Just a sliver of luxury hospitality spending
Yet the total spending for luxury cruises is just a 1% sliver of the luxury hospitality industry.
So said Jason Montague, president and CEO of Regent Seven Seas Cruises, citing a Bain Capital study in his address to the Signature Travel Network's Owners Meeting on Thursday.
'It's a great time to be the [luxury cruise] space, Montague told the audience, which includes some of the top retailers in cruising, gathered this week at the Ritz-Carlton Amelia Island.
Regent will grow its capacity 28% with the addition of Seven Seas Splendor in 2020.
Boomers have the bucks
As for the target market, 'There's a lot of talk about millennials. They're cute,' Montague quipped. 'The reality is: the wealth is with the baby boomers, and they have the time to travel.'
Far outpacing all other generations, boomers currently control a 50% share of net household wealth, which will decline just five points by 2030, when Gen X will have a 31% share and millennials, 16% (a big increase from their current single-digit share).
Plus, the age 55-plus market currently has the highest consumer confidence in years, Montague said, so 'it's a fantastic time to be focusing on baby boomers.'
Moreover, there's a societal shift from desiring possessions to placing a higher value on experiences. 'We benefit from this secular shift,' the Regent chief added.