Cruise lines

The early days of the pandemic were brutal for the cruise line industry, with ships being unable to sail.

The impact was severe, with cruise passenger numbers down from 29.7m in 2019 to just 5.8m in 2020, a decline of 80%. However, despite those setbacks, the industry is forecast to fully recover by 2023.

The cruise industry now has an opportunity to rebrand itself, and entice consumers who are seeking new and exciting experiences while being conscious about their environmental footprint.

Experiential travel
Millennials are a key demographic for the cruise industry. They are most enthusiastic cruise passenger group of the future with 85% saying that they plan to cruise again, followed by 82% of Gen-X and 79% of Gen-Z.

To capture these consumers, cruise lines have been tailoring their offers to make their cruise experience unique. Themed cruises have been particularly popular amongst families, especially the Disney Cruise Line which features Disney exclusive characters, and a variety of on board activities including live performances. To enhance the Disney experience, they are working on their second private property in the Bahamas for a new Disney Cruise excursion on a 700-acre island. Working with local artists, the island will be a culturally rich experience and an opportunity for cruise goers to learn about local Bahamian culture while surrounded by nature.

Expedition cruises are another way the cruise industry can attract new customers. They offer access to some of the most remote destinations in the world enticing those who want a memorable experience. For example, Viking Cruises rolled out new expedition ships to take passengers to Antarctica (seen above) for wildlife viewing and cross-country skiing. They even have mini 6-seater submarines with 270° spherical windows – an industry first.

Responsible Tourism
With consumers becoming increasingly aware of the social and environmental impact of travelling, cruise operators need to be environmentally friendly, and positively impact the communities where they dock.

Cruise companies have aligned themselves to goals to ensure that they are operating sustainably. The Cruise Lines International Association has detailed objectives to make the industry ‘greener’; for example, by 2027 they hope to have 174 cruise ships fitted with Advanced Wastewater Treatment Systems and achieve carbon neutral cruising by 2050 by seeking solutions such as energy efficient ship designs and alternative fuels.

Carnival Cruise Line are pioneering the development of liquefied natural gas to transition the industry to using alternative fuels. In addition, they hope to support biodiversity and conservation through NGO partnerships. They aim by 2030 to have established partnerships with destinations focused on community building. By partnering with local governments, tourism organisations and community stakeholders, they can invest in the ports their cruise ships visit to support sustainable economic development, capacity management as well as preserving local traditions and cultures.

There is no doubt that the cruise industry is changing to meet the needs of experience seeking and environmentally conscious consumers. To stay relevant, cruise lines must provide lasting and innovative new experiences while also being sustainable to the environment and the communities they work with, as well as tracking the changing needs of their customer base.

Hui Wen Lim