 8967 users from the current subscriber base of 8055.
The largest ship operators in the world as per the market share are: Carnival Corporation, Royal Caribbean Cruises and Norwegian Cruise Ltd consolidating almost 75% of the gross total of $45.6 billion where all are headquartered at Miami, Florida, USA.
These companies use offshore to avoid an exorbitant pay of $90 billions on the taxes. The cruise lines are only expected to pay around ($4 – $15) ranging when reaching at the port. As per the statistical comparison and data provided by New York Stock Exchange, in the span of two months from January 2020 to March 2020,the stock prices of Carnival Corporation and Royal Caribbean Cruises fell by -63% and -80% respectively.
In USA, an average passenger choosing a stay of 7 days costs approximately around $1,700 where cruise earns earn a profit of around $250 with expenses including depreciation, agent costs, marketing, lodging over, payroll, food, ongoing costs, fuel etc.
COVID-19 IMPACT ON GLOBAL CRUISE SHIPS MARKET
It was expected in the cruise industry, the supply chain system will pace up as the supply of the tourist or passengers would surmount the demand in the coming years.
Due to the ongoing Covid-19 pandemic outbreak, the cruise industry has been badly affected due to the two most prime factors: low media coverage, lesser involvement of government (as the government is currently working on emphasizing the focus on safety parameters of the people due to the ongoing virus outbreak) and the global cruise market comes under travel and tourism industry have faced a severe decline in global sales with lesser supply and demand as compared to the statistics of the previous years.
Since April 2020, Y-O-Y change the US sales are decreased by -83% in the cruise industry due to the coronavirus epidemic turned pandemic. After growing this business from past decade and putting a hefty $42 billion under the cruise belt, the outbreak has evaporated the net capital in no time damaging the image of this sector.
The optimum challenge is to make a resilient supply chain to increase the operations (vessels and containers), selling old ships and applying new tactics to seek revenue. The major challenge is about the workforce management (People management) of the cruise facility during this pandemic.
During the rise of the pandemic, The Star cruises in Hong Kong signed a contract to have made a temporary housing engagement of foreign workers and moved to go digital by giving customers a soothing experience by just sitting at home and enjoying the cruise on a digital mode. But the real cruise experience hits different.
The future prospect for the next year is people are starting to rebook and the supply chain (despatch of vessels and containers have already started). The growth in future is expected to be less but would gain the confidence of the customers.
|2||Scope of the report|
|7||Insights from Industry stakeholders|
|8||Cost breakdown of Product by sub-components and average profit margin|
|9||Disruptive innovation in the Industry|
|10||Technology trends in the Industry|
|11||Consumer trends in the industry|
|12||Recent Production Milestones|
|13||Component Manufacturing in US, EU and China|
|14||COVID-19 impact on overall market|
|15||COVID-19 impact on Production of components|
|16||COVID-19 impact on Point of sale|
|17||Market Segmentation, Dynamics and Forecast by Geography, 2020-2025|
|18||Market Segmentation, Dynamics and Forecast by Product Type, 2020-2025|
|19||Market Segmentation, Dynamics and Forecast by Application, 2020-2025|
|20||Market Segmentation, Dynamics and Forecast by End use, 2020-2025|
|21||Product installation rate by OEM, 2020|
|22||Incline/Decline in Average B-2-B selling price in past 5 years|
|23||Competition from substitute products|
|24||Gross margin and average profitability of suppliers|
|25||New product development in past 12 months|
|26||M&A in past 12 months|
|27||Growth strategy of leading players|
|28||Market share of vendors, 2020|
|30||Unmet needs and opportunity for new suppliers|