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Gen Z and millennials now make up almost 50% of cruise guests. The industry has noticed and is tailoring its experiences and marketing to maintain the post-pandemic rebound.
The word cruise once conjured images of naff buffet halls, a struggling cabaret singer, and pensioners cooking in the sun out on deck. Yet the data shows the tide may be turning, generationally speaking.
Millennials now account for as much as 22% of cruise passengers globally and Gen Z makes up for 14%. Almost 20% of people aged 25-to-34 took a cruise in the past 12 months, compared with less than 5% before the pandemic, and 81% of this bunch plan to return for another cruise again.
You’d be forgiven for thinking the cruise as a leisure activity was rapidly on its way out. The industry haemorrhaged roughly 59% of its total economic value between 2019 and 2020 and cruise-related jobs fell from 1.16 million to 576,000 in this period. The reason being… you guessed it, the pandemic.
On the contrary, however, cruises rebounded faster and more dramatically than most tourism activities. 2024 saw a 10% boon in passengers amounting to 35 million globally, and even as overall travel spending took a knock, US households spent 9% more on booking cruise holidays. As of today, flagship companies like Royal Caribbean boast profits 10 times above their Covid lows and values in the late tens-of-billions.
@issymontenegro2 10000000 miles away #foryou #cruise #sunset #viral ♬ original sound – Tianna Robillard
What exactly has ignited this newfound urge to go cruising for Gen Zers and Millennials, I hear you ask? And no, it’s not about sailing away from our responsibilities.
It’s a myriad of factors, but none are more significant than the value on offer. With cost of living, rent, and student loans coming on top, the prospect of soft saving for a cruise suddenly sounds appealing. The prices of cruises have also been hiked by inflation (24% since 2019), but markedly less so than hotel rooms. Staying in the Caribbean, for instance, which is traditionally a vastly popular cruise destination, means booking a resort at a 59% premium since Covid.
For younger travellers who want to experience luxury without an extortionate mark-up, cruising offers an inclusive price at a time where everything is beginning to feel unattainable. It speaks to the spontaneous nature of younger people and their desire to cram novel experiences into their adult years, while offering convenience and a comforting base to sweat out the hangover.
