On December 22, Compete introduced a Cruise Demand Measurement solution, with the initial analysis focusing on activity for upcoming July 2009 sailings. This analysis has now been updated with two additional months of demand data. Consumer behavior has rapidly shifted and cruise marketers are now facing an increasingly severe shortfall in interest in upcoming cruise vacations.

Cruise line executives have historically demonstrated skill in incentive based marketing to stimulate demand. In this economy, the meta issues are timing (when to incent) and sweet spot (how much to incent). Compete’s Cruise Demand Measurement solution can provide answers to these critical questions by studying actual consumer cruise shopping behavior. Quantifying consumer cruise interest prior to sailings gives cruise lines a larger timeframe for making specific decisions regarding pricing and promotional strategies.

First, a recap of what last year’s demand curve looked like for July. This normal consumer demand curve reflects that just above 20% of demand had been created by seven months prior to July 2008 departures. The following six months represented 68% of demand, with the final 12% coming during the month of sailing.

For July 2009 departures, what began as a slight demand shortfall has evolved into a considerable gap. As these departures draw closer, significant pressure will be on cruise line executives to fill their ships. Cruise demand is now 4.3 percentage points lower than where it should be at this stage, with the following month traditionally where a large spike in activity is required.

Although cruising has traditionally been a popular and stable vacation activity, a sliding economy is impacting demand. The demand shortfall that Compete is measuring is a leading indicator of the data feeds that cruise line executives normally have access to. Cruise organizations will need to rapidly implement initiatives to stimulate consumer interest in cruising, make up for this growing demand shortfall, and maximize revenue. By utilizing Compete’s Cruise Demand Measurement solutions, cruise lines will be able to act more quickly with better insights into the consumer than they have ever had before. Analysis is available by brand, destination, departure date, and a variety of other critical segments.

Compete, a unit of TNS Media, delivers digital intelligence that helps the world’s top brands improve their marketing based on the online behavior of millions of consumers. TNS Compete’s products and services are fueled by the largest integrated online consumer behavior and survey panel in the industry. Digital insights are interpreted by analytical experts in the automotive, financial services, media, mobile, online, retail, telecom and travel markets to deliver data and recommendations to create effective online experiences and highly profitable advertising campaigns.