One of the fastest growing leisure industry sectors, the cruise industry faces many challenges. While supply continues to grow at double-digit levels, demand struggles to keep pace. Given the demands on infrastructure and the risk of an eroding on-shore experience, fewer ports are in a position to accommodate the cruise lines as supply grows. At the same time, the public sector's scrutiny of industry practices related to the environment, taxation, security, safety and labor mounts. Despite these challenges, many cruise lines report record levels of profitability.
To help our clients meet these and other challenges, PwC teams provide advisory services to cruise companies, industry associations, governments, destinations, prospective investors and lenders.
If this is your situation
- Your organization wants to study the competitive market environment for cruise ships in a specific region.
- You need to better understand trends in customer preferences for on-board services, shore excursions and destination itineraries.
- Your organization needs to evaluate the implementation of a new cruise itinerary.
- You need an independent assessment of a business plan for a cruise ship venture.
- You need independent business advice during sale, purchase or management contract negotiations with a cruise entity.
- Your organization plans to evaluate the economic impact of the cruise activity on a defined market area.
How PwC can help you
PwC has a team of dedicated professionals with cruise operations, finance and technology experience. Our relationships with the major cruise line companies, combined with the experience of our specialists and the resources of our renowned Hospitality & Leisure practice, provide unparalleled industry services for our clients.
Our cruise services include:
- Supply and demand analysis
Our professionals develop a census of cruise vessels and identify new ship deliveries for the industry as a whole or various tiers, such as the contemporary, premium or luxury segments; address the size and type of cabins, including those with ocean views and private balconies, ancillary amenities and other facility considerations; analyze historical cruise demand; and estimate future demand.
We develop surveys to gather data regarding customer preferences and satisfaction, specific cruise performance, itineraries, ports of call, shore excursions and other passenger experiences.
- Facility programming
Our specialists analyze a vessel’s facility program, including number and mix of cabins, and food and beverage outlets and amenities, as well as study potential pricing strategies, to position a ship for value enhancement.
- Financial analysis
Our teams prepare prospective financial analyses for a proposed or existing cruise entity. These analyses also include assisting entities with joint venture agreements, management contract negotiations, the overall capital structure with lenders and investment bank negotiations. Other services include tax consulting and valuation expertise.
- Economic impact studies
Our professionals estimate the economic consequences associated with the cruise industry for specific destinations, including incremental tax revenues, capital investment, and increases in direct employment and tourism, as well as the related multiplier effects of induced economic activity.
- Strategy and planning
We identify client objectives, then recommend and foster the implementation of a course of action designed to meet those objectives.
Solving complex business problems
PwC has made a long-term commitment to the cruise industry. Our global perspective and operational knowledge provide unmatched value for our clients, and our in-depth experience allows us to help manage the critical challenges you face in the cruise industry today.