Market Overview
Cruise Tourism Market is estimated to grow at a CAGR of 10.4% within the forecast period (2024-2031).
Cruise tourism is a luxury type of travel that involves an all-inclusive vacation on a cruise ship for a minimum of 48 hours with a planned itinerary that includes stops at various ports or towns. Cruise ships are among the world's largest by interior volume, larger than many cargo ships and may carry thousands of passengers on a single trip. Currently, cruise tourism includes a wide range of amenities, significantly improving traveler comfort and enjoyment when traveling by sea. Cruise tourism comes in association with marine resorts, competing with conventionally marketed destinations and offering tourists an alternative form of holiday, which is boosting the market share of the cruise tourism industry.
China and India are growing countries in cruise tourism and are expected to show exponential growth in the forecast period on a global scale. However, U.S., with its long coastlines and access to various nearby ports in the tropical Caribbean Sea, has shown some promising numbers in the cruise tourism industry, thus making it to be the global leader Cruise Tourism Market study analysis offers an in-depth outlook on the market containing quantitative and qualitative data. It gives an outlook and forecast of the global market based on market segmentation. It also provides global Cruise Tourism Market size, and growth, along with the latest trends, opportunities, and forecast till 2029 for the global market with esteem to major countries such as the United States, Canada, Brazil, Germany, Italy, Spain, United Kingdom, Russia, European countries, United Arab Emirates, Saudi Arabia, South Africa, Japan, China, India, South Korea, Australia, and rest of the countries over the globe.
Among all regions, the North American region is expected to hold the largest share of the global market over the forecast period. Cruise Tourism Market in the United States and Canada produces the utmost share. Whereas the European Cruise Tourism Market is projected to continue its presence globally during the period of 2024-2031.
Market Summary
| Metrics | Details |
| Market CAGR | 10.4% |
| Segments Covered | By Passenger Strength, By Cruise Capacity, By Cruise Type, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Market Dynamics
Tremendous Growth in Cruise Industry in Emerging Regions
Cruises are becoming increasingly popular for family holidays and group travel since they offer a variety of amenities and activities ideal for all age groups. Cruises provide a simple option for families to satisfy varied interests and preferences on a single trip. The rising cruise industry is a major driver of the cruise tourism industry. Several companies are emerging to meet the need for cross-border sea travel, with a variety of services to entice customers.
International cruise companies such as Royal Caribbean and Princess Cruises, as well as domestic firms, are stepping up their marketing efforts in India. Targeted advertising have increased knowledge of cruise alternatives, itineraries and perks, attracting a larger audience to the industry.
In accordance to the infographic, 239 ships entered commercial service in December 2021, a 15-fold increase from the same month in 2020. The top ten cruise brands comprise 105 of the 239 cruise ships that will set sail in December. MSC Cruises leads the list with 13 active ships and 50,316 berths, followed by Carnival Cruise Line with 17 ships and 54,354 berths and Royal Caribbean International with 20 sailing ships and 71,700 berths.
When the entire world struggled to combat coronavirus, the cruise sector was able to revive its market, producing massive market growth potential for cruise tourism in the foreseeable term. In accordance with Cruise Lines International Association 2021 data, US$ 23.5 billion was invested in ships with technological advances and cleaner fuels to reduce carbon emissions, representing a 40% reduction in carbon emissions by the end of 2030 compared to 2008 and 24 ships on order through 2027 that will be powered by liquefied natural gas (LNG).
The high cost of travel hurdle the market growth of the cruise tourism industry
Cruise tourism has seen immense growth in the past few years and is expected to maintain growth in the forecast period. However, the high cost associated with the service is a major factor hurdling the market growth. In the Caribbean, Alaska and Europe, cruise prices seem to be rising for the second half of 2022 and 2023, but not due to U.S. inflation rate, which peaked at 7% in December 2021 for the higher fares. According to cruise industry experts, pent-up demand and low occupancy are the major reasons your next cruise holiday may cost more. Some cruise lines' transition to more all-inclusive pricing models, Young continues, has also had an impact on rates. For instance, Celebrity Cruises now includes cocktails, WiFi and gratuities in cruise prices. According to Mike Driscoll, publisher of the trade publication CruiseWeek, travel planners report higher costs on popular routes, including some summertime trips in Alaska, but not universally.
However, It's not like lower fares don’t exist at all, especially on bigger and older ships. For instance, booking a week on Carnival Vista out of Galveston costs around US$300 and Royal Caribbean offers one-week Alaska cruises on its Serenade of the Seas out of Vancouver starting at US$439 (the prices drop to under US$400 in September). Thus cruises are available at a cheaper cost but with less facilities and a bigger crowd, which reduces the privacy and comfort of the customer.
COVID-19 Impact Analysis on Market
The COVID-19 pandemic brought on by the brand-new coronavirus SARS-CoV-2 has resulted in more than 5 million deaths that have been confirmed, severely disrupting many aspects of the global economy. Due to the closing of international borders and the decline in international travel, the tourism industry was one of the worst affected. The COVID-19 outbreaks on several cruises early in the pandemic led to stranded ships because of port closures and the temporary prohibition on cruises in some countries, negatively impacting cruise tourism. Some cruise ship passengers who were going home helped the virus spread there.
For instance, as of the end of April 2020, one in ten COVID-19 cases in Australia was linked to a Ruby Princess cruise. Between February and the middle of March 2020, almost 17% of the verified cases in U.S. were connected to cruise passengers who had just returned.
According to official and unofficial counts, as of October 2020, there were at least 3908 verified COVID-19 cases and 111 confirmed deaths connected to over 102 COVID-19 outbreaks involving at least 124 cruise ships. The largest three cruise lines in the world include Carnival Corporation, Royal Caribbean and Norwegian Cruise Line, which carry 80% of the market's passengers, all experienced outbreaks aboard their ships. Due to the pandemic, these cruise lines also experienced financial problems, with their stock prices plummeting in the first quarter of 2020.
Market Segmentation - By Cruise Type
- River cruise segment in the global cruise tourism market value was at XX US$ Million in 2023 and is estimated to reach XX US$ Million by 2031, growing at a CAGR of XX% during the forecast period from 2024-2031.
- River cruising is a relaxing, immersing and truly delightful mode of transportation that allows travelers to experience the landscape along the banks of waterways such as the Seine, Douro, Danube, Rhine, Volga and Yangtze. Unlike massive ocean cruises, river cruises often use smaller vessels, resulting in a more intimate and personalized vacation experience. This trend appeals to tourists looking for less congested, boutique-style experiences with more personalized services, which frequently include local cuisine, cultural acts and tours.
- Furthermore, river cruises offer a wide range of onboard amenities. Staterooms have hotel-style mattresses, private bathrooms, individual climate controls, refrigerators, safes, and televisions, and are frequently river-facing. French balconies, verandas, and separate sleeping and sitting rooms may receive higher cabin grades. A room can range from 150 to 600 square feet in size.
- The onboard staff gives exceptional and personalized service to guests. Ships also include complimentary Wi-Fi, dining options, and pubs and lounges. Some ships have shops, swimming pools, sun decks and libraries. Thus, the facilities mentioned above attract a large customer, boosting the river cruise segment's market growth.
- In 2024, AmaWaterways, a luxury river cruise line, has announced that it would extend its popular pre- or post-cruise Complimentary Land Package offer on certain Europe itineraries in 2024 and 2025. The complementary Land Package offer is available for new reservations booked through June 30, 2024. It offers visitors a choice of 20 complementary two-, three- or four-night land packages as an extension of their river cruise holiday.
Market Geographical Share
Asia-Pacific is expected to grow significantly in the global cruise tourism market due to the higher demand from emerging nations, including India and China.
Asia-Pacific Cruise Tourism market was valued at US$ XX million in 2021 and is projected to grow at a CAGR of XX% over the forecast period to reach US$ XX million by 2029. Asia- Pacific is expected to grow significantly in the global cruise tourism market due to the higher demand from emerging nations, including India and China. Since the beginning of 2006, China's annual growth for cruise tourism has surpassed nearly 40%t. In fact, as per the Shanghai International Shipping Institute, China is anticipated to flourish and become the biggest cruise market globally by 2030.
There are numerous ports available to the Chinese cruise industry along its coastline. The top cruise ports include Shanghai Baoshan, the most active port on China's Mainland. It services mostly the fleets of Carnival, Royal Caribbean and MSC, making up around 60% of all cruise traffic in China. Shanghai Baoshan handled 512 port calls in 2017. A new terminal added to the port's expansion in 2018 should allow it to handle 1,000 cruise calls or 6 million passengers by the end of 2023. The port mostly serves routes to Japan or Korea on a global scale. Domestically, Yangtze River cruises that typically stop in Wuhan or Chongqing frequently arrive or depart from Shanghai Baoshan. The port of Tianjin, which is situated in northern China and adjacent to Beijing, is another important cruise port in mainland China.
Major cruise lines like Royal Caribbean, Princess and Costa Asia operate from Tianjin. The port of Tianjin handled a total of 175 cruise calls in 2017, carrying 940,000 passengers. Most cruises travel between ports in Japan, like Nagasaki or Fukuoka. Thus the presence of top cruise ports in the region accelerates the opportunities to attract travelers and increase cruise tourism percentage. Furthermore, top companies such as Viking Cruises, Seabourn, Cunard and Silversea create market growth opportunities for the industry.
Companies and Competitive Landscape
The cruise tourism market is highly competitive with the presence of local and global companies. Some major companies contributing to the market's growth are Carnival Corporation & PLC, Disney Cruise Line, MSC Cruises, Norwegian Cruise Line Holdings Ltd, Royal Caribbean International, AIDA Cruises, Marella Cruises, Saga Cruises, Mediterranean Shipping Company (MSC), Viking Cruises and others.
The major companies are adopting several growth strategies, such as product launches, acquisitions and collaborations, contributing to the global cruise tourism market growth.
- In 2019, The Bellona Foundation and Carnival Corporation & plc and nine global cruise line brands signed an agreement of cooperation where the parties aim to work together to continue improving environmental and sustainability impact.
Carnival Corporation & plc
Overview: Carnival Corporation & Plc is a U.S.based cruise operator with a fleet of over 100 vessels across 10 cruise line brands. The company's global cruise line brands portfolio includes Princess Cruises, Holland America Line, Carnival Cruise Line, Seabourn, P&O Cruises (Australia), AIDA Cruises and P&O Cruises (UK), Costa Cruises and Cunard.
The top tour operator in Alaska and the Canadian Yukon, Holland America Princess Alaska Tours, is run by Carnival Corporation. With a record full-year sales of US$20.8 billion in 2019, Carnival Corporation would rank 160th on the Fortune 500 list. Carnival Corporation is placed No. 94 on the Forbes list of America's largest public corporations and No. 312 on the Forbes Global 2000 of the largest public firms in the world.
Product Portfolio:
- Carnival Cruise Line: Carnival Cruise is a popular brand of Cruise Line that offers service to millions of guests every year. •A Carnival cruise offers day and nighttime entertainment like musical performances, deck parties, stage shows, casinos and more.
- Every American coast offers 2- to 23-day trips on 23 ships. At the same time, Caribbean cruises are the specialty, which sails to other fascinating and exotic locations, including Mexico, Alaska, The Bahamas, Europe and Hawaii. Additionally, Carnival Cruise Line Australia operates two ships and provides cruises to New Zealand and the Pacific Islands from Sydney and Brisbane.
Key Development
- On June 22, 2022, Carnival Cruise Line teamed up with Costa Cruises – an Italy-based cruise line, to create a new concept for Carnival’s North American guests when COSTA by CARNIVAL is launched in the spring of 2023 and Costa Venezia joins the Carnival fleet sailing from New York. In 2024, Costa Firenze will follow Costa Venezia and depart from Long Beach.
