The COVID-19 pandemic caused a serious decline in the cruise industry. As a whole, the industry dipped below $2 billion in sales in 2021. However, it seems like cruise ships are on the rebound. Many people see the all-inclusive nature of a cruise as a way to save money on vacation. More importantly, heading out on a cruise seems to be cheaper than booking a hotel. So, let’s take a look at this trend and see if there’s any validity to it.
Interest in Cruises is on the Rise
Despite its significant dip during the pandemic, the cruise industry has started to recover. Last year, revenue in the industry hit $23 billion. Considering just three years ago those figures dipped under $2 billion, that’s pretty impressive. That said, there are some things impacting the industry’s comeback. First and foremost, interest in cruise vacations in the United States has increased from 2022 to 2024. One survey found that 42% of respondents reported being interested in a cruise in 2022. Just two years later, that has increased to 60%.
In 2022, direct spending on cruise line purchases in the United States was under $15 billion. That was up significantly from 2021 when only $6.3 billion was spent. During that same period of time, cruise passenger spending went up 8x.
Making Cruises More Appealing Post-Pandemic
Now that we’ve looked at the numbers, what is causing this rebound in the cruise industry? Undoubtedly, some of it has to do with recovering from the pandemic. Many businesses were negatively impacted, especially in the travel industry. As the world gets back to normal, the cruise industry is seeing positive impacts on revenue overall.
That said, a 2024 survey said that cruises would be even more appealing if vacationers were offered promotions and discounts. Many cruise lines have started going just that. As more deals are available, cruises are sure to continue to increase in popularity.
Hotel Prices vs. the Price of a Cruise
The biggest factor weighing on the rebound of the cruise industry in 2024 is, well… the price of everything else. Patrick Scholes, a travel and leisure analyst at Truist, told CNBC that, “Cruise companies are having a moment right now.” Although prices are high, with averages around $259 per person per day, it is still cheaper than other lodging options.
Hotels, for instance, cost anywhere between $150 and $400+ per night, depending on if you are staying in a budget or luxury hotel. On top of that, you will have to find something to do outside of your hotel. Cruise ships, on the other hand, have food and a multitude of activities included. You might try to opt for an Airbnb to save some money, but it likely won’t be much. The average cost of a one-bedroom Airbnb rental is $114 per night. Again, you’ll have to plan out other activities.
The Cruise Industry is Far From Dead
While the future of the cruise industry looked bleak at one time, it has been on the rise again for some time. Carnival, one of the most popular cruise lines, has confirmed that its cumulative advanced booked positions for 2025 are already above the previous 2024 record. Nearly half of next year is already booked and the cruise line will be expanding its destinations with an all-new island, Celebration Key.
So, the end of cruises is far from near. Actually, they’ve become preferable to other types of lodging. Do you agree? Are you planning any cruises in the near future?