4 Cruise Industry News: 2021 China Market Report

CHINA

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Positive Signs for 2021

New Ships

Chinese Market Timeline

Quoted

2021 Preview

Key Brand Overview

Market Capacity

Ships18

Passengers 2,224,0589.4%

Berths40,412

Growth Overview

2015-2027 Market Overview

Operator Capacity

Breakdown

CONTENTSTA

BLE

OF

Costa:

  2020Costa Atlantica: 2,100:  10,500Costa Serena: 3,000:  15,000Costa Venezia: 4,232:  21,160(3 ships/9,332 berths) 46,660

2020 Realized Capacity

Costa: Driving Demand in 2021

Royal Caribbean:

‘Dawn Before Sunrise’

Cruise Industry News: 2021 China Market Report 5

CHINA

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Chinese Port Guide

China Moves to Home-

grown Industry

CO

NTEN

TSTABLE OF

Genting Cruise Lines: Restart in Asia

Astro Ocean: New Entrant

Market Conditions Rebound Agent AgentAgent Agent

price

Chinese BookingTrends

The Chinese market has slowly moved away from the full-ship charter business model, and now relies mainly on a block and group booking system.

Average Booking Window in China30-40 Days

2 | Four to EightCruise lines have gotten away from the chartering model and are now blocking out cabins to between four and eight travel agencies per depar-ture, trying to spread risk among multiple sellers.

Passengers book cruises mainly via travel agents, who buy up blocks of state-rooms. Agents arrange transportation, shore excursions and even embarkation.

1 | Group Bookings

3 | Price ControlNo one wants to give up on price early as agents work together to keep pricing up. At this point, some agents split up their blocks to more agents.

4 | DifferentiationSame cruise, di�erent travel agents. Some agents may specialize in speci�c source mar-kets. Each agent customizes the package – including di�erent perks, whether it be onboard internet, speci�c shore excursions and/or ship transfers.

As the sailing date nears, some cabins go unsold. Another layer of sales agents, known as scalpers, o�er the same cruise for drastically reduced prices at the last minute despite not controlling the inventory. Sales are ripe on WeChat.

5 | Secondary Market

6 | Shore Excursions RevenuePerhaps most important to agents blocking staterooms have been shore excursions. Often taking a hit on the ticket price, revenue is made up with shopping-themed excursions in Japan. Agents either get a fee for sending passengers to speci�c shops, or get a commission on any sales. In some cases, the cruise ticket has served as a loss leader for shop sales.

7 | Price DropNot wanting to lose money, many travel agents will work last-minute deals with scalp-ers, selling cabins at a deeply discounted rate.

Chinese Booking Trends

Big Ports Modernize

Copyright © Free Vector Maps.com

Kai Tak: Hoping For A Strong Restart

Building Blocks

Global Dream

Costa Firenze

Limited Success

Ready to Drydock

Cruise Industry News Quarterly Magazine: Fall 2020 127

Cruise Line Ship Cost(1) Tonnage Capacity Yard Sailing Delivery

2024:Royal Caribbean Unnamed $1,100 200,000 5,000 Meyer Turku TBA Q2

MSC Cruises Unnamed $600 64,000 1,000 Fincantieri TBA Spring

Celebrity Unnamed $900 129,500 2,900 Chantiers de l’Atlantique TBA Fall

MSC Cruises Unnamed $1,200 205,700 5,400 Chantiers de l’Atlantique TBA TBA

Norwegian Unnamed $850 140,000 3,300 Fincantieri TBA TBA

Carnival China Unnamed $750 135,000 5,000 CSSC China TBA

Viking Ocean Unnamed $400 47,000 930 Fincantieri World TBA

TUI Cruises Unnamed $850 161,000 4,000 Fincantieri TBA TBA

Ocean Residences Njord $650 80,000 300 DIV World TBA

2025:Royal Caribbean Unnamed $1,100 200,000 5,000 Meyer Turku TBA Spring

MSC Cruises Unnamed $600 64,000 1,000 Fincantieri TBA Spring

Princess Unnamed $1,000 175,000 4,300 Fincantieri TBA Spring

MSC Cruises Unnamed $1,200 205,700 5,400 Chantiers de l’Atlantique TBA TBA

Norwegian Unnamed $850 140,000 3,300 Fincantieri TBA TBA

Viking Ocean Unnamed $400 47,000 930 Fincantieri World TBA

Viking Ocean Unnamed $400 47,000 930 Fincantieri World TBA

Oceania Unnamed $660 67,000 1,200 Fincantieri TBA TBA

2026:MSC Cruises Unnamed $600 64,000 1,000 Fincantieri TBA Spring

Viking Ocean Unnamed $400 47,000 930 Fincantieri World TBA

Viking Ocean Unnamed $400 47,000 930 Fincantieri World TBA

TUI Cruises Unnamed $850 161,000 4,000 Fincantieri TBA TBA

Norwegian Unnamed $850 140,000 3,300 Fincantieri TBA TBA

2027:Viking Ocean Unnamed $400 47,000 930 Fincantieri World TBA

Norwegian Unnamed $850 140,000 3,300 Fincantieri TBA TBA

MSC Cruises Unnamed $1,200 205,700 5,400 Chantiers de l’Atlantique TBA TBA

COASTAL SHIPS:✔ American Jazz $80 5,148 195 Chesapeake U.S. 2020

Havila Capella $200 15,812 468 Tersan Norway 2021

Havila Castor $200 15,812 468 Tersan Norway 2021

American Melody $80 5,148 195 Chesapeake U.S. 2021

American Unnamed $80 5,148 195 Chesapeake U.S. 2021

Havila Polaris $200 15,812 468 Tersan Norway Q4 2021

Havila Pollux $200 15,812 468 Tersan Norway Q4 2021

Viking Mississippi $150 1,000 386 Edison Chouest U.S. 2022

ADVERTISER INDEX

Global Orderbook

3-Point Logistics...............................................................115AB-InBev......................................................................................2Antti Marine ........................................................................109Apollo ...........................................................................................71Bureau Veritas ......................................................................51Coca-Cola .................................................................Cover 4Charleston ...............................................................................91Danish Decoration ........................................................... 37DeCurtis .....................................................................................17Detyens ..................................................................................... 37Dianthus ....................................................................................47Dimeq .........................................................................................39Dominica ...................................................................................91

Everglades ..................................................................................7Fincantieri Interiors .......................................................... 93Fincantieri Si .........................................................................39Fincantieri .................................................................................15Fugro ............................................................................................79Galveston ..................................................................................87Gangwon-do Maritime Tourism ............................. 45GDS ............................................................................................. 33Harland Wolff .......................................................................89Headhunter ...........................................................................119International Registries ...............................................119Kai Tak ....................................................................................... 43MagicMan ............................................................................... 111

Mapei ...........................................................................................19MarineXchange ....................................................................11MHA ................................................................................................1Naval Rocha ...........................................................................81Quantum Stabilizers ........................................................ 35Resco ...........................................................................................21Scanbox .....................................................................................71Somec .........................................................................................13SunStone .....................................................................Cover 2Tillberg Design of Sweden ............................................5Tomas Tillberg Design. ......................................Cover 3Yeosu ...........................................................................................49

Orderbook