Resorts of all sorts:

Branding helps cruise lines

target new niches ... and keeps

cruise vacations from becoming

just another commodity product

With the new millenium approaching, the cruise industry is one of the few in the shipping world experiencing steady almost predictable growth. According to Cruise Lines International Association (CLIA), industry analysts agree that the North American passenger market will continue growing at a solid eight percent a year in 2000 and beyond. To meet that demand, at least 50 new cruise ships are slated for delivery between now and 2003. That's good news for many Marine Log readers, since the business of keeping floating resorts actually floating provides lucrative business for just about every sector of the marine industry infrastructure. But is it too good to be true, will the cruise bubble burst? What has to be realized is that cruising is not subject to the same economics as most shipping trades. Put simply, cruising is not a commodity. A barrel of oil or a container load of sneakers don't have too many worries about which big, simple ships transport them. Cruise passengers and their travel agents are more picky. How the cruise industry keeps its product from becoming commoditized is through branding. The most obvious example is Carnival Corporation, with products ranging from the Carnival "fun ships" to Cunard's Queen Elizabeth 2. An example of the importance of branding is American Classic Voyages recent decision to purchase the United States Line name to yet more firmly plant an All-American image on the ships it will operate in Hawaii. Something else that helps keep cruising from being commoditized is that cruise lines are not competing against each other so much as against other vacation experiences. A major established player in the vacation business that has decided it needs a chunk of the cruise market is Disney and the two Disney cruise ships are classic examples of branding. Mickey has his stamp all over them! So, who is all this brand marketing being targeted at? CLIA says that current cruisers represent all ages, are evenly divided between men and women, are predominantly married, and have a median household income of $58,800. But CLIA has also noted that those who have never cruised have positive impressions of cruise lines, and that there will soon be new breeds of cruisers hitting the high seas, including "family folks," "want-it-alls," "adventurers," "comfortable spenders," and "cautious travelers' Read more Marine Log Print Highlights Index Marine Log home