An industry that had nowhere to go but up after the pandemic is rising at supersonic speed, and young travellers are leading the way.
Trip.com Group recently announced a remarkable surge in global cruise bookings, with a 344% year-on-year growth from January to October 2024 compared to the same period in 2023.
Trip.com also noted that younger travellers are flocking to cruise travel in record numbers. Bookings from millennial travellers skyrocketed by 857% in the first 10 months of this year versus 2023, while those of Gen Z travellers increased by 450%. Older age groups also saw significant growth, with a 112% rise in bookings from those born in the 1950’s.
The trend could get another boost this week when Royal Caribbean International and Norwegian Cruise Line release their quarterly financial reports (29OCT and 30OCT, respectively.)
“Cruise companies are having a moment right now,” Patrick Scholes, travel and leisure analyst at Truist, said in an interview with CNBC.
The cruise boom stands in contrast to hotel bookings. CNBC noted that Hilton CEO Christopher Nassetta said during the company’s recent quarterly earnings call that U.S. leisure travel demand “is flat, maybe even a little bit down.”
“If that’s true that the consumer is slowing down in other sectors, that really bodes well for us to be able to take them into our demand profile because we will be of value. We give a better experience at a better price than they can achieve elsewhere,” Carnival CEO Josh Weinstein said in an interview with CNBC’s “Money Movers.”
Carnival recently reported third quarter net income of $1.7 billion, up more than 60% from the same period last year.
In a recent chat with the media, Travel Leaders Network Vice President for Canada Christine James said cruise travel has “gone nuts.”
“It just keeps growing and growing,” she said.
“Cruise is absolutely on fire,” TDC general manager Karine Gagnon told Open Jaw recently. “Our sales are increasing by double digits year after year after year.”
The Business Research Company recently stated that the cruise industry is projected to increase from US$6.96 billion in 2023 to $7.82 billion in 2024. The company also noted that the increasing demand for luxury travel is anticipated to drive the growth of the cruise market in the future.
Trip.com said cruise trips also are getting slightly longer. with the average cruise duration rising from 4.53 days in 2023 to 4.81 days in 2024.
