A record four million Europeans enjoyed cruise holidays last year according to the latest statistics unveiled by the European Cruise Council (ECC) in Brussels on April 25. The ECC 2007 “Markets Report” shows how rapidly cruise holidays are growing in popularity for European travelers. Just five years ago only 2.6 million Europeans took a cruise holiday. In 2007 the figure rose to a record high of 4 million.
Sixty per cent of Europeans chose to travel in the Mediterranean and Atlantic Islands, 24 per cent cruised in the Caribbean and 16 percent cruised in Northern Europe. David Dingle, chairman of the ECC and Chief Executive Officer of Carnival UK announced the latest trends, pointing out that the popularity of cruising for European holidaymakers is growing faster than anyone in the industry envisaged. “The ECC had predicted that we would hit 4 million cruise passengers from Europe by 2010. We have beaten that target two years early with impressive growth across the region - Spain has seen cruising grow by a third and Italian cruise passengers have increased by a quarter. There is no doubt that Europe is  the new center of gravity for the cruise industry and we’re seeing increasing numbers of cruise lines basing ships in the region, which will encourage even more Europeans to cruise in future.”
The top five source markets for cruise passengers in Europe in 2007 are:

The UK
In 2007, the UK cruise market grew by 11% to exceed 1.3 million passengers. Ex-UK port passengers (including line voyages) increased by 4% to 467,000 passengers while the number of fly cruise passengers increased 15% to 870,000 passengers.
The continued growth in 2007 can be attributed to a number of factors including the increase in capacity. The introduction of ex-UK Royal Caribbean International’s Navigator of the Seas cruises and fly cruises on Thomson Cruises’ Calypso and Ocean Village Two accounted for much of the capacity increases.
The market leader is P&O Cruises and the top three cruise brands account for 41% of the market.
The 2008 forecasts indicate continued growth, with anticipated numbers of cruisers reaching 1.5 million, a 12% rise on 2007. The main driver for 2008 growth is capacity that will be brought in by a range of new ships targeting the UK market, including P&O Cruises’ Ventura, the largest ship ever to be built specifically for the UK market, Cunard Line’s Queen Victoria and the Balmoral from Fred. Olsen Cruise Lines. Royal Caribbean International is set to increase its fly-cruise program, whilst NCL and Carnival Cruise Lines will start operating an ex-UK program and MSC Cruises increases its ex-UK cruises.

UK - Open Sea Cruise Passengers (000s) by main area, 2003-2007

Produced for the Passenger Shipping Association by IRN Research (www.irn-reseach.com)
* Passenger figures from Paradise Cruises and Salamis Cruises (Cyprus) included for the first time from 1998.
< Included in other areas
Produce for the Passenger Shipping Association by IRN Research (www.irn-reseach.com)

Germany
In 2007, the German cruise market had a relatively low growth rate of 8% compared with the other major European markets but its 763,000 passengers represented 19% of the European market.
The German market is dominated by German-speaking brands that include the market leader AIDA Cruises, Delphin Kreuzfahrten, Hansa Kreuzfahrten, Hapag-Lloyd Kreuzfahrten,
Peter Deilmann Reederei, Phoenix Reisen, Plantours & Partner, Sea Cloud Cruises and Transocean Tours. However, Hapag-Lloyd, Peter Deilmann and Sea Cloud Cruises also market outside the German speaking countries of Germany, Austria, Switzerland, the Netherlands and Luxembourg. Aida accounts for approximately 35% of the market.
The Mediterranean and Atlantic Islands accounts for 50% of the market while Northern Europe accounts 28%.
Despite the relatively low growth of the German market in 2007, the German market is expected to grow rapidly in the next few years. Aida took delivery of the first of its 68,500 ton 'club ships' in 2007 with three more for delivery between 2008 and 2010 to serve the German-speaking market, which expects to reach one million passengers by 2010. A joint venture between TUI cruises and Royal Caribbean Cruises Ltd. will launch TUI Cruises in 2009.

Italy
Italy is the third largest cruise market in Europe after the UK and Germany. Italy added 123,000 cruise passengers in 2007 to reach 640,000 passengers, a 24% increase on 2006. 81% of the Italian market cruises the Mediterranean and the Atlantic Islands and only 7% to Northern Europe.
As the Italian cruise market is dominated by two companies, Costa Crociere s.p.a. and MSC, who control 96% of the market, the growth in the market is driven by the developments of these two companies. Costa Crociere is the biggest European cruise line with 12 ships and a capacity of 23,200 guests in double occupancy cabins. Another five ships are currently on order and will be delivered by 2012. The Costa fleet will then feature a total of 17 ships and a total passenger capacity of 36,800 (in double occupancy cabins). In 2007, Costa Crociere reached the objective of 1.1 million total passengers in one year, a historical record for the company and for the European Cruise Industry. MSC’s expansion plans are also impressive. At the end of 2008, MSC will have a fleet of 10 vessels with 15,858 lower berth capacity at the end of 2008, increasing to 12 ships in 2010.

Spain
The Spanish market increased by nearly one third in 2007 to reach 518,000 passengers, an increase of 127,000 passengers on 2006, the highest increase of the European markets with the exception of the UK. Nearly three quarters of Spanish cruisers (74%) took to the Mediterranean and the Atlantic Islands while 18% of passengers headed for Northern Europe.
The market leader is Pullmantur, acquired by Royal Caribbean Cruises in 2006. The top three brands Pullmantur, Costa and Iberocruceros (which is a part of Costa s.p.a.) accounted for 76% of the market in 2007. Following the acquisition by Royal Caribbean, the Pullmantur fleet was changed. In 2007, Blue Dream and Blue Moon were transferred to Azamara Cruises, while MS Oceania II (for 2007) and Celebrity’s MS Zenith joined Pullmantur. In 2008, Empress of the Seas and Sovereign of the Seas from Royal Caribbean International will join the Pullmantur fleet as will MS Ocean Dream, but the Pacific and Holiday Dream will leave the fleet. Iberocruceros, a new brand of Costa Crociere, was created in September 2007, operating exclusively in the Spanish market, has 2 ships, the Grand Mistral and the Grand Voyager but a third ship, the Grand Celebration, will begin operating in spring 2008.

France
The French market increased by 16% in 2007 to reach 280,000 passengers equivalent to 7% of the European market. Unlike the larger markets in Europe, the market leader is not a national cruise brand. The market leader is Costa and together with MSC and Club Mediterranean these three brands accounted for nearly 70% of the market in 2007. Costa and MSC increased capacity for the expansion of their home market (Italy) as well as the rest of Europe and this is a driving force for the expansion of the French market. In May 2008, CDF Croisières de France, a French cruise brand aimed exclusively at the french-speaking markets with a French speaking staff will start cruises out of Marseille.
Nearly two thirds (66%) of the French market cruises the Mediterranean and the Atlantic Islands and 11% cruise to Northern Europe.

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This report was compiled by IRN Research, a travel and tourism market research consultancy. Website: www.irn-research.com . For the full report, visit http://www.irn-research.com/index.php?/main/sector_specific_services/reports and scroll down to European Cruise Council Statistics 2007 to download the report.