Cruise line executives in finance, marketing, and revenue management have the complicated task of analyzing and measuring consumer demand. Filling cabins at healthy price points is a challenge that has been met admirably by the industry. As the economy slows, sailing at capacity with acceptable yields is becoming increasingly difficult.

To address these challenges, Compete has developed a Cruise Demand Measurement solution to provide the industry powerful visibility into consumer cruise shopping behavior. Compete measures shifts in consumer cruise interest prior to when bookings are made. As a result, cruise lines now have access to valuable patterns and insights. Compete’s proprietary analysis and expertise enables a more timely and precise process for data-driven pricing and marketing decisions.

As an illustration of these capabilities, Compete analyzed the current state of consumer behavior as it relates to future cruising.

A normal consumer cruise demand curve is graphed below, representing interest in July 2008 cruises in the months leading up to these departures. Of all the interest and shopping for these departures, 12% took place the same month as the departures, and 17% took place in the month prior. Three months prior and six months prior to departure represented significant inflection points where consumer interest underwent a shift. In total, at seven months prior to departure, 20% of demand was created, and by four months prior to departure, nearly 50% of all demand was created.

Demand for cruising in 2009 is now hitting a shortfall compared to normal patterns. Using July 2009 departures as an example, nearly 14% of demand should already have existed by nine months out. Instead, consumer demand had initially been strong for July 2009 cruises (slightly exceeding target levels), but then fell behind substantially. There is now a 1.5 percentage point gap in consumer demand, which threatens to worsen if current trends continue.

Cruising continues to be a tremendous vacation value. To effectively impact consumer travel demand in today’s economy, however, cruise line executives must act decisively and quickly to maximize their revenue for future inventory. Using Compete’s Cruise Demand Measurement solutions cruise lines will be able to act more quickly with better insights 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.