December 25, 2024

Virgin Voyages’ Scarlet Lady cruise ship near Weymouth, England.

Finbar Webster | Getty Images News | Getty Images

Virgin Voyages’ Scarlet Lady cruise ship near Weymouth, England.

Finbar Webster | Getty Images News | Getty Images

This summer, many people will embark on a sea trip.

The port has been crowded with cruise ships over the past few years as holidaymakers flock to larger ships and operators scramble to accommodate a post-pandemic surge in bookings – many from first-time passengers. The industry’s expectations for this year are even higher.

Benjamin Xiang, a flight attendant in San Francisco, took his first cruise last August and put aside his reservations about being a “cruiser” and decided that this kind of travel was “not my way of traveling.”

With a Virgin Voyages promotion that allowed him to use credit card points to pay off a $2,500 bill, Xiang booked a weeklong all-inclusive adults-only cruise from Barcelona, ​​calling in Mallorca, Ibiza and along the French Riviera .

“I invited my best friends, and we prepaid the $600 bar bill, and then we thought, ‘Let’s just hang out by the pool and read a book or something,'” said Xiang, 35. “We ended up hanging out there every night. Come to the party and have fun.

He is one of many cruise newcomers driving the industry’s recent growth. Some 27% of cruise passengers According to industry group Cruise Lines International Association (CLIA), the number of first-time arrivals has increased by 12% in the past two years compared with the previous two years.

“Would I go back? I think so,” Xiang said. “Do I pay this time? Yes.”

That’s exactly what cruise operators hoped for, and so far they’ve achieved it: CLIA’s latest report found that 82% of cruise lines said they would book again.

Last year it received 31.7 million passengers, an increase of 7% from 2019, and it is expected that the number of passengers will increase to 34.7 million by the end of 2024.

Jennifer Klaussen, owner of Sundari Travel in Malibu, California, said that like Xiang, many first-time cruisers travel with a group of friends.

“Once they get on a cruise and realize it’s not what they imagined, they often become interested in future cruises and diverse destinations,” she said, adding that new operators have managed to “reduce The stigma associated with cruises – it’s only for seniors.

Onlookers gather at South Point Park to watch the world’s largest cruise ship, Royal Caribbean’s Elephant of the Seas, set sail from the Port of Miami on its maiden voyage on January 27, 2024 in Miami Beach, Florida.

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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 cruise customers industry-wide is 46, Millennials now hold nearly the same share (22%) as Baby Boomers and Gen X, who each hold 24%.

“The cruise industry is always trying to launch new ships and new experiences that appeal to younger, newer demographics, whether it’s a big, eye-catching new ship,” said Cruise Critic editor-in-chief Colleen McDaniel. Find attractions for the family, or more worthwhile experiences like sailing in the Galapagos Islands or Antarctica.

Amenities don’t hurt, either, said Nathan Rosenberg, chief brand officer at Virgin Voyages. “Millennials and Gen Z like it when everything is included. Think meals that foodies will love, tips covered, Wi-Fi to stay connected and tons of fitness classes,” he said.

To meet growing demand, ships are becoming larger and larger.

In January, Royal Caribbean Group launched Ocean icon — is currently the largest cruise ship in the world, with 20 decks, 40 restaurants and room for more than 7,000 passengers and 3,000 crew members.

Meanwhile, the company reported a 16% increase in new cruise passengers across its cruise lines from this year to last year. Nearly half of all Royal Caribbean guests are millennials or younger, Royal Caribbean CEO Jason Liberty said during the company’s first-quarter earnings call.

Likewise, Norwegian Cruise Line CEO Harry Sommer told CNBC earlier this month: “We obviously appeal to older customers, but Millennials and Gen Z are the fastest-growing groups on our cruise lines right now.”

Cruises aren’t usually cheap, though, and Sommer noted that the company’s target customers are middle- or upper-income earners. As consumer spending cools across much of the economy, Americans are adjusting their summer vacation plans to fit within their budgets.

The proportion of tourists who postponed travel due to high prices reached 32% in 2019 Deloitte Annual Summer Travel Survey, a significant increase from 24% last year. But wealthier holidaymakers still seem eager to spend money on everything from first-class flights to luxury train journeys, as the industry Continue to launch high-quality products.

Deloitte’s report released on Tuesday said that “more high-income travelers are going on cruises” while “low-income travelers are going camping.” (“RV travel is up across the board,” it added.)

That doesn’t mean cruise passengers aren’t concerned about price.

A water slide is seen at the Thrill Island waterpark aboard the Royal Caribbean Icon of the Seas cruise ship in PortMiami, Florida, United States, Thursday, January 11, 2024.

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Jaclyn Groh will embark on her first cruise in March 2025, sailing around the Caribbean. The 34-year-old therapist and social work professor at Ohio State University in Columbus usually takes his family on boat cruises around lakes, beach visits and, “of course, the occasional Disney adventure with the kids,” Gro said.

While some of her friends had done family cruises, she had never been interested in the biggest cruises because they seemed “overwhelming.” But Gro said her travel agent’s description of the available packages won her over when planning a solo vacation for her and her husband next year.

The smaller Explora II boat she chose had a “boutique feel that we liked,” she said. It’s about the same price as a resort in Curacao, where the couple will celebrate their 10th wedding anniversary this fall. A week on land costs about $6,500 and a cruise costs about $6,700.

“The price seems very reasonable for everything included, but with the cruise we’ll get to experience so many new locations and excursions,” said Groh, who is looking forward to “the perfect combination of luxurious rest and adventure.”

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