CEOs of world's top cruise lines talk shop

ByABC News
September 26, 2011, 12:53 PM

— -- Cruising for years has been one of the fastest growing segments of the travel industry — the fastest by some measures. Since 1980, the number of people taking a cruise has risen by more than 7% per year. What's behind the growth, and can it continue at a similar pace?

USA TODAY assembled five of the industry's top executives in Miami earlier this month for a roundtable discussion on the topic: Adam Goldstein, CEO of Royal Caribbean International; Dan Hanrahan, CEO of Celebrity Cruises; Gerry Cahill, CEO of Carnival Cruise Lines; Kevin Sheehan, CEO of Norwegian Cruise Line; and Karl Holz, president of Disney Cruise Line.

The hour-long panel discussion was moderated by USA TODAY's Gene Sloan and Veronica Gould Stoddart.

USA TODAY: What's driving the growth in cruising, and can it continue?

Goldstein: You get a mix of benefits that you don't get anywhere else, and people are gradually discovering that … in terms of the entertainment value, the service … the ability to see multiple destinations on a single voyage without having to pack and unpack all the time. Because it's not an easy thing to sample, it's taken us longer probably than we would all have liked (to gain acceptance), but slowly but surely … we're penetrating the vacation population.

Hanrahan: The brands have done a great job differentiating themselves with their marketing, and products have changed. Because of that it has attracted a lot of (new customers), and I think it will continue to do so.

USA TODAY: Even with the rapid growth, four out of five Americans have never been on a cruise. For those would-be first-timers, make the case for cruising.

Hanrahan: The quality of the service and the experience, and the variety of experiences that you can have on board (from) dining to entertainment to activities is just so much broader than most hotels could ever offer. (Also) it's easy. People are so busy these days, and (with a cruise ship) you walk on and, from there, things are taken care of. You don't have to worry about where you go out to dinner that night. You're not wondering what you're going to do to keep your kids happy.

Holz: Cruising provides you a very convenient way to experience a (destination). I had some friends who were on (Norwegian Cruise Line's) cruise out in Hawaii. Their comment was, "There's not a better way to experience Hawaii." You see an island, you (return to) the ship, you enjoy yourselves over dinner, and the next thing you know you're at another (island).

Cahill: If you go to most land-based vacation spots, they're selling a room. We don't sell rooms. What we're selling, or creating, is a vacation experience. When the guest goes home, they go home with memorable experiences, whether it's a simple little thing like a family going back to their cabin after dinner at night and seeing a towel animal on the bed. Cruising has done that better than land-based vacations.

USA TODAY: What are the most common misperceptions about cruising?

Sheehan: One is (that cruising is for) an older demographic. Each of the brands has really done a good job of trying to show that this is meant for every demographic. For instance, with (Norwegian Cruise Line's new ship) the Epic, with the introduction of (such entertainment as) the Blue Man Group and Cirque Dreams and Howl at the Moon and Second City, we're showing that this is really something for (a wide age range).