Worldwide Business Information and Market Reports
ISBN 1-85765-240-1
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The UK passenger shipping industry, described in
this report, participates in open-sea passenger transport by ferry or cruise
vessel. Some long-sea ferry routes and some short cruising itineraries offer a
similar product and occasionally use the same vessels. However, the passenger
shipping industry consists of two distinct markets -- ferries and cruises.
There are few companies represented in both segments of the market, although
the cruises and ferries division of the P&O Group is the UK market leader
for ferries and cruises. Nevertheless, separate, semi-autonomous companies
undertake the cruise and ferry activities of the P&O Group.
In
1992, the ferry industry carried nearly 49.4 million passengers on major routes
into and out of major UK ports. This was 2.6 percent more than the previous year. The
increase in UK-Continent traffic was the main reason behind the overall
increase. The UK-Continent sector of the ferry market increased by 4.9 percent in
1992, to nearly 29.7 million passengers, compared with a 0.7 percent increase in
UK-Eire traffic to nearly 3.2 million passengers. Traffic on major UK domestic
routes fell by 0.8 percent to slightly less than 16.5 million passengers.
With
the exception of UK domestic routes in 1992, all sectors of the ferry industry
have grown every year since 1988. This was despite the recession and the Gulf
War, which affected most of the travel industry over the period. Between 1988
and 1992, passengers on Continental routes increased by 30.0 percent; on Irish
Republic routes by 27.3 percent; and on major domestic routes by 11.1 percent. Sealink Stena
is the only company represented in all three sectors of the UK ferry market,
yet P&O European Ferries is largest in terms of total passengers carried.
On international routes, P&O European Ferries and Stena Sealink command
68.6 percent of the market in terms of passengers carried, followed by Brittany
Ferries with approximately an 8 percent share.
In 1992, around 220,000 UK
residents took a cruise on the open seas, making the UK the second largest
cruising nation in the world, after the US. This was 18.7 percent passengers more than
the previous year. The rise in the number of fly-cruises to the Caribbean and
the Mediterranean was the main reason for the increase. There were 11,000
additional Caribbean cruisers, to total around 84,400, and 15,000 more
Mediterranean fly-cruisers, to total 30,400 in the year. The UK cruise market
grew by 50 percent between 1988 and 1992. Over the period, fly-cruising increased its
share of the market from 56 percent to 65 percent.
Cruise market shares fluctuate due
to the positioning of ships. The Ex-UK market was stable at approximately
50,000 passengers during the 1980s. However, the market increased significantly
in 1991, to more than 65,000 passengers, due primarily to P&O's
introduction of a second ship on the Ex-UK routes. On Ex-UK routes P&O
Cruises has approximately 80 percent of the market.
The underlying trends in
international travel suggest that demand growth in the cruise and ferry markets
will continue, although the opening of the Channel Tunnel in 1994 will have an
impact on the short-sea crossing market to France. Key Note estimates that,
despite a period of instability and loss of share to the Eurotunnel in 1994 and
1995, the UK-Continent ferry market will increase by 17 percent between 1992 and 1997.
Based on the capacity increases planned over the next few years, growth in the
cruising market is likely to be greater than that of the ferry market. Key Note
forecasts that the cruising market will double in size between 1992 and 1997 to
443,000 passengers.
Text © 1993 Key Note
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Last updated by Duncan Nottage 5th March 1999