co.uk Copyright 2006 – Biz/ed The Development of the Cruise Sector BTEC National Travel and Tourism

co.uk Copyright 2006 – Biz/ed 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:

co.uk Copyright 2006 – Biz/ed 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.

co.uk Copyright 2006 – Biz/ed 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.

co.uk Copyright 2006 – Biz/ed 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.

co.uk Copyright 2006 – Biz/ed 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

co.uk Copyright 2006 – Biz/ed 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

co.uk Copyright 2006 – Biz/ed 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

co.uk Copyright 2006 – Biz/ed What Next? Go to the Activity to find out more about this hugely popular sector of the travel and tourism industry