MidBritain and Cruises
Introduction
A holiday life on the ocean wave seems to be gaining popularity worldwide – but nowhere more so than in the UK . The cruise sector has grown strongly over the past 10 years (32% in the last 5 years alone compared to 16% for overseas holidays as whole) and is set to increase further. There are 1.3 million cruises bookings per year with an estimated worth of over 1.5 billion .
Britons remain Europe’s most enthusiastic cruise fans, accounting for one third of all Europe-originating cruise passengers. Germans account for 20% of the market, followed by the Italians (16%), the Spanish (12%) and the French (7%). Island-hopping Greeks make up just 3% of the total market.
Mediterranean cruises are still the most popular with UK travellers, making up 35% of the market. Caribbean cruise numbers fell last year, although the region still accounts for 20% of the UK-originating market. The big growth has been in Northern European cruises – the number of fjord-spotters has risen almost five-fold in the past ten years, and Northern Europe now accounts for an 18% market share.
So how true is the pre-conception that cruise ships are floating retirement homes? Not according to the Future Foundation – today’s 50-somethings are wealthier, better travelled and healthier than ever enjoying higher levels of disposable income than ever before. It seems that instead of pipe and slippers, more 50-somethings are opting for a whirl of socialising, jet-setting, fashion and fitness.
MidBritain on Cruises
63% of cruise holidaymakers are MidBritons – this equates to 645,000 people who have taken a cruise on their last or last but one holiday. They are a group worth talking to as they can be influenced. 60% of MidBritons are influenced to book their holiday by advertisements.
And they have the money to spend - MidBritons who have been on a cruise in the last year are 61% more likely than average to have a total personal income of over £50,000.
MidBritain’s worth to Cruise Operators
The average cost of the last holiday for a MidBriton is £905, compared to non-MidBriton at £832. On average MidBritons spend over twice as much as the average on a cruise:- an average of £1,887. MidBritons (whose last holiday was a cruise) total expenditure amounted to £721 million.
The MidBritain Opportunity
Cruises are the ultimate in package holidays, every activity is provided for; restaurants, entertainment, sightseeing etc. Is there potential to target package holidaymakers who may be receptive to taking a cruise holiday as a step up from their package holiday?
If 93% of cruises are taken by over 35 year olds and 71% package holidaymakers are over 35 years old – the suggestion is that those that take package holidays could be converted to take cruises as both of these types of holiday appeal to this age group.
And this potential new target audience overlaps with MidBritain.
There are 4.5 million MidBritons (aged 35 and over) who took a package holiday for their last holiday. 30% of these read the last available issue of the Daily Mail or The Mail on Sunday. If converted, these MidBritons alone could be worth £2.4 billion to cruise companies.
Sources: Mintel 2006/2007, Future Foundation, TGI GB 2007 Q2 (Jan 06-Dec 06)
