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Marine Log

November 3, 2006

Cruise demand remains strong

Consumer demand for cruise vacations continued strong in the second quarter of 2006 with 2.97 million passengers carried, according to the Cruise Lines International Association (CLIA). This was an increase of 11.67 percent over the same period from one year ago, when 2.66 million people cruised.

Of the total 2.97 million guests carried by CLIA member lines, 2.5 million were sourced from North America and 466,000 originated from international source markets.

CLIA's 20 member lines represent nearly 98 percent of the cruise capacity marketed in North America.

In addition to the growing passenger totals, CLIA cruise lines also posted a collective 103.2 percent occupancy factor in the second quarter of 2006 compared with 99 percent for the same period in 2005.

For the first six months of 2006, CLIA's member-line fleets carried 5.76 million guests, an 8.73 percent increase over the 5.3 million guests carried during the same period in 2005. North American guests for the period totaled 4.94 million, up 4.52 percent over the 4.73 million carried during the first six months of 2005.

CLIA's second-quarter passenger carrying report also found:

Itineraries of 1 to 5 days accounted for a 34.2 percent share of the cruise market; itineraries of 6 to 8 days accounted for 53.2 percent; 9- to 17-day itineraries accounted for 12 percent; and itineraries of 18 days or longer accounted for 0.6 percent of the market.

The average length of a cruise in the first two quarters was 6.81 days versus 6.78 days for the same period in 2005.

"All indicators point to another stellar year for the cruise industry. The conviction CLIA cruise lines have in the future may best be illustrated in the $14.7 billion that they are investing in 25 new ships through 2010," said Terry L. Dale, president and CEO of CLIA (www.cruising.org). "The cruise industry's attention to shipboard innovation, service and value has not gone unnoticed by the traveling public - a fact that is clearly evidenced in the significant increase in guests choosing to cruise from year to year."

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