The global cruise industry is experiencing rapid growth both in terms of fleet size and number of customers. To keep up with this capacity expansion, the industry estimates that it needs to attract 4 million new customers. In order to achieve this, cruise lines are focusing their efforts on appealing to Gen Z and Millennial travelers.
Before Royal Caribbean’s Icon of the Seas was completed in Finland, the world’s largest cruise ship was built on the popular video game Fortnite. Called “Hide ‘N’ Sea,” this candy-colored game allowed players to digitally explore the ship. Royal Caribbean International’s Chief Marketing Officer, Kara Wallace, stated that this innovative approach aimed to tap into the younger generation who are avid Fortnite players.
This unique video game installation is just one example of how the cruise industry is actively targeting younger generations and aiming to shed its reputation as a vacation option solely for retirees. From creating adults-only cruise lines to listing ships on real estate platform Zillow for $10 million, the industry is fully committed to attracting Gen Z and Millennial travelers.
According to the Cruise Lines International Association (CLIA), in order to meet capacity forecasts, the industry needs to convince 4 million people to take their first cruise by 2025. Over the next five years, cruise capacity is projected to increase by anywhere between 19% and 43%. This growth is fueled by the addition of new ships, with an estimated 60 ships being added to the global cruise fleet in the next five years. Moreover, these new ships are continuously getting larger. For example, Royal Caribbean’s Icon of the Seas, which just finished construction, will be the world’s largest cruise ship, capable of accommodating up to 7,600 passengers and 2,350 crew members.
Despite efforts to attract younger travelers, the average age of cruise passengers remains relatively high at 46.5 years old. Approximately 65% of cruise passengers are over 40 years old, with around one-third being over 60 years old. However, there is still interest among Millennials in taking their first cruise. According to CLIA, 77% of Millennial travelers who have never been on a cruise before expressed interest in a cruise vacation. Furthermore, 88% of Millennials who have cruised before plan to cruise again. This trend is being reflected in the cruising industry, with Royal Caribbean International reporting an increase in both Gen Z and Millennial passengers.
Cruise lines are adapting their offerings to cater to the preferences of younger travelers. For instance, Holland America Line added pickleball courts to all its cruise ships after being named the official cruise line of the Professional Pickleball Association in 2022. Additionally, Virgin Voyages, an adults-only cruise line, launched in 2021 with a focus on wellness and entertainment options that appeal to Millennials. The line offers amenities like outdoor yoga studios, vegetarian restaurants, live DJs, and drag shows. Plus, free WiFi is available, which is important for the Instagram generation.
The popularity of cruising among Millennials can be attributed to its relative affordability and convenience compared to other forms of travel. Travel consultant Sonia Bhagwan explains that cruising allows travelers to visit multiple destinations without having to pack and unpack multiple times. This all-inclusive nature offers a great value for the cost and aligns with the trend of “bucket list travel.”
While the cruise industry has experienced challenges such as norovirus outbreaks, man-overboard incidents, overbooked ships, and pushback from environmentalists and port towns, these concerns seem to be outweighed by the potential for onboard boredom among younger, inexperienced cruisers. Overall, the cruise industry is poised for growth and is actively working to attract and cater to younger generations of travelers.
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