Cruise Industry Takes Hit After Costa Concordia Accident

 In Maritime Law

It’s been about six months since the Costa Concordia ran aground, capsized and partially sunk. Shortly after this accident occurred, I predicted a downturn in the industry. I also set forth the proposition that other cruise lines would suffer as a result of Costa’s blunder. My prediction has been accurate. Industry insiders have said that ticket sales have slowed by more than ten percent, and profits are off since before the incident.

Micky Arison, the chairman and CEO of Carnival Corporation confirmed that their earnings were off and rely on his company’s surveys that show first-time cruisers were impacted by the event. Mr. Arison hopes that as time goes by, the industry will be able to regain the trust of the passengers and recover from the fallout of this incident.

It is interesting to note that the cruise line industry has grown exponentially over the last 10 to 15 years. With higher competition and lower fares, cruising has become a popular alternative to traditional occasions. Considering that the average ship holds 2,500 passengers, and multiple ships leave port every week, it is not hard to figure the volume of passengers that the cruise line industry serves. Compared to catastrophic disasters such as the Concordia, it is easy to understand that cruising is a very safe method of travel. Therefore, it is interesting to observe the type of passenger fall off that the industry has seen since the Concordia disaster.

While airline travel is still considered to be among the safest forms of transportation, the industry does not suffer the type of losses the cruise line industry saw when a plane crashes. Automobile and ground transportation still remain the riskiest of all forms of transportation and yet that doesn’t hinder its use considering the high rate of highway accidents.

Hopefully, the industry will recover and continue to grow. Perhaps the industry will learn from its mistakes in order to avoid similar disasters in the future. Cruising is still, and will continue to be, a pleasurable form of transportation. As the industry grows, new ports of call will open and expand the menu of travel spots available. This incident should not be a permanent put off for anyone considering cruising as a vacation alternative.

 

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