carnival shanghai

China’s Booming Cruise Market Attracting Carnival, Princess, and Royal Caribbean

Cruise market expected to grow to half the US market by 2020

Cruising might seem like something for the elderly, North American or European set, but it’s exploding in popularity in China. Now, some western cruise liners want to get in on the action.

The number of Chinese cruise passengers rose 79 percent between 2012 and 2014, prompting more companies to base more ships out of Chinese ports. Carnival Cruises continues to expand into the Chinese market, with plans to offer a fifth passenger liner out of Shanghai by 2017. The new Princess Cruises ship will be the company’s first to be exclusively run out of China for the entire year and will include catering tailored for Chinese tastes, such as “ocean-view hot pot”.

Four other Carnival cruise liners based out of China include the Costa Atlantica, currently on an 86-day, around-the-world tour carrying only Chinese passengers.

Carnival expects the overall number of outbound cruise passengers from China to hit the 1 million mark for the first time in 2015, adding the Chinese market will grow to half the size of the US market by 2020.

“China presents the next great frontier for cruising,” said Carnival CEO Arnold Donald. “It’s just a matter of time before China becomes the largest cruise market in the world.” Putting their money where their mouth is, the company recently relocated its chief operating officer to Shanghai.

Meanwhile, rival Royal Caribbean looks to strengthen its hold on the Chinese market by entering into a partnership with the popular Chinese online travel company Ctrip, the biggest seller of cruise tickets in China. Royal Caribbean also plans to build its third Quantum-class ship to be based out of Tianjin, and has expressed interest in building Chinese based dry dock facilities and resupply centers for its ships.

Like Carnival, Royal Caribbean sees China as a tremendous opportunity. “Potential growth here is greater than the US market,” said Michael Bayley, president and chief executive of Royal Caribbean’s international operations.

Charles Liu

The Nanfang's Senior Editor