Deep Sea Passenger Transportation
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 80 deep sea passenger transportation service providers consist primarily of cruise lines that move passengers to and from foreign ports in a leisure setting. The major cruise operators offer a broad range of travel experiences through various brands that can be classified broadly as mass market/contemporary, premium, and luxury. Companies own and manage fleets of cruise ships that can carry anywhere from a few hundred to more than 7,000 passengers.
Dependence on Economic Conditions
Demand for cruises is affected by international, national, and local economic conditions.
High Capital Intensity
The capital-intensive nature of the cruise business makes the industry heavily dependent on debt.
Industry size & Structure
Prepandemic, the average cruise line operated out of a single location, employed about 270 US workers, and generated just over $460 million annually. In 2020, the CDC shut down the US cruise industry in March of that year; the average cruise line operated out of a single location, employed about 200 US workers, and generated almost $120 million. In 2022, the average cruise line employed 134 people and generated $275 billion.
- Prepandemic, the US cruise industry consisted of about 55 firms that employed over 15,000 US workers and generated about $26 billion annually. In 2021, industry revenue dropped to about $5.5 billion and employment fell to 10,700 US workers. In 2022, industry revenue increased to $22 billion.
- The industry is highly concentrated; the top four companies account for about 97% of industry revenue.
- Large companies include Carnival Corporation, Royal Caribbean Cruises, Norwegian Cruise Lines, and Disney. Carnival is the world’s largest cruise operator.
Industry Forecast
Deep Sea Passenger Transportation Industry Growth
Recent Developments
Jul 18, 2024 - Employment Increases
- Deep sea passenger transportation industry employment increased to a 10-year high during the first quarter of 2024, according to the US Bureau of Labor Statistics. Deep sea passenger transportation industry revenue increased 8.7% year over year but decreased 16.7% quarter over quarter during Q4 2023 to $12,518 million, according to the US Census Bureau.
- The cruise industry has markedly picked up speed after taking a major hit during the COVID-19 pandemic, according to J.P. Morgan. “An important point underscoring our more constructive view of the cruise industry post-pandemic is market share gains from the larger $1.9 trillion global vacation market and accelerated new-to-cruise customer acquisition,” said Matt Boss, Head of Leisure and Retailing (Department Stores & Specialty Softlines) at J.P. Morgan. “Demand remains robust, with not a single historical lead indicator in the business, notably booking curve and on-board spend, signaling any softening.”
- Cruise line operators have gotten better at selling onboard, high-margin items such as drinks packages and shore excursions, according to The Wall Street Journal. Such items are typically responsible for more than a third of revenue, often before the ship even leaves port. Royal Caribbean CEO Jason Liberty said in late February that his company had 40% more pre-cruise revenue booked in the first two months of 2024 than during the same period in 2023. Cruise lines are also increasing sales while cutting costs by directing ships to their own private ports or islands.
- New ship deliveries are increasing and 2025 will be a strong year, according to Cruise Industry News’ Global Cruise Ship Orderbook Report. A total of 19 ocean-going vessels and two coastal ships are set to be delivered in 2025. The new builds have a combined value of $14 billion and are set to add over 47,000 extra berths to the global market. The ships are 106,450 tons on average, with an average capacity of 2,456 guests.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.