The Development of the Cruise Sector

1. The Development of the Cruise Sector BTEC National Travel and Tourism

2. Phases in Cruise Sector Development Cruise tourism has developed in phases. So let’s start with a look at the development of the cruise sector of the travel and tourism industry:

3. Phase 1: Beginnings In the 1920s, cruise tourism was the preserve of the social and economic elite. But after WW2, the development of air travel dented the growth of cruising, as it became more fashionable to use passenger aircraft.

4. Phase 2: Consolidation In the second half of the 20th century cruise holidays became most popular to the affluent and late middle-aged demographic groups. Taking a cruise holiday conjured up images of past luxury and opulent lifestyles. It was also a way to chase the sun in the winter months, while avoiding mass tourism.

5. Phase 3: Re-birth In the later years of the previous century, cruise travel was revitalised. The sector has grown steadily since 1980, at an estimated annual growth rate of 8%. The cruise industry has targeted new market segments, attracting younger passengers and differentiating the cruise offering.

6. Phase 3: Re-birth This stage has seen the development of: • Fly-cruise options • Increased cruise ship capacities • Variable cruise durations • Variable price options • More choice over itineraries

7. Phase 4: The future In future, analysts expect the following trends to continue: • More mega cruise ships benefiting from larger economies of scale • Greater product differentiation including offerings to families, the youth market and ‘lifestyle’ cruises • More recreational opportunities on board cruise ships

8. Phase 4: The future • More design and technical innovation in cruise ships • New cruise regions, as traditional areas become congested • New cruise locations • Greater conflict between the cruise industry and environmentalists

9. What Next? • Go to the Activity to find out more about this hugely popular sector of the travel and tourism industry