As a Source of Passengers and Appealing Cruise Itineraries, Canada's
Importance to Cruise Industry Continues to Grow

New Survey Shows Canadian Travel Agents Optimistic about Cruise Sales in 2010

FORT LAUDERDALE, Dec. 9 /CNW/ - In 2009, over 775,000 Canadians are forecast to take a cruise on Cruise Lines International Association (CLIA) member cruise ships, triple the number from ten years ago and a 9.2 percent increase over 2008. They will represent 25.5 percent of all internationally sourced (non-U.S.) cruise vacationers.

Playing an indispensable and irreplaceable role in driving sales in this increasingly important market and helping vacationers plan with convenience and ease are Canada's travel agents, including over 900 CLIA member agencies, 6.7 percent of total agency members. And they are optimistic that Canada will become an ever stronger player in the global cruise industry in the near future.

"There is no doubt that, as the cruise industry continues to grow and globalize its operations, Canada is playing a bigger and bigger role, offering multiple appealing cruise destinations on both coasts and Canadians from all parts of the country are taking more and more cruises," said Terry Dale, president and CEO of CLIA. "At the same time, the cruise industry is making a significant contribution to the Canadian economy. So it is a win-win situation for everyone, and, among the biggest winners are our travel agent partners."

A strong indication of the importance CLIA places on its partnerships in Canada was the decision to hold the industry's annual conference, cruise3sixty, in Vancouver, June 2-6, 2010, the first time the event has been staged outside of Florida and an important opportunity for Canadian agents to gain information and education, inspect cruise ships and interact with the entire global cruise industry.

Since 1980, the cruise industry, as represented by members of CLIA, has shown an impressive and steady growth despite numerous economic downturns and other adverse conditions and events. The industry continues to invest in growth: in 2009 CLIA lines introduced 14 new ships; in 2010 they will launch another 13. Between 2010 and 2012 the CLIA fleet will grow by 26 vessels, an investment of nearly $15 billion. These ships, including the three largest ever built as well as some of the smallest, showcase the incomparable variety and choice offered to consumers across all price categories and types of itineraries around the world.

As the industry has grown, CLIA member lines have expanded into all parts of the world, notably Europe, South America, Asia and new destinations and itineraries in North America as well. As a result, non-U.S. sourced passengers have been on the rise, accounting for 22.3 percent of total passengers in 2008. In this context, Canada had a capacity of 8.7 million bed days offered in 2009. Canada/Alaska itineraries represented over 7 percent of total CLIA fleet capacity, an increase of 64 percent since 2000. The 1.9 million bed days for Canada/New England cruises represent an increase in capacity of 69 percent in the same time period.

Meanwhile, according to independent analysis of the cruise industry's economic impact, cruise calls in Canada generate more than $2.3 billion (Canadian dollars) in total output in the Canadian economy, including $1.1 billion in direct spending by cruise lines, passengers and crew. The industry generates more than 16,000 jobs paying a total of $642 million in wages and salaries. British Columbia, benefiting from the Alaskan cruise traffic, accounts for two-thirds of the national impact but even interior provinces are impacted as source markets for cruise passengers and providers of services, food and provisions, and cruise-related land tourism packages. In eastern Canada, the ports of Quebec and Atlantic Canada on a combined basis accounted for about $275 million or 12 percent of the cruise industry's impact on the Canadian economy, due to the popularity of Canada-New England cruise vacations.

    
    Canadian Travel Agent Survey
    ----------------------------
    

As the cruise industry's primary distribution channel, travel agents have a unique perspective on the prospects for the future and consumer interests and expectations. For that reason, CLIA surveyed its Canadian agent members in November 2009 to get a better sense of the market. According to Bob Sharak, CLIA's executive vice president, marketing and distribution, the results are highly encouraging.

"Like their American counterparts, and perhaps more so, our Canadian members are bullish on the industry. They like the prospects for the coming year and beyond, they are confident that they can expand the pool of new cruise passengers, and they are preparing themselves for success with training and professional development," he said.

Looking ahead to 2010, the CLIA survey found that 92.5 percent of Canadian agents are optimistic about travel in general and 97.7 percent expressed optimism for selling cruises. And 66.4 percent described themselves as very or extremely optimistic about selling cruises next year, while 53.4 percent were very or extremely optimistic about selling travel in general. More than 82 percent of agents expect increases in cruise sales next year. Almost 70 percent expect those sales to translate into higher cruise revenues. And, in good news to the industry, over 50% of agents believe they will sell to more first-timers in 2010 than 2009.

The survey also helped identify the Canadian cruise market. Couples and families are the most likely customers; "friends and multiple families traveling together" is the fastest growing category of cruise client; contemporary and premium pricing levels are the most popular, and the top ten cruise destinations for Canadians, in order, include the Caribbean, the Mediterranean, Alaska, Europe, European river cruises, the Panama Canal, Hawaii, Mexico, the Baltic region, and South America.

Agents surveyed predicted that the "hot" destinations for 2010 will be the Mediterranean and Greek islands, European river voyages, South America, the Caribbean, Europe, the Baltic, Alaska and Southeast Asia.

Canadian agents also expressed strong commitment to professional development, with 60 percent saying training is very or extremely important. Almost half of agents (47 percent) surveyed are currently enrolled in CLIA Certification programs and 38 percent have achieved a CLIA Certification designation. More than 60 percent have taken CLIA training within the last two years.

What is needed to stimulate more interest in cruising among Canadians? Overwhelmingly, travel agents cited two conditions: a strengthened Canadian economy and continued value pricing of cruises.

For more information on CLIA and the cruise industry, please visit www.cruising.org.

About CLIA

The nonprofit Cruise Lines International Association (CLIA) is North America's largest cruise industry organization. CLIA represents the interests of 25 member lines and participates in the regulatory and policy development process while supporting measures that foster a safe, secure and healthy cruise ship environment. CLIA is also engaged in travel agent training, research and marketing communications to promote the value and desirability of cruise vacations and counts as members 16,000 travel agencies. For more information of CLIA, the cruise industry, and CLIA-member lines and travel agencies, visit www.cruising.org.

    
    Sidebar: Highlights from CLIA's Canadian Travel Agent Survey

    -  Canadian travel agents are generally optimistic about 2010, especially
       about cruise vacation sales, with 92.5 percent describing themselves
       as optimistic about travel overall and 97.7 percent saying they are
       optimistic about selling cruises. And, 66.4 percent describe
       themselves as very/extremely optimistic about selling cruises while
       53.4 percent are very/optimistic about travel in general next year.

    -  A strong majority of agents expect cruise revenues to grow next year:
       68.9 percent predicted moderate to significant increases in revenue in
       2010. To spur those sales, the majority of Canadian agencies intend to
       at least maintain current levels of marketing, with many indicating
       plans to increase efforts in public relations, website development,
       social networking and cruise events.

    -  Canadian travel agents state that, on average, 35 percent of their
       2009 cruise clients were first time cruisers. Over 50 percent believe
       they will increase their percent of new cruiser clients in 2010.

    -  On average, Canadian agents state that nearly 60 percent of their
       leisure sales are cruise vacations. In fact, cruises represent over 70
       percent of leisure sales for 48 percent of those who responded to the
       survey.

    -  Canadian agents sell all types of cruise vacations. When asked to list
       three cruise categories they typically sell, these were the findings:
          -  Contemporary lines - 76.7 percent
          -  Premium lines - 74.7 percent
          -  River/coastal cruises - 50 percent
          -  Niche/destination focused cruises - 38 percent
          -  Luxury cruises - 31.3 percent
          -  Expedition/adventure cruises - 5.3 percent

    -  Identifying the characteristics or demographics of current cruise
       clientele, agents reported that couples top the list of passengers,
       followed by nuclear families (parents and children). In third place
       were friends and multiple families traveling together followed by
       seniors. Segments showing the most growth include friends and multiple
       families traveling together and extended family/multigenerational
       travel.

    -  According to agents, Canadian consumers have the strongest interest
       and perceive the highest value in cruise vacations, followed closely
       by all-inclusive resorts. Agents also said cruise vacations were the
       easiest sale to make.

    -  Looking ahead to 2010, agents predict the strongest interest and
       bookings for cruises to the Caribbean, Mediterranean and Greek
       islands, and Alaska, in that order; "hot" destinations identified by
       agents include European river cruises and the Mediterranean and Greek
       islands.

    -  Canadian cruisers are planning and booking their cruise vacation
       further in advance. CLIA member travel agents in Canada report 2010
       bookings are occurring, on average, 5.6 months in advance versus the
       average 4.4 month booking window in 2009.

    -  Current cruise pricing, according to agents, seems to be stable, with
       some increases in select market segments or destinations; not
       surprisingly, cruise line pricing influences bookings in all
       categories and types of cruising, agents say, with pricing most
       influential for contemporary cruise lines.

    -  Among Canadian agents, 60.9 percent have taken CLIA training within
       the last two years and 47 percent are currently enrolled in
       Certification programs; another 25.6 percent enrolled in CLIA training
       more than two years ago.

    -  CLIA training matters to Canadian agents: 57.5 percent say it is very
       or extremely important, primarily because it provides more industry
       knowledge than any individual agent could accumulate in any other way.

    -  What is needed to stimulate interest in cruising among Canadians?
       Overwhelmingly, travel agents cite two conditions: a strengthened
       Canadian economy (66.4 percent) and continued value pricing of cruises
       (73.1 percent)
    

SOURCE CRUISE LINES INTERNATIONAL ASSOCIATION (CLIA)

For further information: For further information: M. SILVER ASSOCIATES, Dawn Weissman, dawn@msilver-pr.com, (212) 754-6500; CLIA, Lanie Fagan, lfagan@cruising.org, (754) 224-2202

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CRUISE LINES INTERNATIONAL ASSOCIATION (CLIA)

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