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High-end cruise market shows signs of improvement

October 30, 2009

Thirteen percent of the most well-heeled Americans intend to cruise over the next 12 months, reversing a slide that began in spring 2008.

The American Affluence Research Center, which began tracking intentions to cruise in 2002, reported that in a recent survey of the wealthiest 10% of US households, intentions to cruise during the next 12 months were expressed by 13% of the respondents, one percentage point higher than what the survey found in April of this year.

The AARC said that it surveyed 684 men and women representative of the most affluent 11.4 million households in the U.S.

Households included in the survey have an average annual income of $300,000, an average net worth of $3.1 million, average investable assets of $1.4 million and an average primary residence value of $1.2 million, the AARC said.

The average age of the respondents is 56 with 88% married, 55% male and 45% female.

As in prior surveys, the AARC said that those most likely to cruise during the next 12 months are age 60 and over (18%) and those with a net worth of $6 million or more (31%).

Since the AARC began tracking intentions to cruise, it has recorded percentages as high as 22% in fall 2007. Percentages usually range from 15% to 19%.

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#2November 02, 2009
A one percentage point increase is well within the survey margin of error and likely not a "significant" change from the data gathered in the prior survey. There was some evidence of pricing for luxury bookings for 2010 strengthening in this study by Cruise Market Watch http://www.cruisemarketwatch.com/blog1/articles/cruise-ticket-prices-increase-14-from-early-2009-lows/
#1November 02, 2009
Stabilization is probably a better way to characterize these findings. As in other travel sectors, there's really no evidence of an upturn yet.

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