Cruise industry heads towards record growth

The annual State of the Cruise Industry report reveals a surge in passenger volume, robust economic impact, and a strong commitment to sustainability.

In 2023, the cruise industry welcomed 31.7 million passengers, surpassing pre-pandemic levels by seven per cent, according to Cruise Lines International Association (CLIA), which produced the report. This growth is indicative of the appeal of cruise vacations and the industry’s strength in the face of challenges. The report forecasts further expansion, with passenger numbers expected to reach 35.7 million in 2024.

“Cruise continues to be one of the fastest-growing and most resilient sectors of tourism — rebounding faster than international tourist arrivals — and a strong contributor to local and national economies,” said Kelly Craighead, president and CEO of CLIA.

She continued: “In 2022, cruise tourism cruise generated 90 per cent of economic impact compared to 2019 despite passenger volumes that year at 70% of 2019 levels. Over the past 50 years, cruise tourism has demonstrated its leadership in managed tourism and is an industry that has plenty of room for continued responsible growth given cruise travel comprises just 2 per cent of overall travel and tourism.”

The intent to cruise remains strong, with six per cent more people expressing interest in taking a cruise compared to pre-pandemic levels. Millennials, in particular, are demonstrating a strong enthusiasm for cruise travel, making them a key demographic for the industry.

To meet growing demand, the global cruise capacity is forecast to increase by 10 per cent from 2024 to 2028. This expansion will be supported by investments in propulsion technologies with conversion capabilities for future alternative fuels as well as the use of a range of technologies and innovations to advance sustainability initiatives. SUPPORT LOCAL COMMUNITIES

The cruise industry’s economic contribution is substantial. In 2022, it generated US$138 billion globally and supported 1.2 million jobs. The industry’s multiplier effect is significant as 63 per cent of cruisers have returned to a destination they first visited by cruise ship for a longer stay.

The study also indicates that cruise lines are investing in cleaner propulsion technologies, reducing emissions, and implementing innovative solutions to protect marine environments. The industry’s commitment to sustainability is evident in its progress towards achieving net-zero emissions by 2050.

Beyond these key trends, the cruise industry is also witnessing several important shifts.

Cruise lines are investing in cutting-edge technologies to improve guest experiences, improve efficiency, and reduce environmental impact. For example, advancements in artificial intelligence are being used to personalise guest services while digital platforms are streamlining on-board experiences.

Additionally, destination partnerships have become more critical as the industry fosters stronger relationships with destinations to promote responsible tourism and support local communities. This includes initiatives to protect cultural heritage, reduce waste, and support local businesses.

Cruise lines are also expanding their offerings to cater to wellness-focused travellers and provide enriching educational experiences. This includes fitness centres, spa treatments, cooking classes, and cultural lectures.

Emerging markets have taken on more importance, the report revealed, as the industry expands its reach to new markets, such as Asia and South America, as demand for travel continues to grow globally.

What’s more, the cruise industry relies on a dedicated workforce of nearly 300,000 seafarers. As it continues to evolve, it is poised to play a vital role in the global tourism sector with its strong growth and employment prospects, economic impact, and commitment to sustainability.

CLIA is the world’s largest cruise industry trade association, providing a unified voice for the sector as the leading authority, and represents 15,000 of the world’s largest travel agencies, over 54,000 travel agents, and approximately 95 per cent of ocean-going cruise capacity.