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2014 Clia Annual State of the Industry Press Conference & Media Marketplace

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2014 Clia Annual State of the Industry Press Conference & Media Marketplace 2014 CLIA ANNUAL STATE OF THE INDUSTRY PRESS CONFERENCE & MEDIA MARKETPLACE Welcome to 2014 Media Marketplace - Azamara Club Cruises - Seabourn - American Cruise Line - Tauck River Cruises - AMA Waterways - Windstar Cruises - Carnival Cruise Lines Port Representation - Costa Cruises - Port Everglades - Crystal Cruises - South Carolina Port - Cunard Line Authority - Hurtigruten - MSC Cruises - Paul Gauguin - Royal Caribbean CLIA United Under One Banner NORTH AMERICA • EUROPE • BELGIUM & LUXEMBOURG • FRANCE • GERMANY • NETHERLANDS • SPAIN • UK & IRELAND • BRAZIL • ASIA • AUSTRALASIA December 17, 2012 Cruise Industry Forms Global Trade Association New Association Model to Promote “One Industry, One Voice” Global CLIA Alaska UK & Ireland Germany Netherlands NW & Canada France Belgium Europe North America Italy US Spain Asia Hawaii Brazil Australasia CLIA Members 63 cruise line members, representing over 95% of global cruise capacity 13,500 global travel agency members who reach over 50,000 agents 250 Executive Partners (port authorities, destinations, and maritime and industry suppliers) Specialty Cruise Collection CLIA Specialty Cruise Collection Specialty Cruise Collection Top consumer interest in specialty cruising: Attractive destination Scenic, cultural shore options activities and sightseeing Thematic itineraries Smaller ship size and slower pace Personalized service Inclusive pricing and offerings Ability to meet and make new friends Robust Investment for an Expanding Global Cruise Industry 2014 2013 – 2014 16 new ships 29 new ships with 20,000 with 34,000+ beds beds 2014 Global 2015 - 2018 Fleet another 20 Ships 410 Ships 467,629 beds 52,000+ beds CLIA Member Lines New Ships (2014-2018) 1. Royal Caribbean Quantum of the Seas 18. Norwegian Escape (4,200) (4,100) 19.American Cruise Lines (TBD) 2. Norwegian Getaway (3,969) 20.American Cruise Lines (TBD) 3. Costa Cruise Diadema (3,700) 21.Aida Prima (3,250) 4. Regal Princess (3,600) 22.TUI Mein Schiff 4 (2,500) 5. Pearl Mist (210) 23.P&O Brittania (3,611) 6. Avalon Illumination (166) 24.Compagnie du Ponant Le Lyrial (265) 7. Avalon Impression (166) 25.Carnival Vista (4,000) 8. Avalon Poetry II (128) 26.Royal Caribbean Oasis Class 3 (5,400) 9. Tauck ms Inspire (130) 27.Royal Caribbean Oasis Class 3 (5,400) 10.Tauck ms Savor (130) 28.Royal Caribbean Quantum Class (4,180) 11.Uniworld S.S. Catherine (159) 29.Holland America Pinnacle Class (2,660) 12.AmaSonata (164) 30.Regent Seven Seas Explorer (738) 13.AmaReina (164) 31.Seabourn (TBD) 14.Silversea Silver Discoverer (128) 32.Norwegian Bliss (Breakaway) (4,200) 15.TUI Mein Schiff 3 (2,500) 33.American Cruise Lines (TBD) 16.Scenic Cruises Scenic Gem (126) 34.American Cruise Lines (TBD) 17.Royal Caribbean Anthem of the Seas (4,180) 35.Star Cruises (3,364) 36.AIDA (3,250) Passenger Growth Passenger Sourcing (millions) 400,000 growth 2014 Forecast: 21.7 Million in passengers 14 carried 12 10 8 6 Passengers 4 2 0 2007 2008 2009 2010 2011 2012 2013 (F) 2014 (Est) N. America Europe ROW 55.1% 30.1% 14.8% Passenger Sourcing Continues to Diversify Global 5 Year % Passenger Share Change 1 USA 51.7% 15.1% 2 UK & Ireland 8.1% 16.4% 3 Germany 7.7% 80.5% 4 Italy 4.0% 26.1% 5 Australia/New Zealand 3.6% 130.3% 6 Brazil 3.4% 1.3% 7 Canada 3.4% 84.8% 8 Spain 2.8% 20.7% 9 France 2.4% 67.7% 10 Scandinavia & Finland 1.6% 184.6% Global Economic Impact $100 billion in economic impact $33 billion in global wages 775,000 jobs around the world $42 billion U.S. economic impact $17.4 billion in U.S. wages 356,000 jobs in the U.S. Global Deployment Capacity Market Share Alaska 4.8% 2013 Europe w/o Med 4.5% 2014 10.9% 2013 11.1% 2014 Caribbean Mediterranean Asia 34.4% 2013 21.7% 2013 3.4% 2013 37.3% 2014 18.9% 2014 4.4% 2014 South America Australasia 3.9% 2013 5% 2013 3.3% 2014 Other Markets 5.9% 2014 15.8% 2013 14.5% 2014 2014 Itineraries Travel Agents - 40 years of sustained commitment In 2014: - Redesigned Training and Certification - Promote CLIA certification to consumers - Cruise3sixty 10th anniversary - 10 new courses and 25 ship inspections, more than any other conference - National Cruise Vacation Week - Global publicity to support agents Global Executive Partner Program PORTS DESTINATIONS A dedicated, global community of partners united in its commitment to a strong, safe, growing industry Engagement and influence with TRAVEL SUPPLIERS each other and the cruise lines BUSINESS SERVICES PRODUCT SUPPLIERS Events & Incentives at Sea “ 44% of planners say they are considering a cruise incentive for the future.” Incentive Travel Buyers Handbook Nielsen Travel & Performance Group 2008 “ 51% of readers say they use cruises for all size groups.” Corporate Meetings & Incentives 2007 Incentive Trends Survey 8% of companies surveyed listed cruise ships as their first choice for a meeting venue 33% growth over 2009 Employees choose cruising as top incentive choice 38.8% of employees prefer a cruise over land-based incentive options JIM BERRA Chair, CLIA Marketing Committee Chief Marketing Officer, Carnival Cruise Lines Industry Trends & Outlook Top 2014 Cruise Trends Continued development and availability of technology to facilitate and lower the cost of onboard communications as well as to provide more efficient passenger servicing Expectation of first-time passenger growth driven by the 95 million Millennial generation based on population size and positive experiences cruising with their parents Top 2014 Cruise Trends Rebound in luxury cruising (luxury category ships, onboard upgrades) based on an improving economy and increased consumer confidence Multigenerational and celebration travel increase for all passenger source markets with larger sized family as well as social/ affinity groups traveling together Top 2014 Cruise Trends Cruise lines offering more all-inclusive options and packaging in accommodations, services and amenities for increased ease in booking and ship enjoyment Cruises increasingly attracting consumers seeking active vacations with extreme excursions, longer stays in ports for sightseeing and high-energy onboard facilities Top 2014 Cruise Trends Seeing the world in comfort and ease, especially exotic locations, will continue to drive new itinerary creation and cruise ship deployment Hot destinations for 2014 according to CLIA cruise line members include: Trans Pacific, World Cruises, U.S. Rivers, South America, Antarctic, Middle East, Canada/New England, Africa and Exotic Rivers The Top Trend- Product Enhancements What We Heard From Agents Increased use in domestic (US/Canada) Shorter cruises ports of embarkation Exciting onboard Celebrations and innovation multi-gen Global expansion of More informal destinations/itineraries environments Boutique ships Focus Across the Industry Aligns with What Motivates Consumers Value Price Ease of booking Special experiences Multiple Convenience of destinations foreign travel Recommendations: Family, friends Travel agents, F&F bonding Meeting new people These Trends are Helping to Attract First Timers 87.7% reported similar or increased new cruiser sales Agents are Pretty Bullish on 2014 60%+ report 2013 overall travel & cruise sales ranged from 70%+ good to excellent – expect 2014 cruise sales to best year ever range from good to excellent An improving economy is seen by 95% to drive good to better sales over 2013 The Industry is Well Positioned for Continued Growth - Strong value proposition - New and relevant product innovation for our guests - Opportunities for global expansion and continued worldwide economic growth .
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