Cruise Travel Motivations and Passenger Perceptions of Destination

1. Cruise Travel Motivations and Passenger Perceptions of Destination Dr. Lincoln J. Whyte April 20, 2018

2. Presentation Outline • Research Overview • Cruise Industry Overview • Implications and Future Outlook for The Alaska/ Pacific Northwest Region • Conclusions and Discussion

3. Research Overview Travel Motivations and Passenger Perceptions of Destination

4. Research Goals • Destination image • Co-destination • Factors influencing the decision to cruise • Determine the relative importance of onboard vs onshore attributes • Explore the push-pull relationship

5. 3-Stage Study • Stage 1: Destination Image; Measurement Scale Development • Stage 2: Scale Refinement • Stage 3: Push-Pull Relationship; Onboard-Onshore Relationship

6. Onboard vs. Onshore Attributes • Indirect: Onboard > Onshore • Direct: Onboard > Onshore

7. Factors Influencing Onboard/ Onshore Importance • Destinations • Itineraries • First-time vs repeat visits

8. Potential Market Segments • Onboard-Onshore Preference • Push-Pull Motivation • Canonical variates – 2 groups • Regression combinations – 4 groups • Cruise Experience/ Cruise Career Ladder (future research)

9. Implications and Future Outlook for The Alaska/ Pacific Northwest Region • Onboard-Onshore preference groups • Ease of access, mobility issues • Current research suggests increased importance of being able to drive to home ports • Need increase in itineraries leaving from ports other than Seattle/ Vancouver • Cruise Length • Onboard-Onshore connection • Rich and exciting history of Alaska and the WC needs to be continually promoted (onboard and onshore)

10. Current & Future Outlook of the Cruise Industry Alaska and the west coast

11. Steady Global Passenger Growth – Capacity Issues 4.84% Avg. Annual Growth (2009-2018) *predicted

12. Shifting Markets • Traditional cruise regions • Caribbean, Mexico, Bahamas, Alaska • Departure from US/ Canadian ports • Mediterranean • Traditional source of cruise passengers • North America (mainly US) • Emerging markets (regions & source of passengers) • Europe, Asia, Australia & South Pacific, South America

13. Growth in Emerging Cruise Regions Emerging Markets

14. No Longer Just North Americans

15. Changing Passenger Demographics • Nationalities and ethnicities • Younger cruisers, children, multi-gen • Income • 2015: avg. AHHI $114k • 2018:avg. AHHI <$80k • Cultural customs & expectations, marketing, communications, dining & menu options, entertainment, technology, destinations, shore excursions

16. Relevant Recent Industry Trends • Travelers warm to chilly destinations • Smart Travel Technology • Sustainability at Sea • Drivable port locations in favor • Demand for expedition cruises • Culturally Customized • Millennials/ younger generations

17. Bursting the Tourist Bubble • Cruise vacations have been described as ‘social cocoons’ (Vogel, 2009) or as operating inside of a ‘tourist bubble’ (Weaver, 2005) • The co-destination of the ship with the ports of call needs to be further developed. • Currently the onboard experience is being transferred to the shore via private islands/ beaches, similar shops at many cruise ports worldwide • More can be done in the way of integrating the unique onshore aspects of the local ports of call with the onboard experience—an experience that could otherwise take place anywhere on the ocean • Limitations • Limited time spent ashore, relatively short distances travelled from the ship (also a factor of time constraints), the inundation of cruise passengers into smaller ports, and the commercialized nature of mass cruise tourism providing an inauthentic experience • Possibilities (some already occurring) • Technology (e.g., virtual and augmented reality), smaller ships, scheduling at smaller ports, overnight stops, hop-on-hop-off, onboard information (e.g., seminars, presentations, workshops, performances)

18. Thank You!Questions? Comments? Dr. Lincoln J. Whyte Lwhyte@Okanagan.bc.ca