Market Analysis Cruise Sector
Managerial Economics
Market Analysis Report – Cruise Sector
Blue Group #9
Matteo Tuninetto
Frosina Bollo
Antonio Marchitelli
Anna Rottmayr
ME – Market Analysis Report
Blue Group # 9
Page 1 of 14
Content
1.
Market definition
3
2.
Cost structure
3
2.1.
Capex vs. Opex
4
2.2.
Fixed vs. variable costs
5
2.3.
Entry costs
6
3.
Demand drivers
7
3.1.
Purchase decisions
8
3.2.
Trends in demand that affect revenues
8
4.
Competitive situation
9
4.1.
Market Concentration
10
4.2.
Product differentiation
10
4.3.
Production capacity
11
4.4.
Profitability
12
5.
Conclusions
13
6.
Sources
14
ME – Market Analysis Report
Blue Group # 9
Page 2 of 14
1. Market definition
The modern cruise sector relates to the tourism and leisure industry and is a highly consolidated market with four main cruise operators (Carnival, Royal Caribbean, Norwegian Cruises and MSC) controlling about
85% of capacity. The competition for world market takes place through developing innovative commercial strategies and huge investments in R&D for state-of-the-art vessels.
The cruise industry has become diversified to attract a wide array of customer groups by innovating through the development of new destinations, ship design, onboard amenities, facilities and services, and shore-side activities.
The demand side of the market is highly attractive. Penetration in the global market has been growing steadily and is expected to increase further. The typical customer is, on average, older than non-cruiser vacationer (50 vs 45 – 47)1, and reports a higher average income.
The market for the cruise industry is recognized as a full-fledged touristic alternative competing with others non-cruiser tourism and leisure options.
The most relevant supply boundaries can be identified in the shipbuilder firms and in the ports in which the vessels operate.
In terms of geography, we will focus this analysis on the global scale due to the high concentration and relatively small
Market Analysis Report – Cruise Sector
Blue Group #9
Matteo Tuninetto
Frosina Bollo
Antonio Marchitelli
Anna Rottmayr
ME – Market Analysis Report
Blue Group # 9
Page 1 of 14
Content
1.
Market definition
3
2.
Cost structure
3
2.1.
Capex vs. Opex
4
2.2.
Fixed vs. variable costs
5
2.3.
Entry costs
6
3.
Demand drivers
7
3.1.
Purchase decisions
8
3.2.
Trends in demand that affect revenues
8
4.
Competitive situation
9
4.1.
Market Concentration
10
4.2.
Product differentiation
10
4.3.
Production capacity
11
4.4.
Profitability
12
5.
Conclusions
13
6.
Sources
14
ME – Market Analysis Report
Blue Group # 9
Page 2 of 14
1. Market definition
The modern cruise sector relates to the tourism and leisure industry and is a highly consolidated market with four main cruise operators (Carnival, Royal Caribbean, Norwegian Cruises and MSC) controlling about
85% of capacity. The competition for world market takes place through developing innovative commercial strategies and huge investments in R&D for state-of-the-art vessels.
The cruise industry has become diversified to attract a wide array of customer groups by innovating through the development of new destinations, ship design, onboard amenities, facilities and services, and shore-side activities.
The demand side of the market is highly attractive. Penetration in the global market has been growing steadily and is expected to increase further. The typical customer is, on average, older than non-cruiser vacationer (50 vs 45 – 47)1, and reports a higher average income.
The market for the cruise industry is recognized as a full-fledged touristic alternative competing with others non-cruiser tourism and leisure options.
The most relevant supply boundaries can be identified in the shipbuilder firms and in the ports in which the vessels operate.
In terms of geography, we will focus this analysis on the global scale due to the high concentration and relatively small