Why the Cruise Industry is Growing
Expedia CruiseShipCenters franchise owners are benefiting from the booming, multi-billion-dollar cruising industry
Industry data reflects that the cruise industry’s significant growth over several years is not showing signs of slowing down. According to Cruise Lines International Association (CLIA), 32 million people are expected to take a cruise in 2020. The association also points out that the U.S. economic impact of the cruise industry is even larger, at $150 billion annually. These numbers reflect the significant investment cruise lines are currently making to expand their fleets. According to CLIA, over 132 new ships will debut between now and 2027, which demonstrates not only the continued growth of the industry but a commitment to further the industry’s growth from the cruise lines.
Unlike many retail businesses, the cruise franchises have not been diminished by the rise of consumers shopping online. CLIA, in their 2018 Annual Report, notes that most cruises are sold by travel agents, not through websites. In fact, 70% of cruisers book their vacations using a traditional travel agent. The thriving cruising market, as well as consumer trends, have allowed Expedia® CruiseShipCenters® to have viable, profitable businesses that reflect their owners’ passion for travel.
“The true magic of this system, and why it is different, is the credibility of having a location the customer can visit. We also host customer events in the store.” Says Noam Meppen, owner of an Expedia CruiseShipCenters franchise in Scottsdale, AZ.
Cruise franchise appeals to expanding demographic
CLIA reports that the average age of a cruise traveler is 49, with an average income of $114,000. However, while cruising may appeal to the Baby Boomer and Gen X generations, the industry is also experiencing a boom in younger travelers. CLIA reports that more Millennials are cruising than ever before. Furthermore, 9 out of 10 people who cruised said they would cruise again, which bodes well for the future growth of our cruise franchise opportunity.
“We get a lot of people who have cruised before, a lot of retired people,” says Joyce Ripka, owner of an Expedia CruiseShipCenters franchise in Canada. “What is exciting is that we getting more and more families who are discovering how fun it is to cruise together. Our customers see the value in cruising, and they are eager for us to take charge. They want the good value and the good advice.”
While cruises are popular, they are not inexpensive. The average cruise guest pays more than $2,000 for a trip, and they want to make sure they enjoy every penny they are spending. That’s why they are eager to have experts to talk to and learn from, experts who can design travel plans that aren’t cookie-cutter. According to Cruise Lines International, three-quarters of cruises are still sold by travel agents (2015 North American Market Profile). Even in the age of the Internet, planning a cruise can be complicated and involved without a consultant to serve as a guide. The positive experience our Vacation Consultants give our customers is the reason our customers keep coming back to us to book their subsequent cruises.
“The value we add is in being thoughtful,” says Mary Beth Casey, owner of an Expedia CruiseShipCenters franchise in Fort Lauderdale, Florida. “We have to know what this vacation will bring to them and their families. There’s a lot of patience and hand-holding from our side. Our customers can ask anything from the simplest questions to the most absurd. When our customers get off the ship, we do a follow-up: Did we meet their expectations? Where are they going to go next?”