TSM3104 Cruise Industry in Global Market: Problems and Solutions

This report provides an overview of the global cruise tourism industry, highlighting its growth, revenue, and employment figures. It identifies untapped global markets and discusses demand-side bottlenecks such as high pricing and population skepticism, as well as supply-side bottlenecks like inadequate infrastructure and a lack of skilled personnel. The report offers recommendations for attracting middle-income millennials, introducing diverse onboard activities, digitalizing booking facilities, and implementing supportive government policies. It references sources on cruising enthusiasm, tourism sector investment, cruise ship itineraries, and passenger statistics.

Cruising Industry in
International Market
Problems, Bottlenecks and Probable Solutions

Global Cruise Tourism: Overview
 Global cruise passengers increased to 25.8 million by 2017
 The revenue of the global cruise tourism industry is more than 118
million
 Cruising industry employs more than 1,000,000 people worldwide
 Provides wage worth more than $40 billion globally
 One of the fastest growing wings of the global tourism industry

Untapped Global Market
Figure 1: Number of cruise passengers by source countries (In millions)
(Source: Statista.com, 2018)
• Huge share of population of the already cruise enthusiast countries still not participating
• Many new emerging economies developing in the current period
• Very less share of the population of these countries opt for cruise tourism

Hurdles and Issues in Cruising
Industry
Demand side bottlenecks
 High pricing issues
 Population of many countries not ready for this kind of tourism
 Population sceptic in the aspects of spending money for long duration
space constricted cruise travels
 Outbound tourism mostly means sightseeing
 Leisure tourism is not understood yet by a major share of population

Hurdles and Issues in Cruising
Industry
Supply side bottlenecks
 Inadequate and poorly developed cruise chain industry
 Absence of proper policy and strategic frameworks on part of the
government of most of the countries to support the growing industry
 High barriers to entry due to huge initial huge fixed costs
 Lack of proper trained and targeted skilled personnel in all the
aspects of the operating framework of the industry
 All inclusive cruise holiday packages

Recommendations
 More economic packages to attract the middle income working and adventure seeking
millennials
 Small duration budget trips along with luxurious long duration ones
 Introduction of more onboard entertainment and activities
 More off-shore activities for adventure loving passengers
 Digitalization of websites and tickets booking facilities
 Facilities for the customers to customize departure points, off-shore excursions and
entertainment facilities
 Government policies and strategies to support development of the industry

References
Accenture.com. (2018). Cruising Enthusiasm and the Untapped Market for Cruise
Companies | Accenture. Retrieved from https://www.accenture.com/in-en/insight-
cruise-research
Blogs.worldbank.org. (2018). Should we be promoting tourism sector investment?.
Retrieved from http://blogs.worldbank.org/psd/should-we-be-promoting-tourism-
sector-investment
Lee, S., & Ramdeen, C. (2013). Cruise ship itineraries and occupancy
rates. Tourism Management, 34, 236-237.
Statista.com. (2018). Number of cruise passengers by source country 2016 |
Statistic. Statista. Retrieved 6 May 2018, from
https://www.statista.com/statistics/287111/cruise-passengers-by-source-country/

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