What the latest State of the Cruise Industry Report tells us!

It is the time of year again that the CLIA releases it's state of the industry report (link at end) where we get a 'crystal ball' to look into what is happening in terms of how the cruise sector is performing and what lies ahead. It is always fascinating reading, and helps industry insiders like myself quantify a number of perceptions .

So, what are the headlines of this year's report?

Firstly. there continues to be remarkable passenger growth and a bullish future outlook

The report highlights an incredible recovery since the pandemic and more optimistic growth in passenger numbers. Globally, 34.6 million cruisers went sailing in 2024. This is +9.3% vs 31.7 million passengers in 2023 and +6.8% vs the pre-pandemic figure of 29.7 million in 2019.

In terms of who is going cruising, North America led the source regions in 2024 with 20.5 million passengers, which is a staggering +13.4% vs 2023, followed by Europe with 8.44 million, up 2.8%. The Caribbean region remains the top destination, visited by 43% of all cruise passengers in 2024.

Looking ahead, the forecast is exceptionally strong in the short term, driven by the deployment of new high-capacity ships like MSC World America, Star of the Seas and Norwegian Aqua in popular destinations. The most mind-blowing number in the whole report however is the new forecast showing 42 million passengers will be sailing in 2028,

This represents a 41% growth vs pre-pandemic levels from 2019. And this really shows the sheer growth potential that the cruise industry is experiencing now.

So why is it looking so strong?

Well, alongside all these new ships, it is also to do with the passenger trends - specifically repeat cruisers, newcomers, and changing demographics.

One of the key details in the report reveals an incredibly high level of passenger loyalty, with 82% of those who have cruised stating they will cruise again. This figure is getting stronger and shows the incredible efforts that the industry is doing to provide a great experience to its guests. But also there is an exciting intake of new guests, with 68% of international travellers considering taking their first cruise, and 1 out of 3 international travellers have already taken a cruise. In 2024, 31% of cruisers over the past two years were new-to-cruise, an increase from 27% in 2023 and 24% in 2019. So, not only are cruisers coming back, there is a whole new generation of cruisers coming in!

While the average age of a cruise traveller is 46.5, it's really significant that 36% are under the age of 40. Notably, Gen-X and Millennials are the most enthusiastic about taking a cruise holiday. I find it really encouraging for the future growth of the cruise industry that 67% of cruise travellers are Gen-X or younger. This really goes against the stereotype that the industry has had to face for many years!

Some other interesting information that the report shares also highlights other growing segments in cruise:

• Solo Travel: In 2024, 12% of cruise travellers chose to sail solo, a significant increase from 6% in 2023. Cruise lines are offering more single-occupancy cabins to cater to this growing demand.

• Multi-Generational Travel: Cruises continue to be a top choice for multi-generational holiday makers. 28% of cruise travellers cruise with three to five generations. Nearly one third of Baby Boomers specifically are sailing with friends and family representing three to five generations. Boomers, the wealthiest retiring generation, are investing their wealth in experiences with loved ones particularly their families.

• Repeat Cruising: An increasing number of repeat guests are choosing to sail more than once a year. 25% of repeat cruise travellers are sailing two or more times a year, which shows how important building trust, loyalty and giving great experiences really are. The report also shows that guests are also booking further in advance and also that nearly half of repeat guests intend to take a longer cruise than the one they sailed last year. Important to note that the average length of a cruise is slightly increasing, up to 7.1 days.

Fleet Modernisation and Specialisation

The State of the Industry Report also highlighted that the global cruise line fleet is experiencing strong and consistent growth. The CLIA-member ocean cruise fleet exceeded 300 vessels for the first time in 2024, and it will increase to 310 ships in 2025. The total lower berth capacity exceeds 650,000 beds in 2025 for the first time.

But it's not all huge mega-ships!

The fleet balance includes a significant portion of small- to mid-size ships. More than 70% of ships sailing today and scheduled through 2036 are classed as small- and mid-size vessels. If you look closely at the capacity (lower berths - LB), you can see that the projected split for 2028 is roughly:

• 34% less than 1,000 LB,

• 39% between 1,000 and 3,000 LB

• 28% over 3,000 LB.

The new ships coming into service this year includes 11 new ships entering the global cruise fleet, adding over 35,000 lower berths and representing a $10.2 billion investment. The full orderbook through to 2036 includes 56 ships and over 168,000 lower berths, an incredible $56.7 billion investment. For sure, this will steer the growth strongly forward.

One thing to really note, particularly looking at the proportion of smaller ships remaining strong is the fact the 2 specific segments are seeing significant growth.

• Expedition & Exploration: This sector continues to attract travellers, particularly younger ones seeking extraordinary experiences. Global capacity for expedition and exploration ships will grow by 150% from 2019 to 2029. The number of passengers sailing on these cruises increased by 22% from 2023 to 2024 alone. There are now about 40 ships specifically built for expedition and exploration, a nearly three-fold increase in ships compared to 14 years ago. Travellers want adventure!

• Luxury: The luxury cruise travel market has tripled since 2010 based on the number of ships offering luxury experiences. The luxury fleet grew from 28 ships in 2010 to 97 ships in 2024. The number of lower berths in the luxury segment is projected to reach 45,751 by 2028, and 1.5 million cruise travelers are forecast to choose a luxury cruise experience by 2028.

Sustainability Takes Center Stage

The industry is actively pursuing pathways to net-zero by 2050. Cruise lines are advancing an ambitious sustainability agenda. This involves a path to decarbonisation through advancements in technology, infrastructure, and operations. Key areas of focus include:

• Technology: Investing in environmental technologies on board and investing in propulsion technologies with conversion capabilities for future fuels.

• Infrastructure: Reducing emissions at berth by partnering with cities and ports on responsible tourism and utilising shoreside electricity. Plugging in at ports can reduce emissions by up to 98%. There are 33 active ports globally with at least one berth with shore power, with another 42 in planning.

• Operations: Digitalisation, reducing waste and energy loads, and optimising routing and itinerary planning.

Cruise lines are investing billions in new ships designed for fuel flexibility, ready to use low to zero-GHG fuels like green methanol, bioLNG, synthetic LNG, hydrogen fuel cells, and even solar and wind power as they become available at scale. New ships currently in development will really be at the cutting edge of so much innovation.

Significant Economic Contribution

In 2023, the total economic impact of cruising reached $168.6 billion, the highest on record. This activity supported 1.6 million jobs globally, contributing $85.6 billion to global GDP. More than 75% of jobs supported by cruise activity are generated by onshore activities, particularly at ports. Furthermore, cruise passengers significantly impact the local economy before and after their cruise. 60% of passengers stayed one or more nights in the port city prior to embarking in the last 12 months.

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In summary, the CLIA "State of the Cruise Industry Report 2025" paints a picture of a vibrant, growing, and increasingly sustainable sector that is successfully attracting increasingly diverse traveller demographics while delivering significant economic benefits worldwide. You can view the original report at this link: CLICK HERE

So, if you are a brand or operator thinking of entering, or expanding into the cruise industry, this report shows that there has never been a better time to consider expansion. But it's not easy! We are here to support you become 'Ocean Ready' with expert guidance on how all this information is relevant for cruise retail and the specific areas you should be focusing on. Please visit my consultancy website or our corporate page to see the unique services the Cruise Retail Academy can offer you to help take part in the strong potential of the global cruise retail business. Let's sail together!