A Golden Age of Cruising: How Onboard Retail Can Reach $4 Billion by 2028

The cruise industry is experiencing a remarkable boom. With passenger numbers soaring and a record number of new ships on the horizon, the sector is set for unprecedented growth. According to the CLIA's latest "State of the Cruise Industry Report," a staggering 42 million passengers are forecast to set sail by 2028, a 41% increase from pre-pandemic levels. This surge presents a golden opportunity for the cruise retail industry to capture a significant portion of that growth, improve sales performance and aim for a potential $4 billion in annual sales by 2028.

7 ICON-CLASS SHIPS ARE BEING BUILT FOR ROYAL CARIBBEAN CRUISES

The news this week that Royal Caribbean is expanding it's Icon-class order with Meyer Turku for a 7th ship in the mega ship class, confirms this. Growth is the super power of our industry.

So, how can brands and operators leverage this perfect storm of passenger growth and rising demand to unlock the full potential of onboard retail? The key lies in understanding and adapting brand strategy to serve the needs of the modern cruise guest, achieving efficient global consistency and empowering the frontline teams who serve them to promote your product range with confidence.

The New Cruiser: Loyal, Younger, and Ready to Shop

The latest data from CLIA reveals a compelling profile of the modern cruise traveler. They're not just older travelers; they're a diverse mix of repeat guests, new-to-cruise explorers, and a growing population of Gen-X and Millennial travelers.

• Loyalty is a Superpower: An impressive 82% of past cruisers say they will sail again, and a quarter of repeat guests are cruising two or more times a year. This high level of loyalty is a goldmine for onboard retail, as these guests are already familiar with the cruise experience and more receptive to in-store offerings, they simply need to be recommended the perfect product for their needs.

• The Next Generation: The average age of a cruise traveler is 46.5, but this figure is rapidly being lowered by a significant influx of younger cruisers, with 36% now under the age of 40. Gen-X and Millennials are the most enthusiastic about cruising, representing a new, digitally savvy, and experience-driven demographic. Unlike traditional shoppers, these guests expect more than just a transaction; they seek personalized, unique, and high-quality retail experiences that extend beyond the traditional duty-free model. For brands, this means success is tied to offering innovative product ranges, telling compelling brand stories, and creating a sense of discovery that resonates with this new generation of explorers.

• Solo and Multigenerational Travel is on the Rise: The report highlights a jump in solo travelers, with 12% sailing alone in 2024, double the previous year. Additionally, nearly one-third of travelers are on a multigenerational vacation. These evolving travel patterns create new retail opportunities, from products catering to individual interests to experiences that appeal to an entire family.

Fleet Modernization and Niche Market Growth

The physical landscape of cruising is also changing. With a massive $56.7 billion investment in new vessels, the global fleet is expanding and becoming more specialized. The total number of ships will exceed 310 in 2025, adding over 35,000 new berths this year alone.

While mega-ships capture the headlines, the reality is that the cruise ship fleet is a balanced mix of sizes, with more than 70% of ships being small- or mid-sized. This is a crucial point for retail, as it underscores the growth in two key segments:

• Expedition & Exploration: This sector is growing rapidly, with a 150% increase in capacity projected from 2019 to 2029. These travelers are seeking unique, adventure-focused experiences, creating a demand for specialized gear, apparel, and souvenirs that align with their journey.

• Luxury: The luxury segment has tripled since 2010. By 2028, 1.5 million travelers are forecast to choose a luxury cruise, representing a massive market for high-end retail, exclusive products, and bespoke services.

Achieving Global Consistency

The cruise industry is a complicated 'jigsaw puzzle' full of complications, challenges and variations. But for brands who want to grow in the channel, achieving economies of scale through a consistent global strategy is a sure fire way to build scale, profitability and success. Distribution needs to be adapted, flexible and robust to achieve replenishment wherever and whenever. Product needs to be 80:20 in achieving a core range that is suitable for most ships and therefore able to be sold with confidence by crew, and with smaller ranges designed for regional specifities. Pricing needs to be competitive to local market to ensure that the reason why guests will chose to buy onboard is robust and surefooted, and finally and most crucially there needs to be a clear strategy on focusing on the crew.

The Most Critical Piece of the Puzzle: Your Onboard Crew

For brands and operators, all this growth means nothing without a strategy to convert that foot traffic into revenue. While product selection and store design are important, the most impactful factor in cruise retail success is the onboard sales team.

Recent industry data from research conducted by m1nd-set reveals a powerful truth: over 50% of all in-store transactions in cruise retail are influenced by the sales crew. Guests visit the shops an average of 3.3 times per voyage, and 80% of their interactions with staff influence a purchase. The crew are the true brand ambassadors, creating personal connections and driving sales. Yet, traditional training methods are often a logistical nightmare due to constant crew rotations and the sheer scale of the operation.

This is where the Cruise Retail Academy comes in. By focusing on the "people" element of the cruise retail equation, the Academy helps brands deliver more effective sales training to the crew, unlocking the full sales potential of the channel. The goal is to provide brands with a scalable, onboard and digital hybrid solution that ensures every single crew member has the knowledge and confidence to sell effectively, leveraging our 30+ years of industry experience to drive higher sales. .

The cruise industry is set to soar, and with the right strategy focused on empowering the onboard teams, the cruise retail sector can easily crack the $4 billion mark by 2028. The time to invest in your people is now.