Why are cruises becoming more popular among global travellers?

In the nearly three years following the weakening of the COVID-19 pandemic, the global travel sector has noted a significant increase in the number of cruises being booked by travellers.

While this is surprising enough to many people, it is a trend that travel professionals and intrepid travellers welcome as it offers a completely different way to see the world. 

What’s more is that it may be booked anywhere in the world: the itineraries offer something for everyone regardless of age, gender, and personal preferences.

But as to why the cruise sector has boomed in such a way over the past several years, today’s report will show the mitigating factors and trends that are currently driving the popularity of cruises among today’s travellers.

In a nutshell: the global cruise sector as of 2024

According to Grand View Research’s Horizon Databook for 2024, the global cruise sector earned a total revenue of US$8.87 billion as of the end of last year.

North America remains the industry’s largest core market, with Americans and Canadians accounting for 50.1 percent of the total market in 2024, though the United Kingdom, Japan, and Brazil are not far behind.

However, if we take regional markets into consideration, the Middle East is steadily gaining ground and places like Saudi Arabia and the United Arab Emirates stand to become major source markets for the sector by 2030.

Grand View Research analysts also project that, based on a compound annual growth rate (CAGR) of 12.9 percent per annum, the global cruise sector stands to generate up to US$18.35 billion in total revenues by the end of the current decade.

While ocean cruises remain the biggest player in the industry, river cruises are steadily gaining sway in Europe, as well as parts of South and Southeast Asia.

Luxury cruises, particularly those run by major hospitality brands like Aman and Four Seasons, are also becoming quite popular and are growing well alongside experiential and / or expedition cruises.

Also, we need to take into consideration the fact that the average age of cruise passengers has significantly gone down over the past five years.

Changing demographics are significantly altering the industry

Thanks to television shows and cinema, many people grew up thinking that cruises were strictly for older people seeking more sedate pursuits as they ride the waves.

In the 21st century, however, nothing can be further from the truth as recent reports show that cruises now have solid appeal with a much younger demographic.

Indeed, a report published by BANC in the first quarter of 2024 represented by the chart above shows that individuals between the ages of 30 and 59 now make up 53 percent of the cruise passengers who travelled in 2023.

In a similar report, the Cruise Lines International Association (CLIA) pointed out that the average age of cruise passengers has gone down from around 60 to just 46 since the end of the pandemic, and that the over-60 population now makes for just 32 percent of cruise passengers in the past year.

In both reports, there was also a notable rise in the number of Gen Z individuals taking to cruises: 9.1 percent in 2024 and the number continues to rise as of press time.

As to why this is so, we look to s statement made by Fora Travel head of cruise Randy Marsden said in an interview with USA Today earlier this month: “Basically, people who originally thought that cruising wasn’t meant for them, and are now starting to see these products that are catered to them, and even seeing like the older, more established cruise lines offering new things on board to appeal to younger travelers.”

Social media and traditional media both have their part to play as well, as many solo travellers cite travel influencers on Instagram and TikTok as their primary source of inspiration for booking their own cruise experiences.

Better than conventional hospitality?

Considering how global cruising was the last sector in the travel industry to recover from the pandemic, it has since gained momentum and we are currently seeing competitive pricing despite inflationary issues, along with an upsurge in bookings.

In an interview in October of last year, Patrick Scholes, a travel and leisure analyst at Truist, remarked that cruise companies are having their day in the sun despite ongoing economic issues affecting other sectors in the travel and tourism industries.

Brandt Montour, an analyst for Barclays, commented: “The cruise industry’s continued strength in bookings and demand, whilst cracks form across much of the rest of the travel market, is primarily driven by the combination of the still significant discount to land-based vacations coupled with the relatively elevated service levels.”

Given Montour’s sentiments and trends seen in the third and fourth quarters of 2024, cruises are gaining popularity as a more exciting and significantly cheaper alternative to more conventional hotel stays and land-centric tours.

Indeed, accommodations on board ship are now more or less at par with those of their land-locked counterparts; larger or more luxury-centric cruise lines also offer exclusive butler service, in-room dining, and other perks for their passengers.

Something for everyone

At the recent rebrand for StarCruises and Dream Cruises (previously known together as Resorts World Cruises), company president Michael Goh pointed out that, not unlike hotels, cruise ships have a lot to offer today’s travellers.

Interestingly, Goh pointed out that some travellers made this discovery whilst looking for alternative trips during the pandemic.

According to Goh: “During the COVID period, there were not many travel options for travellers and they were like, ‘I have to come on board the cruise ship.’ When they did come aboard the cruise ship, they realised how exciting it was in terms of the facilities that the vessel offered.”

The passengers who came aboard at the time were active individuals who were feeling restless following the enforced isolation of the period.

For these travellers, cruise ships offered a variety of ways to stay active and have fun that they would not have normally encountered on a conventional staycation or tour.

Goh said: “So, we’ve got a zipline, six water slides, and even onboard entertainment; that’s what actually opened their eyes. Today, when we talk about cruise ships, travellers no longer say that they had a very boring time onboard.”

This sentiment is shared by StarCruises’ senior vice-president for entertainment Colin Kerr who was quick to remind us during a recent interview that, not too long ago, cruise vacations were thought of as sedate and slow-paced experiences; the coming of younger passengers, Millennials and Gen Z in particular, has pretty much upended this scenario.

Kerr said: “As times change and we keep getting new generations coming aboard, we’ve had to rethink what we do. Attention spans are a little bit shorter now. We have to offer a lot more variety and have people moving around, so that’s what we’re doing now.”

As a result, cruise ships offer a broad spectrum of activities to appeal to all ages and all levels of personal activity.

Onboard theatres offer shows ranging from musical performances that would not be out of place on Broadway or the West End, to  contemporary magic acts and acrobatic spectacles to easily rival those of the famed Cirque du Soleil.

Along with shore excursions, active types are spoilt for choice thanks to onboard gym facilities, extreme sport options like ziplining and rock climbing, and even aquatic fun in the form of pools of varying depths and water slides of varying heights and angles.

For cruise lines that lean strongly towards family-centric vacations, daycare centres and conventional play areas have been augmented with experiential areas for older children which combine play with learning, as well as digital and virtual reality arcades and even team-building activities for teenagers.

But this is all the tip of the iceberg; we will not be surprised if cruise lines continue to step up their game in the coming months and years and a new generation of travellers makes its way to the high seas.