BA Cruise Bulletin – 95% Berths in Operation by August; Talk to Us at Seatrade to See What That Means for You!

Continuing & Building a New Tradition with BA’s Bulletins.

It has been a while since our BA team ventured forth and sent out a cruise bulletin, mostly focused on Covid-19 and the cruise industry recovery. Today, we share our first bulletin in a while, and also believe it is a suitable time to continue these bulletins focusing on topics ranging from port and destination infrastructure to consumer demand and market growth, vessel new buildings, and a variety of other topics such as terminal and marine modeling, intuitive terminal design, sustainability, environment, and others.

Thus, with this in mind, should any of the readers of the cruise bulletin wish the BA team to write on a specific topic, please let us know, and we will do our best to meet the challenge. However, we will stick to what we know and not venture too far afield from our core competency in the cruise and maritime sectors. We are looking forward to propelling the cruise tourism and port industry forward. The BA team hopes to see you at Seatrade Cruise Global, here in Miami. Visit us at Booth 1212.

Sincerely,

the BA Team.

 

Cruise Industry Today

We have all heard the news: the CDC has dropped all warnings attached to cruising since the beginning of the pandemic and no sail order on March 14, 2020, leaving it up to the cruise consumer to decide whether they feel safe getting on a cruise ship for a holiday adventure.

This is good news that validates the arduous work, cooperation, and flexibility of everyone in the industry who implemented (and reimplemented) rigorous public health measures, shoreside and onboard, to ensure a safe and healthy cruise experience. A job well done to not only cruise lines, but ports, tour operators, crew, passengers, and a myriad of behind-the-scenes port agents, operators, stevedores, and others who have persevered during the last two years.

This news will further propel the large-scale recovery already underway. In April, ~280 ocean-going cruise vessels are expected to sail. This equates to over 500,000 berths now in operation (~80% of the global fleet capacity). Based on resumption announcements to date, 95% of the global fleet capacity will be sailing by August. (Be sure to check out BA’s Cruise Recovery Dashboard for the latest figures.)

What does that mean for actual passengers? The major factor in summing total passenger participation in the cruise industry will be not only the available berths in the market but the actual occupancy rate onboard for each sailing. To date, those have ranged from 35% to 100%+, dependent upon the brand and destination.

As the year moves ahead, pandemic fears subside, and travelers begin to increase in their holiday participation levels, the industry could see somewhere between 19.2 and 27.3-million cruise passengers by the end of 2022. However, due to ongoing resumption efforts and onboard occupancy brand-imposed limitations, actual passenger volumes will not reach 2019 levels until late-2022 or the first half of 2023.

Carnival resonated these thoughts in their Q1 2022 earnings call. They confirmed they had 40-plus sailings with occupancies exceeding 100%, and for future bookings, they have “a lot of sailings at 100%, which is showing that things are returning to business as normal”, and that they “have the ability to sell at 100% with protocols and still serve the interest of public health with really good outcomes from a health and safety standpoint.”

Since resumption, Carnival Corp alone has delivered 2.2 million cruise vacations and counting. During its last quarter alone, it carried over 1 million guests, with the anticipation of carrying nearly 14 million guests in 2023.

 

Prepare for the Future

The industry is well on track to pick up its successful trajectory in the coming year. Ports and destination partners will continue to be at the forefront of infrastructure development to support cruise tourism growth and deliver a valuable shoreside product and services and do it in a way that preserves the individual destination’s sustainability and integrity for future visitors; making it so consumers and cruise lines want to come back for more! Stop by BA’s booth (1212) at Seatrade to discuss more about the industry’s recovery and how BA can help you prepare for the industry’s successful future.

The BA team is the leading cruise destination and port planning and development firm worldwide. With projects located on six continents and its world-renowned expertise in cruise, cargo, and port operations, we stand as a global leader and one of only a handful of Cruise Facility Architectural Design, Marine Engineering, and Planning firms responsible for shaping the way waterfronts operate and respond to the diverse and complex needs of the cruise industry.

BA has played a key role in the development of cruise port facilities by delivering innovative solutions to the growing travel demands of the world’s seaports to meet the needs and expectations of the cruise industry and its passengers. We understand cruise destination facilities from all facets of operations, including financials, design & development, cruise line strategy, port operations, navigation, security, Customs, Immigration & health quarantine, environmental, sustainability, and community interests.

Additionally, BA leads the world in the number and breadth of cruise market assessments performed for countries, ports, cities, tourism boards, cruise associations, private entities, investors, and port/terminal operators. For more than 20-years, our team has forecast cruise passenger movement and berth demand as part of major strategic planning efforts, cruise facility development, tourism development, and financial analysis worldwide.

CRUISE BULLETINS

Summary & Takeaways from Q3 Earnings Reports (CCL, RCG, NCLH)

A Normalizing Environment Paving Way for Strong 2023. The theme for CCL, RCG, and NCLH on this quarter’s earning calls was each company’s focus which has fully shifted from return to service to a relentless focus on return to strong profitability…

BA CRUISE BULLETIN – The Industry’s Quarterly Update from the Big Three (Public) Companies

This quarter’s earnings reports from Carnival Corp. (June 24), Royal Caribbean Group (July 28), and NCLH (August 9) have sent stocks down, up, and back down again, but overall, the business seems to have taken positive turns, including each company’s operating cash flow for the quarter…

Another Global Hurdle for the Cruise Industry? An Industry on the Rise

According to the most recent World Bank’s latest Global Economic Prospects Report, compounding the damage from the pandemic, the Russian invasion of Ukraine has magnified the slowdown in the global economy, which is entering what could become a protracted period of feeble growth and elevated inflation. The U.S. inflation rate passed 8.3%, the highest in more than 40 years, accompanied by the highest nationwide gas prices ever, and amidst the need for workers in many service industries, there have been layoffs in key tech sectors.

Big Three Cruise Corporations Q1 Earnings Summary

Resounding across all the major cruise operators’ quarterly earnings calls this week (CCLs in March), was that the industry (and each of the brands) have all reached “significant milestones” in their restart process that need to be celebrated. While 2022 is undoubtedly a transition year, 2023 appears to be shaping up to reach the industry’s full potential. NCLH’s presentation included the graphic below, which shows how far the industry has come over the last two and a half years of near-complete shutdown. In this newsletter, BA compares and summarizes key performance, financials, and trends across the big three cruise corporations based on their recent quarterly earnings calls.

The Pathway Forward Anticipates Substantial Cruise Growth, Are you Ready?

It has now been more than two years since the entire worldwide cruise tourism industry ground to a halt due to the Covid-19 pandemic and the subsequent government interventions that impacted all facets of our lives. For the past year, the industry has been slowly and meticulously resetting the onboard and shoreside guest experience through the development of protocols and procedures to get back to the business of cruising and providing people worldwide with great holidays!

BA Cruise Bulletin – Future of the Cruise Industry is Bright, According to the Major Cruise Lines

Protocols are Working, and Restoring Consumer Confidence in the Sector Many people have said in recent times that…

BA CRUISE BULLETIN – 95% Berths in Operation by August; Talk to Us at Seatrade to See What That Means for You!

It has been a while since our BA team ventured forth and sent out a cruise bulletin, mostly focused on Covid-19 and the cruise industry recovery…

BA Cruise Bulletin: 95% Berths in Operation by August; Talk to Us at Seatrade to See What That Means for You!

Continuing & Building a New Tradition with BA’s Bulletins.

It has been a while since our BA team ventured forth and sent out a cruise bulletin, mostly focused on Covid-19 and the cruise industry recovery. Today, we share our first bulletin in a while, and also believe it is a suitable time to continue these bulletins focusing on topics ranging from port and destination infrastructure to consumer demand and market growth, vessel new buildings, and a variety of other topics such as terminal and marine modeling, intuitive terminal design, sustainability, environment, and others.

Thus, with this in mind, should any of the readers of the cruise bulletin wish the BA team to write on a specific topic, please let us know, and we will do our best to meet the challenge. However, we will stick to what we know and not venture too far afield from our core competency in the cruise and maritime sectors. We are looking forward to propelling the cruise tourism and port industry forward. The BA team hopes to see you at Seatrade Cruise Global, here in Miami. Visit us at Booth 1212.

Sincerely,

the BA Team.

Cruise Industry Today

We have all heard the news: the CDC has dropped all warnings attached to cruising since the beginning of the pandemic and no sail order on March 14, 2020, leaving it up to the cruise consumer to decide whether they feel safe getting on a cruise ship for a holiday adventure.

This is good news that validates the arduous work, cooperation, and flexibility of everyone in the industry who implemented (and reimplemented) rigorous public health measures, shoreside and onboard, to ensure a safe and healthy cruise experience. A job well done to not only cruise lines, but ports, tour operators, crew, passengers, and a myriad of behind-the-scenes port agents, operators, stevedores, and others who have persevered during the last two years.

This news will further propel the large-scale recovery already underway. In April, ~280 ocean-going cruise vessels are expected to sail. This equates to over 500,000 berths now in operation (~80% of the global fleet capacity). Based on resumption announcements to date, 95% of the global fleet capacity will be sailing by August. (Be sure to check out BA’s Cruise Recovery Dashboard for the latest figures.

What does that mean for actual passengers? The major factor in summing total passenger participation in the cruise industry will be not only the available berths in the market but the actual occupancy rate onboard for each sailing. To date, those have ranged from 35% to 100%+, dependent upon the brand and destination.

As the year moves ahead, pandemic fears subside, and travelers begin to increase in their holiday participation levels, the industry could see somewhere between 19.2 and 27.3-million cruise passengers by the end of 2022. However, due to ongoing resumption efforts and onboard occupancy brand-imposed limitations, actual passenger volumes will not reach 2019 levels until late-2022 or the first half of 2023.

Carnival resonated these thoughts in their Q1 2022 earnings call. They confirmed they had 40-plus sailings with occupancies exceeding 100%, and for future bookings, they have “a lot of sailings at 100%, which is showing that things are returning to business as normal”, and that they “have the ability to sell at 100% with protocols and still serve the interest of public health with really good outcomes from a health and safety standpoint.”

Since resumption, Carnival Corp alone has delivered 2.2 million cruise vacations and counting. During its last quarter alone, it carried over 1 million guests, with the anticipation of carrying nearly 14 million guests in 2023.

 

Prepare for the Future

The industry is well on track to pick up its successful trajectory in the coming year. Ports and destination partners will continue to be at the forefront of infrastructure development to support cruise tourism growth and deliver a valuable shoreside product and services and do it in a way that preserves the individual destination’s sustainability and integrity for future visitors; making it so consumers and cruise lines want to come back for more! Stop by BA’s booth (1212) at Seatrade to discuss more about the industry’s recovery and how BA can help you prepare for the industry’s successful future.

The BA team is the leading cruise destination and port planning and development firm worldwide. With projects located on six continents and its world-renowned expertise in cruise, cargo, and port operations, we stand as a global leader and one of only a handful of Cruise Facility Architectural Design, Marine Engineering, and Planning firms responsible for shaping the way waterfronts operate and respond to the diverse and complex needs of the cruise industry.

BA has played a key role in the development of cruise port facilities by delivering innovative solutions to the growing travel demands of the world’s seaports to meet the needs and expectations of the cruise industry and its passengers. We understand cruise destination facilities from all facets of operations, including financials, design & development, cruise line strategy, port operations, navigation, security, Customs, Immigration & health quarantine, environmental, sustainability, and community interests.

Additionally, BA leads the world in the number and breadth of cruise market assessments performed for countries, ports, cities, tourism boards, cruise associations, private entities, investors, and port/terminal operators. For more than 20-years, our team has forecast cruise passenger movement and berth demand as part of major strategic planning efforts, cruise facility development, tourism development, and financial analysis worldwide.

CRUISE BULLETINS

Summary & Takeaways from Q3 Earnings Reports (CCL, RCG, NCLH)

A Normalizing Environment Paving Way for Strong 2023. The theme for CCL, RCG, and NCLH on this quarter’s earning calls was each company’s focus which has fully shifted from return to service to a relentless focus on return to strong profitability…

BA CRUISE BULLETIN – The Industry’s Quarterly Update from the Big Three (Public) Companies

This quarter’s earnings reports from Carnival Corp. (June 24), Royal Caribbean Group (July 28), and NCLH (August 9) have sent stocks down, up, and back down again, but overall, the business seems to have taken positive turns, including each company’s operating cash flow for the quarter…

Another Global Hurdle for the Cruise Industry? An Industry on the Rise

According to the most recent World Bank’s latest Global Economic Prospects Report, compounding the damage from the pandemic, the Russian invasion of Ukraine has magnified the slowdown in the global economy, which is entering what could become a protracted period of feeble growth and elevated inflation. The U.S. inflation rate passed 8.3%, the highest in more than 40 years, accompanied by the highest nationwide gas prices ever, and amidst the need for workers in many service industries, there have been layoffs in key tech sectors.

Big Three Cruise Corporations Q1 Earnings Summary

Resounding across all the major cruise operators’ quarterly earnings calls this week (CCLs in March), was that the industry (and each of the brands) have all reached “significant milestones” in their restart process that need to be celebrated. While 2022 is undoubtedly a transition year, 2023 appears to be shaping up to reach the industry’s full potential. NCLH’s presentation included the graphic below, which shows how far the industry has come over the last two and a half years of near-complete shutdown. In this newsletter, BA compares and summarizes key performance, financials, and trends across the big three cruise corporations based on their recent quarterly earnings calls.

The Pathway Forward Anticipates Substantial Cruise Growth, Are you Ready?

It has now been more than two years since the entire worldwide cruise tourism industry ground to a halt due to the Covid-19 pandemic and the subsequent government interventions that impacted all facets of our lives. For the past year, the industry has been slowly and meticulously resetting the onboard and shoreside guest experience through the development of protocols and procedures to get back to the business of cruising and providing people worldwide with great holidays!

BA Cruise Bulletin – Future of the Cruise Industry is Bright, According to the Major Cruise Lines

Protocols are Working, and Restoring Consumer Confidence in the Sector Many people have said in recent times that…

BA CRUISE BULLETIN – 95% Berths in Operation by August; Talk to Us at Seatrade to See What That Means for You!

It has been a while since our BA team ventured forth and sent out a cruise bulletin, mostly focused on Covid-19 and the cruise industry recovery…

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