state of the global cruise industry · norwegian cruise line holdings, asia pacific state of the...

Steve Odell

Chairman CLIA Australasia &

Senior Vice President and Managing Director Norwegian Cruise Line Holdings, Asia Pacific

State of the Global Cruise Industry

& NCLH’s emergence in to our region

The Global Cruise Industry Outlook

Global growth in cruising

Source: CLIA 2017 Industry Outlook

New-build pipeline


Economic impact


Joel Katz CLIA Managing Director

Sarina Bratton Ponant Yacht Cruises

& Expeditions

Karen Christensen Crystal Cruises

Lynne Clarke MSC Cruises

Stuart Allison Princess Cruises

Jennifer Vandekreeke Carnival Cruise Line

Adam Armstrong Royal Caribbean

International

Andrew Millmore Tauck

Australasia Executive Board

9

Then: 2010 12,000 CLIA Travel Agents

Now: 2016 More than 25,000 CLIA Travel Agents Globally

Cruise Specialists

The Australian Cruise Industry

The Australian Cruise Industry

1,281,159 Australians enjoyed an Ocean Cruise

#1 Source Market for PENETRATION

#3 Source Market for GROWTH

#19.4% Average Growth for 10 years

Australian market growth – Passenger numbers

Source: CLIA 2016 Australia Source Market Report

1,281,159

More Australians cruise than visit the USA.

Twice as many passengers as visit the UK.

Three times as many as went to Fiji.

Australian market growth – Market penetration


Australian market growth – Global comparison


Australian cruise market – Passenger origin


Australian cruise market – Booking patterns


Australian cruise market – Passenger age


Australian cruise market – Economic Contribution

Source: CLIA 2016 Economic Impact Report

Total Contribution +27%

PASSENGER VISIT DAYS

EMPLOYMENT

VALUE-ADDED

DIRECT & INDIRECT CONTRIBUTION

COMPENSATION

18,700 FTE’s

2.8 M

$1.3 B

$2.4 B

$4.6 Billion

$4.6 Billion

Economic contribution by state

Source: CLIA 2016 Economic Impact Report

WHERE ARE AUSTRALIANS CRUISING?

Australian cruise market – Destination share


26.0%

42.4%

8.3%

AUSTRALIA

332,979 (+23.4%)

SOUTH PACIFIC

542,825 (+41.4%)

NEW ZEALAND

106,737 (+6.1%)

76.7% of Australians stayed local 30% more than in 2015

45% Increase in Homeported Ship Visit

Days

Cruise Ship Visit Days 39% Growth

Ship capacity growth

2000

2016

2004

2012

2008

Homeported Ships +31.1% International Ships -9.4%

2015/16

2014/15 2.1 mill

2.6 mill

Passenger port Days

International Passengers

Domestic Passengers

Homeport

Transit Port

Homeport

Transit Port

$708/day

$186/day

$508/day

$151/day

Average Passenger Spend

2m passengers by 2020?

11.8% Annual Growth for the next 4 years

Cruise Trends to watch for

NCLH’S EMERGENCE IN TO OUR REGION

Norwegian Cruise Line Holdings

Three unique positionings

BRAND POSITIONING FEEL FREE™ THE FINEST CUISINE

AT SEA™ THE MOST INCLUSIVE LUXURY EXPERIENCE™

MARKET SEGMET CONTEMPORARY UPPER PREMIUM LUXURY

# OF VESSELS 16 6 4

# OF BERTHS 46,594 5,236 2,640

VESSEL SIZE LARGE MID-SIZE SMALL

BERTH RANGES 1,950 – 4,250 684 – 1,250 490 - 750

Unrivalled expansion

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

SIRENA

SEVEN SEAS EXPLORER

NORWEGIAN JOY

NORWEGIAN BLISS

SEVEN SEAS EXPLORER II

BREAKAWAY BREAKAWAY

BREAKAWAY

BREAKAWAY

BREAKAWAY

LEONARDO CLASS

Regional Growth

Asia Pacific expansion

Australia Japan Singapore Hong Kong India

APAC growing team

Jan 2015: 35

Dec 2017: 119

d i s t r i b u t i o n m o d e l p re - S y d n e y o f f i c e

star cruises and wholesalers

cruise management and

select distribution

partners

wiltrans and select

distribution partners

Pa t h w ay t o s u c c e s s

understand brand value and USP’s

lead & sell with

confidence

be seen in the right places

don’t give up our value

proposition

don’t be led by price and

discount

NORWEGIAN CRUISE LINE FEEL FREE™

Norwegian Cruise Line AUNZ

• Demographic overview

• 45+ and families

• Mix of metro and regional audiences

• Predominantly live in NSW and QLD

• Annual HH income of >$140k

• Behaviour overview

• Seasoned cruisers

• Likely to travel with their partners

• On average, take one international holiday per year

• Top three reasons they cruise are “to experience new things,” “need a break from the day-

to-day routine” and having a “general interest in a certain destination.”

UNIQUE INTER-ISLAND HAWAI`I OFFERING

NORWEGIAN JEWEL

Jewel Itinerary Snapshot

5 DAYS FROM SYDNEY

DEPARTS 12 NOVEMBER 2017

9 or 10 DAYS FROM SYDNEY

14 DECEMBER 2017 & 10 Feb 2018

13 DAYS FROM SYDNEY

17 NOVEMBER & 23 DECEMBER 2017

TASTE OF TASMANIA SOUTHERN AUSTRALIA HIGHLIGHTS NEW ZEALAND HIGHLIGHTS

INAUGURAL AUSTRALIA SAILING

Regional Ports of call NCLH

EDEN, NEW SOUTH WALES 12 PORTS OF CALL

Norwegian Jewel

Seven Seas Voyager Seven Seas Mariner

Seven Seas Navigator Regatta

NEWCASTLE, NEW SOUTH WALES 3 PORTS OF CALL

Norwegian Jewel

Seven Seas Voyager Regatta

BURNIE, TASMANIA 18 PORTS OF CALL

Norwegian Jewel


Seven Seas Navigator Insignia Regatta

KANGAROO ISLAND, SOUTH AUSTRALIA 6 PORTS OF CALL

Norwegian Jewel

Regatta

ADELAIDE, SOUTH AUSTRALIA 7 PORTS OF CALL

Norwegian Jewel

Seven Seas Navigator Seven Seas Mariner

Regatta

HOBART, TASMANIA 2 PORTS OF CALL

Norwegian Jewel

TOWNSVILLE, QUEENSLAND 5 PORTS OF CALL


Insignia

GEELONG, VICTORIA 6 PORTS OF CALL

Norwegian Jewel

Seven Seas Navigator Seven Seas Mariner

Regatta

FREEDOM

OCEANIA CRUISES THE FINEST CUISINE AT SEA™

INTIMATE SHIPS

DESTINATION IMMERSION BEST CUISINE AT SEA

NO JACKET & TIE REQUIRED

Oceania Cruises AUNZ


• 55+, semi-retired or retired

• High level of discretionary income

• Live near metro areas

• 82% live in NSW, QLD or VIC


• Well educated and global traveller

• Travel for extended periods e.g .spend 4-6 weeks in Europe. May undertake back-to-back

cruises or longer cruises

• Past cruisers: Holland America Line, Celebrity, Azamara or with luxury cruise lines

• Enjoy cultural events, fine dining, wines and arts

Oceania Cruises AUNZ

• Buying behaviour:

• Majority use travel agents

• Reliance on Q1 and Sep/Oct booking periods

• Destination driven – initial decision is based on travel focus

• Inquisitive – likes to try new immersive options and want to see new destinations

• How to deliver (product)

• The finest cuisine at sea

• Provide options and variety

• Personalised service

• Relaxed and casual ambience

REGENT SEVEN SEAS CRUISES THE MOST INCLUSIVE LUXURY EXPERIENCE™

SEVEN SEAS EXPLORER THE MOST LUXURIOUS SHIP EVER BUILT™

Regent Seven Seas Cruises AUNZ


• 55+, semi-retired or retired

• Very high net worth – high six or seven figures

• Live in wealthy pockets. 79% live in NSW, QLD or VIC


• Well educated and frequent travellers – both on cruises and internationally

• Travel for extended periods e.g .spend 4-6 weeks in Europe. May undertake back-to-back

cruises or longer cruises

• Past cruisers of luxury lines: Silversea, Crystal, Seabourn

• Food & wine lovers, culture & enrichment seekers, appreciate the finer things

Regent Seven Seas Cruises AUNZ

• Buying behaviour

• Reliance on travel agent community

• Loyal

• Book far in advance with a reliance on Q1 and Sep/Oct booking periods

• How to deliver (product)

• Personalised service

• Convenience

• High standards

• Quality dining/cuisine

• Spacious accommodation

• No queues

REGENT SEVEN SEAS

Vision for the future

Vision for the future

• Infrastructure for growth to reach 2m cruisers by 2020

• Political stability & security

• Environmental responsibility

• Continued growth driven by new generations and emerging markets

• Data and analytics to identify and engage consumer audiences

• More ships, more destinations, more choice

• Growth in river and expedition cruising

• More unique differentiation by cruise lines

Steve Odell

Chairman CLIA Australasia &

Senior Vice President and Managing Director Norwegian Cruise Line Holdings, Asia Pacific

Thank you

state of the global cruise industry · norwegian cruise line holdings, asia pacific state of the...

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