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US Cruise Liner Sets Sail for China

The US-based cruise line views great possibility in the Asian sphere.

Apr 13, 2016 | By LUXUO

China’s population of 1.3 billion seems to hold great promise for the US-based cruise liner Norwegian Cruise Line Holdings (NCL), who announced Tuesday they were to venture into China next year with a ship tailor-made for the market there. The Norwegian Joy plans to go into service in March 2017, where it will be based at Shanghai and Tianjin ports, and provide services geared towards Chinese tastes like food options, casinos, mahjong rooms, as well as duty free shopping. The 20-deck liner will have a capacity of 3,900 passengers and joins 12 other liners that have homeports in China, nine of them foreign-owned

The country’s burgeoning middle class spells a large potential for rising demand, noted Steve Odell, NCL senior vice president and managing director for the Asia Pacific. Data from the Cruise Lines International Association reported that China accounted for about 50 percent of the cruise trips within Asia that same year. Cruise operators are eager to grab a slice of the Chinese market, which could grow to nearly $10 billion in cruise package sales by 2018 from around $6.8 billion in 2013.

Odell has plans running already, with an office open in Singapore for the Southeast Asian market. “If you think of things on the macro scale, there’s a lot of confidence that (ships) going to China (are) going to get filled up. What will happen probably is that there’ll be a lot more pressure on price than before, but that is normal supply and demand economics,” he said. Further data showed that about 2.2 million, or 10 percent, of the 23 million passengers who made cruise trips worldwide in 2014 came from Asia, with this figure only set to rise.

Odell notes that they’re “still in the… infancy of developing a cruise market in China”. Hopefully, this development will lead in to further and more interesting developments for the Asian industry.


 
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