The Cruise Industry Is Set to Double Its Value by 2028

Like all travel industries, cruising was hit hard by the pandemic. And despite restrictions lasting longer in cruising than in hospitality or aviation, its rebound has been meteoric.

A new report by market intelligence company Grand View Research, Inc. values the cruise industry at $7.67 billion in 2022 but anticipates significant growth over the next six years. By 2028, the company predicts the cruise industry to be valued at $15.1 billion with a compound annual growth rate (CAGR) of 11 percent.

The report cites multiple factors that will contribute to that growth. The established cruise companies in the field, such as Carnival Corporation & Plc. and Royal Caribbean Group, have been attracting new audiences with incentives like themed sailings and multi-generation family packages. 

The plan seems to be working so far. Per the Cruise Lines International Association (CLIA), 58 percent of international cruisers are first-timers.

But it's not only the ocean cruise sector that will contribute to the industry's growth. The report suggests that river cruising will grow most over the next six years. Like the big ocean cruise lines, river cruise lines are also finding ways to attract new customers. Uniworld River Cruises, for instance, has launched a series of "mystery cruises," in which passengers aren't told where they're heading until they're at the airport. One mystery cruise offered in 2023 sold out in just 48 hours.

The demographic of cruisers will change over the six years, too. In 2022, North Americans comprised nearly 50 percent of the market, with Europe following around 25 percent. But the Asian market is being incentivized to book cruises. In India, the government reduced berth charges by 70 percent in 2020 to encourage more cruise tourism.

Gen Z is also a factor. Over the next six years, the generation is expected to spend increasing money on leisure travel, including cruising. CLIA anticipates Gen Z to eclipse Millennials as the top consumers of cruise travel. As Gen Z places increased value on sustainable tourism, they're turning to smaller cruise lines for more environmentally friendly and "authentic" experiences, which should spur growth in that sector through 2028.

Passenger counts dropped 80 percent during the pandemic, but it seems that the setback was short-lived—cruising is ready to make an extraordinary comeback.