From the Floor of Seatrade Cruise Shipping Miami 2010
Upbeat tones at Miami conference as cruise industry flexes new builds and celebrates evolution of the industry.
“We’ve come a long way baby,” said exuberant Rick Sasso, president and CEO of MSC Cruise (USA) and Chairman of the Cruise Line International Association (CLIA) in his ‘2010 State of the Industry’ address to a huge, overflowing crowd.
During the past 30 years, cruising has evolved from ocean liners to ocean playgrounds. Sasso demonstrated this with photos of old cabins, tiny lounges and gyms versus the new shiny and extraordinary cruise ships of today touting penthouse suite, two-story dining rooms and spa pools that rival the finest land facilities. In the last 10 years alone, the industry has delivered 118 purposed-built ships and today CLIA represents 82-passenger riverboats to grand 225,000-ton floating cities. What was once a small boutique industry has grown into a $40 billion business in just the US alone.
Sasso remarked on the industry’s ability to escape adversity better than most, obviously referring to the recent economic downturn. While, many sectors of the tourism industry fluctuate between highs and lows, the cruise industry has experienced a steady 7.4 percent growth over the past 30 years. But, he also said the industry has taken great strides to evolve environmentally and safety practices-from the installation of advanced wastewater systems to recycling to using environmentally friendly paint on ship hulls.
“Where do we go from here?” asked Sasso. “Baby, you ain’t seen nothing yet,” he bellowed while smiling. He summarized the success of the industry in five simple words, “Volume, value, variety, versatility and voice.”
EXECUTIVE PANEL FIVE HEADS OF FIVE MAJOR CRUISE BRANDS GATHER FOR ANNUAL RITUAL—THE STATE OF THE INDUSTRY PANEL—
Stein Kruse, president and CEO of Holland America, Gerald Cahill, president and CEO of Carnival Cruise Lines, Adam Goldstein, president and CEO of Royal Caribbean International, Dan Hanrahan, president and CEO of Celebrity Cruises and Kevin Sheehan, CEO of Norwegian Cruise Lines come together to share the industry’s rebound in the wake of the global recession that devastated yields and pricing in 2009.
Kruse of Holland America said the “unbelievable strength and resolve of the American consumer is driving the growth.”
“Last year we were wondering how to fill our ships, but business came back in the fall, and we expect to see strong growth this year,” said Cahill of Carnival.
“The old confidence is growing, and we see a lot of health in our bookings,” added Sheehan of Norwegian Cruise Line.
“The 2009 season makes 2010 look good,” said Hanranhan of Celebrity Cruises. “It can only get better after last year when people were not spending.”
The panel was excited about the growth of the international market as Europe led the way recording 12 percent increase over 2009, with the UK and Germany leading the way. Passenger totals of 1.5 million and 1 million respectively are expected to double in the next decade. The panel also believes the industry is in an irreversible trend internationally as cruise vessels are deployed throughout Europe and Asia and other far-flung destinations.
Meanwhile, Jonathan Weintraub, CEO and Brent Horwitz, Senior VP and GM of MTN Satellite Communications announced to industry reporters and editors at a luncheon at the exquisite Raleigh Hotel near the convention, its new global digital television solution for the cruise industry.
The launching of MTN Worldwide TV is the industry’s first TV broadcast service delivering six major US and international television networks to cruise passengers anywhere in the world on the high seas.
Cruise passengers are now able to enjoy programming from BBC World News, CNBC, Fox News, MSNBC, Sky News and Sky Sports News in their cabins. Additional programming packages including entertainment and sports channels will be added in the future.
And, on the floor…the Irish contingent got things going early on St. Patrick’s Day with music and dancers, which later followed by lunch and beverages. While the Chilean delegation offered a traditional dance of its country and provided two very important press conferences stating that the cruise industry in Chile is strong and the country is bouncing back from the 8.8 earthquake on February 27th.
From the floor - MarEx