Cruise Lines International Association (CLIA) gave journalists a state of the cruise industry report today and, in short, everything is going gangbusters. 

In 2007, 12.52 million people took a cruise worldwide, an increase of 4.6% over the previous year.   Occupancy averaged 105% (including third- and fourth-berth passengers); that number is expected to increase “slightly” in 2008. 

In 2008, CLIA-member cruise lines will introduce eight new vessels and two redeployed ships with a total increase in berths of 23,275 berths.  And, between 2008 and 2012, 35 new ships will enter service, a 29% increase in capacity from 2007.

Dan Hanrahan, CLIA’s marketing committee chairman, pointed out that “the weak U.S. dollar is a boon to the cruise industry because Americans are buying Europe cruises in record number.  At the same time, the industry experienced an increase in European passengers traveling to the US to take warm-weather vacations,” he said. 

The most popular destinations are the Caribbean, Alaska and the Mediterranean, which is the fastest growing region, while passengers cite more flexible dining programs as the most important trend in cruising. 

CLIA, which comprised of 24 major cruise companies, also released a recent survey of travel agents regarding their projections for 2008.  The majority believe cruise sales will be very strong in 2008 and the industry won’t be affected by the credit crunch and economic downturn.

However, before you run to the phone and tell your broker to sell everything in your portfolio and purchase Carnival or Royal Caribbean stock, consider what veteran cruise journalist Mike Driscoll also reported today in his weekly newsletter, Cruise Week:  “With all the news of a downturn in consumer spending last month, it’s not surprising that many retailers (travel agents) are reporting a less than spectacular start to the new year.”  He interviewed a number of agents who were far from enthusiastic about increasing revenue in 2008.

Tim Rubacky, public relations director of Oceania Cruises, points out that “because people book six months to a year in advance, a large amount of 2008 inventory is already sold.”  He said that 90% Oceania’s staterooms are sold out in 2008.

I recommend booking six months or more in advance if you’re cruising during peak season in any of the most popular cruising regions.

Has the economic downturn affected your vacation plans? 

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