London, UK (PRWEB) September 26, 2012
The Sea & Coastal Passenger Water Transport industry is diverse, offering services ranging from ferry services, to cruise ship voyages and fishing charters. The industry is heavily involved with tourism. It has suffered through some very tough years as the world economy became mired in problems from late 2007 and travellers cancelled discretionary spending. According to IBISWorld industry analyst Caroline Finch, “the cruise section of the industry is the exception, which has continued to grow by marketing value-vacations such as all-inclusive cruises”. Industry revenue is estimated to fall from £3.44 billion in 2007-08 to £2.73 billion in 2012-13, a compound annual decrease of 4.5%. This decline is forecast to continue in the current year, as revenue falls by 3.7%. Job losses have resulted from the poor revenue performance, as companies have attempted to reduce their costs to keep their heads above water. Innovation in products and services to try and grow new markets has been most prominent in the cruise industry.
In addition to economic conditions, competition from substitutes has affected different industry segments in different ways. Finch adds, “ferry services in particular are under siege from intense price competition from air and rail competitors on major routes”. This intensity is expected to continue into the coming years. In addition, regulators are paying increasing attention to the industry's emissions of carbon and sulphur. The industry is likely to face increasing purchase costs from fuel regulation in the coming years. Such costs are expected to make some routes uneconomic and decrease the scope of industry activities. Growth is only projected for the cruise segment, however it is expected that declines in other areas will offset this. Over the next five years to 2017-18, industry revenue is forecast to continue to decrease.
While the Sea & Coastal Passenger Water Transport industry contains some large-scale operators, the scattered geography of the services provided and the wide variety of niche services offered mean that market share concentration in the industry is not high. The four largest companies in the industry account for about 60.6% of industry revenue. The downturn in tourist activity amid the global financial crisis drove some small companies out of the industry, and created the likelihood that industry concentration will increase in the near term due to mergers and acquisitions. Major companies include Carnival, P&O Ferries, Magical Cruise Company, David MacBrayne Limited, Stena Line Limited and Fred.Olsen Cruise Lines.
For more information on the Sea & Coastal Passenger Water Transport industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Operators in this industry are involved in the transport of passengers (as opposed to cargo) on vessels designed for sea or coastal waters. This can be for commuter purposes, leisure or travel. Transport of passengers on rivers within the United Kingdom is classified as a separate industry to this one.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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