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

What Happens Now – Cruise Reset

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 expects 305 vessels with 550,000 berths to be in the global market in May – 90% of the global fleet – just in time for the key Alaska and European cruise seasons. Not only will the cruise lines themselves be looking for bookings to increase and revenues to flourish, but as importantly, the industries supporting cruise have been idled as well and are keen to begin again.

No doubt the industry has shown resilience as it always has in the past, but by far this has been the biggest worldwide challenge. Each of the individual brands has charted and navigated separate pathways through the unprecedented health emergency, financial calamity, and enormous operational and sales & marketing challenges posed over the past two years. Now cruise brands are in many ways entering a new world where environment, sustainability, health, communication, and partnership, amongst others, are also part of the tourism industry atmosphere.

With the tide of the pandemic receding, and a world that is more knowledgeable and more prepared for life with coronavirus, cruising is back, stronger, and safer than ever.

Before the pandemic struck, cruises were the fastest growing sector within the travel industry. Based on the recovery to date, the order book, and announcements from key cruise lines, the industry is likely to regain that position. So we wanted to focus this bulletin on the future! What is next for the industry? What big ideas will be influencing it and how can we be prepared?

The Smart Play – Pathway Forward

As the industry opens over the next two to five years, the focus will be on profitability by increasing market share in new and existing regions and strategically developing cruise destinations, both new and existing, to meet future demand. (Based on the latest cruise ship orderbook, at least ~170,000 new berths will enter the market over the next 4.5 years.)

Perceptions and attitudes in the world have changed and they will impact how people look at travel, specifically cruise products. Maintaining high standards for onboard health and hygiene will be critical, as will the health impacts of cruise guests on ports worldwide. Geopolitical issues with the War in Ukraine and rising tensions with both China and Russia may also stifle the development of the much-touted China cruise market and make it untenable moving forward, as well as impact the Baltic region that has seen tremendous success. Thus, a focus, at least in the near- to mid-term, is moving the U.S. consumer-based cruise industry back to safer climes in the Caribbean region.

When that happens, coupled with the continued newbuild deliveries into the world cruise system, there will be strong demand for new and expanded destinations in key areas of the Caribbean region to absorb new deployments and repositioned vessels.

While North America homeport berth expansion is responding with new facilities coming online at the ports of Miami, Canaveral, Galveston, and Port Everglades, it is also critical to have destinations support substantial cruise growth and absorb community impacts. Strong partnerships grounded in mutual respect, cooperation, and communication will be vital to provide sustainable cruise destination development that will serve the industry and, most importantly, visitors and residents, into the future.

The cruise industry and tourism destinations need to develop a smarter growth strategy that addresses the realities of multiple vessels in port simultaneously, destination peaking, and the role the industry can play in course-correcting a better way forward.

Let’s Make a Plan Together

Cruise tourism destinations will be at the forefront of infrastructure development to support cruise tourism growth and deliver a valuable shoreside experience both at the homeport and port of call.

Luis Ajamil, our President & CEO, will be speaking on a Seatrade Cruise Global Panel on Wednesday, April 27th from 12:15 – 1:00 pm in room 206/208. The focus is on Increasing Caribbean & Mexico Port Capacity in Light of Home Port Expansion & Ship Deliveries into North America. Key points that will be discussed include the following:

• The pandemic, combined with geopolitical issues, is making the Caribbean and Americas markets the safe play for the industry.
• This creates more demand for destinations in certain parts of the Caribbean to be able to absorb capacity.
• In the western Caribbean, a combination of homeport and ports of call can succeed if properly planned.
• Older ports will need to retool to compete with new destinations.
• Shopping is no longer the main source of destination revenues…its visitor experiences. Combining the two could make for a smart play moving forward. 

Additionally, BA will be at booth (#1212) at Seatrade. Stop by to view our worldwide projects and new facilities, as well as to discuss more about the industry’s path forward and how BA can help you prepare for a successful future.

 

The BA Team is the leading cruise destination and port planning and development firms 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/destinations 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.

BA leads the world in the number and breadth of cruise market assessments and strategic cruise tourism planning efforts performed for countries, ports, cities, tourism boards, cruise associations, private entities, investors, and port/terminal operators. 

BA CRUISE BULLETINS

How CII Could Impact Ports & Itineraries

The Carbon Intensity Indicator (CII), introduced by the IMO in 2023, measures the environmental efficiency of ships by evaluating CO2 emissions per nautical mile traveled…

Q1 2024 Earnings Report Summary

In the first quarter of 2024, the leading public cruise corporation Carnival Corporation, Royal Caribbean Group (RCG), and Norwegian Cruise Line Holdings (NCLH) have set a promising tone for the remainder of 2024

Q4 2023 Earnings Report Summary

The leading public cruise corporations—Carnival, Royal Caribbean, and Norwegian—concluded 2023 on a high note, as demonstrated by their Q4 earnings reports.

Unveiling BA’s 2024 Comprehensive Cruise Itinerary Insights

BA unveils its expansive 2024 cruise itinerary database, spanning 13,700 sailings across 47 brands and 320 ships globally…

With 2023 coming to a close, BA explores what is in store for 2024

With 2023 coming to a close, BA explores what is in store for 2024…

Q3 2023 Earnings Call Summary

With the final earnings report for Q3 2023 released by the last of the big three public Cruise Corporations yesterday…

Shore Power Adoption in the Cruise Industry

One key technology and noteworthy initiative is the adoption of Shore Side Electricity (SSE) or shore power. In BA’s previous bulletins…

Q2 2023 Earnings Report Summary

With the last of the big three public companies wrapping up their Q2 2023 earnings reports in the past weeks, it’s time for BA’s summary of the key takeaways and themes trending today.

The Port’s Role in the Decarbonization of the Cruise (& Shipping) Industry

In our last bulletin, we talked about the cruise industry’s push toward decarbonization, and the exploration of various alternative fuel options such as LNG, methanol, and biofuels. The key takeaway was that decarbonization will be a collaborative effort across the entire maritime industry…

Green Fuels in the Cruise Industry – A Sustainable Path Forward

The cruise industry is embarking on a sustainability voyage, seeking innovative solutions to reduce its environmental impact and embrace greener practices…

What Happens Now – Cruise Reset

What Happens Now – Cruise Reset

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 expects 305 vessels with 550,000 berths to be in the global market in May – 90% of the global fleet – just in time for the key Alaska and European cruise seasons. Not only will the cruise lines themselves be looking for bookings to increase and revenues to flourish, but as importantly, the industries supporting cruise have been idled as well and are keen to begin again.

No doubt the industry has shown resilience as it always has in the past, but by far this has been the biggest worldwide challenge. Each of the individual brands has charted and navigated separate pathways through the unprecedented health emergency, financial calamity, and enormous operational and sales & marketing challenges posed over the past two years. Now cruise brands are in many ways entering a new world where environment, sustainability, health, communication, and partnership, amongst others, are also part of the tourism industry atmosphere.

With the tide of the pandemic receding, and a world that is more knowledgeable and more prepared for life with coronavirus, cruising is back, stronger, and safer than ever.

Before the pandemic struck, cruises were the fastest growing sector within the travel industry. Based on the recovery to date, the order book, and announcements from key cruise lines, the industry is likely to regain that position. So we wanted to focus this bulletin on the future! What is next for the industry? What big ideas will be influencing it and how can we be prepared?

The Smart Play – Pathway Forward

As the industry opens over the next two to five years, the focus will be on profitability by increasing market share in new and existing regions and strategically developing cruise destinations, both new and existing, to meet future demand. (Based on the latest cruise ship orderbook, at least ~170,000 new berths will enter the market over the next 4.5 years.)

Perceptions and attitudes in the world have changed and they will impact how people look at travel, specifically cruise products. Maintaining high standards for onboard health and hygiene will be critical, as will the health impacts of cruise guests on ports worldwide. Geopolitical issues with the War in Ukraine and rising tensions with both China and Russia may also stifle the development of the much-touted China cruise market and make it untenable moving forward, as well as impact the Baltic region that has seen tremendous success. Thus, a focus, at least in the near- to mid-term, is moving the U.S. consumer-based cruise industry back to safer climes in the Caribbean region.

When that happens, coupled with the continued newbuild deliveries into the world cruise system, there will be strong demand for new and expanded destinations in key areas of the Caribbean region to absorb new deployments and repositioned vessels.

While North America homeport berth expansion is responding with new facilities coming online at the ports of Miami, Canaveral, Galveston, and Port Everglades, it is also critical to have destinations support substantial cruise growth and absorb community impacts. Strong partnerships grounded in mutual respect, cooperation, and communication will be vital to provide sustainable cruise destination development that will serve the industry and, most importantly, visitors and residents, into the future.

The cruise industry and tourism destinations need to develop a smarter growth strategy that addresses the realities of multiple vessels in port simultaneously, destination peaking, and the role the industry can play in course-correcting a better way forward.

Let’s Make a Plan Together

Cruise tourism destinations will be at the forefront of infrastructure development to support cruise tourism growth and deliver a valuable shoreside experience both at the homeport and port of call.

Luis Ajamil, our President & CEO, will be speaking on a Seatrade Cruise Global Panel on Wednesday, April 27th from 12:15 – 1:00 pm in room 206/208. The focus is on Increasing Caribbean & Mexico Port Capacity in Light of Home Port Expansion & Ship Deliveries into North America. Key points that will be discussed include the following:

• The pandemic, combined with geopolitical issues, is making the Caribbean and Americas markets the safe play for the industry.
• This creates more demand for destinations in certain parts of the Caribbean to be able to absorb capacity.
• In the western Caribbean, a combination of homeport and ports of call can succeed if properly planned.
• Older ports will need to retool to compete with new destinations.
• Shopping is no longer the main source of destination revenues…its visitor experiences. Combining the two could make for a smart play moving forward. 

Additionally, BA will be at booth (#1212) at Seatrade. Stop by to view our worldwide projects and new facilities, as well as to discuss more about the industry’s path forward and how BA can help you prepare for a successful future.

The BA Team is the leading cruise destination and port planning and development firms 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/destinations 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.

BA leads the world in the number and breadth of cruise market assessments and strategic cruise tourism planning efforts performed for countries, ports, cities, tourism boards, cruise associations, private entities, investors, and port/terminal operators. 

CRUISE BULLETINS

How CII Could Impact Ports & Itineraries

The Carbon Intensity Indicator (CII), introduced by the IMO in 2023, measures the environmental efficiency of ships by evaluating CO2 emissions per nautical mile traveled…

Q1 2024 Earnings Report Summary

In the first quarter of 2024, the leading public cruise corporation Carnival Corporation, Royal Caribbean Group (RCG), and Norwegian Cruise Line Holdings (NCLH) have set a promising tone for the remainder of 2024

Q4 2023 Earnings Report Summary

The leading public cruise corporations—Carnival, Royal Caribbean, and Norwegian—concluded 2023 on a high note, as demonstrated by their Q4 earnings reports.

Unveiling BA’s 2024 Comprehensive Cruise Itinerary Insights

BA unveils its expansive 2024 cruise itinerary database, spanning 13,700 sailings across 47 brands and 320 ships globally…

With 2023 coming to a close, BA explores what is in store for 2024

With 2023 coming to a close, BA explores what is in store for 2024…

Q3 2023 Earnings Call Summary

With the final earnings report for Q3 2023 released by the last of the big three public Cruise Corporations yesterday…

Shore Power Adoption in the Cruise Industry

One key technology and noteworthy initiative is the adoption of Shore Side Electricity (SSE) or shore power. In BA’s previous bulletins…

Q2 2023 Earnings Report Summary

With the last of the big three public companies wrapping up their Q2 2023 earnings reports in the past weeks, it’s time for BA’s summary of the key takeaways and themes trending today.

The Port’s Role in the Decarbonization of the Cruise (& Shipping) Industry

In our last bulletin, we talked about the cruise industry’s push toward decarbonization, and the exploration of various alternative fuel options such as LNG, methanol, and biofuels. The key takeaway was that decarbonization will be a collaborative effort across the entire maritime industry…

Green Fuels in the Cruise Industry – A Sustainable Path Forward

The cruise industry is embarking on a sustainability voyage, seeking innovative solutions to reduce its environmental impact and embrace greener practices…

Q1 2023 Earnings Report Key Themes and Takeaways

With the last of the big three public companies wrapping up their Q1 2023 earnings reports last week, it’s time for BA’s summary of the key takeaways and themes trending today, and what that means for the future of the industry…

How did 2022 end up and what happens next in 2023

2022 was a monumental transition year where operators placed ships back in operation throughout the first half of the year. After almost three years of uncertainty…

Ports should get ready for an increase in shorter itineraries

BA has just completed an analysis of the 2023 cruise capacity placement using its deployment database which has more than 10,000 sailings, 40 brands, and 300 ships worldwide, thus allowing BA to understand capacity placement by the industry…

2023 global passenger volumes will reach and very likely exceed 2019 levels but distributed differently

BA has just completed an analysis of the 2023 cruise capacity placement using its deployment database which has more than 10,000 sailings, 40 brands, and 300 ships worldwide, thus allowing BA to understand capacity placement by the industry…

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…

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