Travel & Hospitality Tech Outlook | Wednesday, October 26, 2022
By 2028, the company predicts the cruise industry to be valued at USD 15.1 billion with a compound annual growth rate (CAGR) of 11 per cent.
FREMONT, CA : Cruising was severely impacted by the pandemic, like all other travel-related industries. And despite limits in cruising lasting longer than in hospitality or aviation, its recovery has been spectacular. Grand View Research, Inc.'s latest research on market intelligence estimates the cruise sector at USD 7.67 billion in 2022 but projects strong growth over the following six years.
According to the company, the cruise industry will be worth USD 15.1 billion by 2028, growing at a compound annual growth rate (CAGR) of 11 per cent.
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The research lists numerous variables that will support this expansion. With incentives like themed sailings and multi-generational family packages, seasoned cruise operators like Carnival Corporation & Plc. and Royal Caribbean Group have been luring in new customers.
58 per cent of cruise passengers from other countries are first-timers, according to the Cruise Lines International Association (CLIA). The industry's growth, however, will come from more than just the ocean cruise segment. According to the report, river sailing is expected to increase the most over the next six years. Like the major ocean cruise companies, river cruise lines attempt to draw in more passengers. For instance, Uniworld River Cruises has started a line of mystery cruises, where customers aren't informed of their destinations until they arrive at the airport. In 2023, a mystery cruise was advertised, but it sold in just 48 hours.
Over six years, cruisers' demographic will also change. Nearly 50 per cent of the market in 2022 would have come from North America, with about 25 per cent coming from Europe. However, there are incentives for Asian consumers to book cruises. In India, seat fees will be slashed by 70 per cent in 2020 to promote increased cruise tourism.
Gen Z also has a role. The generation is anticipated to spend more on leisure travel, especially sailing, during the next six years. The CLIA predicts that Gen Z will overtake Millennials as the primary cruise travellers. Gen Z is choosing smaller cruise lines for more environmentally friendly and genuine experiences as they place greater value on sustainable tourism, which should drive growth in that industry until 2028.
During the pandemic, passenger counts decreased by 80 per cent, but the decline was only temporary because cruising is poised to make a spectacular comeback.
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