April, 2013 – This article from Seatrade Insider discusses that intentions to cruise during the next 12 months has fallen to a record low among the affluent. (http://www.seatrade-insider.com/news/news-headlines/study-finds-affluent-less-likely-to-cruise-during-next-12-months.html?nspPage=2)
Plans to cruise during the next 12 months fell to a record low 11% of the respondents in a recent survey of the wealthiest 10% of US households that account for about half of all consumer spending.
The American Affluence Research Center (AARC) said the affluent will continue to be an important source of business for the premium and contemporary cruise lines, as well as the luxury lines.
At 11% of a population of over 11m affluent households, an estimated 1.3m households (or 2.6m total cruisers) will cruise over the next 12 months, AARC said. Another 4% of the affluent, almost 1m potential cruisers, indicated they had not yet decided about a cruise.
This weakness in future cruise plans is consistent with reports of softness in wave season bookings following the negative media coverage of the Carnival Triumph incident, AARC president Ron Kurtz said. If the affluent have short memories of this event, as they often do, he added, cruise plans could strengthen, especially if enticed by attractive pricing.
The American Affluence Research Center has been conducting its twice yearly affluent market tracking studies since 2002. The intention to cruise has been as high as 22% (fall 2007 survey) and has typically ranged from 15% to 19% since the inception of the surveys. The new survey is the basis for the report ‘Affluent Market Tracking Study #23,’ just published.
The latest survey is based on 463 male and female participants who have an average annual household income of $309,000, an average primary residence value of $1.2m, an average net worth of $3.1m and average investable assets of $1.8m.