Cruise tourism is a huge business industry, according to a certain study, prior to the COVID-19 pandemic in 2020; the cruise industry across the world hosted 29.7 billion passengers. This generated jobs for nearly 1.8 billion individuals across the globe and gave approximately US$ 150 billion to the world’s economy.
Cruise Tourism Market Historical Analysis (2018 to 2022) Vs. Forecast Outlook (2023 to 2033)
The global demand for cruise tourism market is projected to increase at a CAGR over 12% during the forecast period between 2023 and 2033, reaching a total of US$ 4.6 billion in 2018, according to a report from Future Market Insights (FMI). From 2018 to 2022, sales witnessed significant growth in the global cruise tourism Market, registering a CAGR of 8.3%.
The global cruise tourism market is said to grow exponentially during the forecast period due to the increasing disposable income of individuals along with the latest development in the cruises’ facilities and offers onboard.
More pioneering services, themes, amenities, etc., that are offered in many cruise liners nowadays are anticipated to propel the demand for the cruise tourism market during the forecast period. Several cruise companies these days are offering services such as in-room spa treatments, skydiving simulators, adventurous activities, water coasters, etc., these activities are said to attract tourists and are anticipated to escalate the share of footfalls in the future.
Remarkable Expansion of the Cruise Industry in Emerging Areas
One of the key aspects influencing the cruise tourism business is the expanding cruise industry. Several businesses are emerging, offering a range of amenities to draw clients to meet the need for maritime cross-border travel. The infographic claims that in December 2022, 239 ships entered commercial service, a 15-fold increase over December 2021.
The top 10 cruise brands account for 105 of the 239 cruise vessels that will depart in December. MSC Cruises, having 13 active ships along with 50,326 beds, is ranked first on the list, followed by Carnival Cruise Line having 17 ships along with 54,364 berths, and Royal Caribbean International having 20 sailing ships along with 71,800 berths. Immense growth in the sector as these is anticipated to open up new opportunities in the market in the years to come.
Others Factors that can have a Positive Impact on the Growth Curve
There is an increasing demand for cruise tours amongst individuals of all age groups, as there are multiple fun activities for every age group. New inventive ships are being launched with the latest technologies coupled with more onboard fun for travelers to attract larger crowd. These factors positively impact the cruise tourism market growth.
A sudden increase in the popularity of cruise tourism in emerging countries is anticipated to generate robust opportunities for all cruise service providers worldwide during the forecast period. Several cruise companies are planning to expand their business in these regions in order to capture untapped markets of developing economies. These companies launch exclusive offers and attractive discounts to drive the sales of their cruise businesses.
The cruise tourism sectors’ trends are significant as they are said to experience complete power go-ahead mode distinguished by trends such as group-oriented cruises, advancements in cruise ships, generating novel experiences, culinary delights, etc.
One of the largest growing sectors in the tourism industry is the cruise industry. Even during the time of economic recession in the 2000s, the cruise industry steadily grew. The demand for cruise tourism continues to expand and growth into new destinations. There is a considerable increase in repositioning cruises, meaning moving a cruise ship from one destination to another. The tourists’ interest in such repositioning inculcates exploration of new destinations and their price advantage as compared to regular cruising. Cruising is extremely popular across all generations, it is no longer meant just for the adult population.
Severe Weather Conditions may have a Serious Impact on the Market
The cruise tourism segment is inspired by several macroeconomic factors, i.e., the consumer’s sureness is affected by the financial crisis. There are many natural disasters that cannot be controlled by us, humans. These factors pose a threat to the global cruise tourism market. A possible reason which affects the growth of this market is the presence of pirates in the Gulf of Aden and several other areas.
Another crucial factor that affects the cruise tourism market is the condition of the crew members. Passengers are given best privileges and facilities at the crew members’ expense. This leads to low social security, and low salaries for the crew onboard a cruise ship.
Category-wise Insights
River Cruises are anticipated to hold a Significant Market Share in 2023
In 2022, the river cruises segment by tourism type was estimated to hold over 35% market share. It is projected that river cruising, which allows passengers to take in the landscape along the banks, would have a beneficial effect on the market during the course of the projection period.
Onboard features on river cruises are many. Staterooms are often river-facing and have hotel-style beds, private bathrooms, refrigerators, individual climate controls, safes, and TVs. Higher cabin grades may have French balconies, verandas, and separate bedroom and sitting rooms. A room can range in size from 150 to 600 square feet. The crew members onboard deliver exceptional, customized service to visitors. Additionally, ships provide free WiFi, eating options, pubs, and lounges. There are stores, sun decks, swimming pools, and libraries on certain ships. The aforementioned amenities draw a sizable number of visitors, fueling the market expansion of the river cruise segment.
Market Competition
The key players in this market include:
- AmaWaterways LLC
- Ambassador Cruise Holidays Ltd.
- American Cruise Lines, Carnival Corp., and Plc
- Compagnie du Ponant
Key players operating the cruise tourism market are adopting innovative growth strategies and some of the key developments in the cruise tourism market are:
In March 2019, Italian shipbuilding giant Fincantieri launched the Costa Venezia, a massive new cruise ship with a capacity of over 5,200 guests. With 135,500 tons and 323 meters in length, the Costa Venezia will be the largest-ever ship introduced by Costa to the Chinese market.
In June 2022, Carnival Corp.’s Carnival Cruise Line collaborated with Costa Cruises, which is Italy’s favorite cruise line by creating a novel concept for Carnival’s North American guests when Costa by Carnival debuts in the spring of 2023 and Costa Venezia joins the Carnival fleet sailing from New York. Costa Venezia will be followed by Costa Firenze arriving in the spring of 2024 to sail from Long Beach.
In November 2022, the prestigious Ganga Vilas project in India was unveiled. It calls for the launch of a cruise service with a 4,000-kilometer travel route. Starting in 2023, the luxury vessel will travel from Varanasi in Uttar Pradesh via Dibrugarh in Assam through Bangladesh.
In 2022, the India-based business Cordelia Cruises said that it would spend more than US$ 1 billion by 2025 to buy at least three cruise ships in order to focus on the Indian market, which boasts the third-longest coastline in the world at 7,500 km. The government’s prediction of a 10-fold increase in the sector over the following ten years is consistent with Cordelia Brand’s optimistic view.
These insights are based on a report on cruise tourism industry by Future Market Insights.
