Cruise ship passengers are getting younger, according to data the Cruise Lines International Association (CLIA), and appealing to wider audiences, helping cruise business to bounce back.
The average age of cruise passengers fell for two straight years after being largely stagnant since at least 2016, according to CLIA.
Half of the company’s passengers at Royal Caribbean, are Millennials or Generation Z, according to Chief Executive Officer Jason Liberty, and the fastest growing portion of its customer base.
Royal Caribbean has seen significant success appealing to a wider audience with its new ships, including the Utopia of the Seas, offering upscale dining options, adults-only areas, and private Caribbean islands, leading to increased stock prices and projected earnings growth
The cruise industry has bounced back post-pandemic, with ocean cruises seeing a 7pc increase in passengers compared to 2019 and a rise in US travel expenses allocated to cruises, impacting demand for traditional hotels/resorts
The all-inclusive expense and cost-effectiveness of cruises are appealing to younger travellers, with social media playing a significant role in shaping perceptions and increasing interest in cruising among Gen Z and Millennials, contributing to growth in new-to-cruise passengers and cruise popularity.
David Tinsley Bank of America Institute senior economist said. ” This year, 7.2pc of US travel expenses have been allocated to cruises, up from 5.8pc in 2019. It may not be consumers literally swapping hotels for cruises, but it is fair to say that the growth in the cruise sector is meaning demand for hotels/resorts is not as strong as otherwise.”
