Cruise Tourism Market

SKU: DMFMCG1952 | Last Updated On: Nov 24 2022 | Available Formats

> Cruise Tourism Market Expected to reach a high CAGR of 10.4% By 2029 | DataM Intelligence

Cruise Tourism Market is segmented by By Type (Ocean Cruising, River Cruising), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

Cruise Tourism Market size was worth around US$ XX million in 2021 and is expected to record significant growth by reaching up to US$ XX million by 2029, growing at a CAGR of 10.4% within the forecast period (2022-2029). 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 2022- 2029.

Cruise Tourism Market - Strategic Insights

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

The tremendous growth in the cruise industry in developing regions is boosting the market share of the cruise tourism industry. Rising disposable income creates growth opportunities for cruise tourism to grow in the forecast period.

The tremendous growth in the cruise industry in developing regions is boosting the market share of the cruise tourism industry

The growing cruise industry is one of the important factors driving the cruise tourism industry. Various companies are coming into existence to overcome the demand for across-the-border travel via sea with various facilities to attract customers. According to the infographic, 239 ships came into commercial operation in December 2021, up 15 times from that month's figure for December 2020. Of the 239 cruise ships that will set sail in December, 105 are represented by the top 10 cruise brands. The top three on the list are MSC Cruises, 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.

Furthermore, due to the global pause in cruise operations in mid-March 2020, cruises again resumed sailing in some parts of Europe, Asia and the South Pacific beginning in July 2020. There were more than 200 sailings from the beginning of July to the middle of December 2020. The success of these first trips shows that the new protocols effectively reduce the danger of COVID-19 to passengers, crew members and the places cruise ships stop. In 2022, the sector is expected to resume in the Caribbean, Canada, Mexico and other countries.

Thus, when the world struggled to fight the coronavirus, the cruise industry managed to revive its market, thus creating huge growth opportunities for cruise tourism to grow in the forecast period. According to Cruise Lines International Association 2021 data, US$23.5 Billion was Invested in ships with advanced technologies and cleaner fuels to reduce carbon emissions, a 40% Target Rate of reduction in carbon emissions by the end of 2030, compared to 2008 and 24 Ships On order book through 2027, committed to being powered by liquified 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

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.

Segment Analysis 

The global cruise tourism market can be segmented on passenger strength, cruise capacity, cruise type and region.

River cruising is an extremely relaxing, immersive and thoroughly enjoyable form of travel where the traveler can enjoy the scenery along the banks, which is expected to impact the market over the forecast period positively.

The global cruise tourism market is segmented by ocean cruising, river cruising, singles or solo cruises, family cruises, adults-only and couples cruises, luxury cruises and adventure cruises. River Cruise in the global cruise tourism market has reached US$ XX million in 2021 and is estimated to grow at a CAGR of XX% over the forecast period to reach US$ XX million by 2029.

River cruising is an extremely relaxing, immersive and enjoyable form of travel where the traveler can enjoy the scenery along the waterways, including the Seine, Douro, Danube, Rhine, Volga and Yangtze. A river cruise offers various benefits, such as-

  • It is a form of peace travel that takes guests along inland waterways.
  • Usually, there are many port stops throughout each passage.
  • The river cruise can carry anywhere between 100 to 250 guests, depending on the ship's size.
  • Typical river cruises journey often last longer than a week.

Furthermore, the onboard amenities on river trips are numerous. Staterooms have hotel-style mattresses, private bathrooms, individual climate controls, refrigerators, safes and TVs and are frequently river-facing. French balconies, verandas and separate sleeping and living areas may have higher cabin classifications. A room can be 150 to 600 square feet in size. The onboard personnel provides outstanding and individualized service to guests. Ships also have complimentary WiFi, dining options and bars and lounges. Some ships have shops, swimming pools, sun decks and libraries. Thus, the facilities mentioned above attract large numbers of customers, boosting the river cruise segment's market growth.

Geographical Analysis

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.

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.

Frequently Asked Questions

What is the Growth Outlook for the Cruise Tourism Market?

The growth outlook for the cruise tourism market is predicted to advance at a CAGR of 10% from 2022-to 2029.

Which Region Leads the Cruise Tourism Market?

The North American, European, and Asia-Pacific regions are anticipated to lead the cruise tourism market during the forecast period.

How much Growth Potential does the Cruise Tourism Market Hold?

The cruise tourism market is likely to hold a valuation of US$ billion by 2029.

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