Many people will get their sea legs this summer.
Ports have been filled with cruise ships in recent years, as vacationers flock to larger and larger ships and operators rush to meet a surge in post-pandemic bookings – many from new passengers. The industry expects even more this year.
Benjamin Xiang, a San Francisco-based flight attendant, took his first cruise last August, putting aside his reservations about “cruise lines” and a type of travel he had imagined would be “not my style of travel.” .
Taking advantage of a Virgin Voyages promotion that allowed him to use credit card points to cover the $2,500 bill, Xiang booked a weeklong, adults-only, all-inclusive cruise from Barcelona, with stops in Mallorca, Ibiza and along the French Riviera.
“I invited my best friend over, we prepaid a $600 bar tab and we were like, ‘We’ll just hang out by the pool, read a book or something,'” said Xiang, 35. “It turned out we were partying every night and I had a great time.
He is one of many cruise newbies who have contributed to the industry’s recent growth. Over the past two years, about 27 percent of cruise passengers were newcomers, an increase of 12 percent from the previous two-year period, according to the Cruise Lines International Association (CLIA), a trade group.
It turned out that we partied every night and had a great time.
“Will I go back? I think so,” Xiang said. “Will I pay this time? Yes.”
That’s exactly what cruise lines are hoping for, and so far, they’re getting it: 82% of all cruise lines say they will book again, according to CLIA’s latest report.
After welcoming 31.7 million passengers last year, 7% more than in 2019, the industry expects volumes to reach 34.7 million by the end of 2024. Experts say that the combination of new arrivals, regular customers and young travelers is fueling this increase.
Like Xiang, many new cruise lines are groups of friends traveling together, said Jennifer Klaussen, owner of Sundari Travel in Malibu, California.
“Once they go on a cruise and realize it’s not what they thought, they’re usually interested in future cruises and diverse destinations,” she said, adding that new operators have managed to “reduce the stigma associated with cruising – that it’s only for older people.
Passengers under 40, including children, made up about 42% of cruise passengers last year, up from 35% in 2019, according to CLIA. While the average age of a cruise guest is 46 across the industry, millennials now make up almost the same share (22%) as baby boomers and Gen X, who each make up 24%. .
“The cruise industry has worked hard to launch new ships and experiences that appeal to a younger, newer demographic,” said Colleen McDaniel, editor-in-chief of Cruise Critic, “whether it’s a big and new ship with a watchful eye. catch family-friendly attractions or more bucket-list-worthy experiences, like cruises to the Galapagos or Antarctica.
The cruise industry has worked hard to launch new ships and experiences that appeal to a younger, newer demographic.
The amenities don’t hurt either, said Nathan Rosenberg, chief brand officer at Virgin Voyages, which only started sailing in 2021 as the cruise industry rebounded from the pandemic. “Millennials and Gen Z like the fact that everything is included. Think meals foodies would love, advice provided, Wi-Fi to stay connected, and a ton of fitness classes,” he said.
Ships are getting bigger and bigger to meet growing demand.
In January, Royal Caribbean Group launched Icon of the Seas, currently the world’s largest cruise ship, with 20 decks, 40 restaurants and room for more than 7,000 passengers and 3,000 crew members.
The company, meanwhile, reported a 16% increase in new cruise passengers between this year and last year on its various cruise lines. Nearly half of all Royal Caribbean guests are millennials or younger, CEO Jason Liberty said during the company’s first-quarter earnings call.
Similarly, Harry Sommer, CEO of Norwegian Cruise Lines, told CNBC earlier this month: “We obviously appeal to older guests, but millennials and Gen Z are currently the growing segment of our cruises. the fastest. »
However, cruises are generally not cheap, and Sommer noted that the company’s target customer base is middle- to high-income earners. As consumer spending slows across much of the economy, Americans are adjusting their summer vacation plans to fit their budgets.
The share of travelers discouraged by high prices reached 32% in Deloitte’s annual summer travel survey, up sharply from 24% last year. But wealthier holidaymakers still appear keen to shell out for everything from first-class plane tickets to luxury train travel, as the industry continues to churn out premium deals.
“More high-income travelers are heading to cruises,” while “low-income travelers are going camping,” says the Deloitte report released Tuesday. (“RV travel is on the rise across the board,” he adds.)
That’s not to say cruise lines don’t pay attention to prices.
Jaclyn Groh will take her first cruise in March 2025, around the Caribbean. The 34-year-old therapist and professor of social work at Ohio State University in Columbus usually takes her family on boat trips on a lake, visits to the beach, “and of course the occasional Disney adventure for the kids,” Groh said.
Although some of her friends have gone on family cruises, she has never been interested in the larger cruise ships because they seem “overwhelming.” But when looking for a vacation next year for her and her husband, Groh said her travel agent’s description of available packages won her over.
The smaller Explora II ship she opted for has “a boutique feel that we love,” she said. And it’s priced about the same as the Curacao resort where the couple will celebrate their 10th anniversary this fall. This week on land will cost around $6,500, while the cruise will cost around $6,700.
“The price seems very reasonable for all the inclusions, and yet with the cruise we will have the opportunity to discover many new places and excursions,” said Groh, who is looking forward to “a perfect combination of rest in luxury and adventure.