Insights on Travel Trends in 2021 and Beyond
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2020 North American cruise passenger volume decreased
by 80.8% from 2019, but 2021’s volume decreased by
84.7% from 2019. The average cruise duration of North
American passengers was 6.4 days during 2021,
compared to 6.9 days during 2019.
The average age of North American passengers during
2021 was 49.1, compared to 45.7 for 2019, indicating
older North Americans, more of whom had received
multiple vaccinations, felt a cruise was safer than younger
North Americans.
With many Americans concerned about the COVID-19
Delta variant, 1.66 million of the total 2021 US passenger
volume of 2.17 million sailed to the Caribbean, Bahamas
and Bermuda; 209,400 to the North American West coast
and Mexico; and 119,100 to Alaska.
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Cruise Lines International Association (CLIA) forecasted
its global cruise passenger volume index for 2022 will
reach 95 (with 2019 volume as the baseline of 100).
2023’s projected index of 108 will exceed 2019.
During 2021 and into early 2022, most cruise lines had to
offer substantial discounts to lure passengers back to
ships. As those discounts have had their desired effect,
industry analysts expect Q4 2022 fares to increase by
mid-single digits and exceed 2019 fares.
The CLIA reports “approximately 60% of cruise-related
businesses and organizations are hiring” as 272 ships
were expected to sail during 2022, including 16 new ships,
with an average passenger capacity of 2,126.
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Results from the survey for the 2022 Portrait of American
International Travelers report conducted by MMGY Travel
Intelligence revealed affluent Americans will account for the
largest increase in international travel during 2023.
Although affluent Millennials said they were planning more
average international trips during 2023 than Baby Boomers
or 5.7 and 1.5, respectively, affluent Baby Boomers’ average
spending for those trips will be $7,725, compared to $3,564
for Millennials.
The survey respondents said their favorite international
destinations will be Europe, the South Pacific, the Caribbean
and Canada. They also preferred less-visited destinations
and those with many outdoor recreational options.
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Morning Consult’s The State of Travel & Hospitality
report also indicates most international travelers during
the next year will be affluent. Of those with incomes of
$100K, 17% said they had money saved for their trips,
compared to all US adults at 14%.
Higher-income US adults are also “somewhat” or “very”
comfortable traveling as any COVID concerns have
declined substantially: 79% of those who have traveled
for leisure during the past year, 77% with incomes of
$100K+ and 75% of those with incomes of $50K–$99K.
Another Morning Consult report, Are We There Yet?,
stated 6% of all US adults said they took 1 or 2 cruises
during the past year, but 9% of parents with children
younger than 18 had taken 1 or 2 cruises during the
past year with their children.
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Cruise lines became experts at developing and managing
COVID-19 protocols. Despite almost two-thirds of cruise
travelers being unconcerned about taking a cruise, cruise
lines continue to offer testing, contactless technology and
other sanitation methods.
To achieve net carbon neutrality by 2050, cruise lines that
are CLIA members are committed to advanced recycling
protocols, waste-to-energy initiatives, energy-efficient ship
design and the use of alternative fuels.
According to the CLIA, there will be 26 LNG-powered
cruise ships, 231 cruise ships with advanced wastewater
treatment systems, 174 cruise ships with shoreside power
connectivity and 176 cruise ships with exhaust gas
cleaning systems by 2027.
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Many cruise line executives report their 2023 and future
cruise bookings are almost full. A recent survey found
land-based vacations can cost $1,500 to $6,400 more
than an equivalent cruise, which is another cause of
increased bookings.
Norwegian Cruise Line Holdings expect 100% occupancy
in most of its ships by summer 2023. Royal Caribbean
Group achieved 96% occupancy during Q3 2022 and
anticipates historical occupancy levels by spring 2023.
Disney Cruise Line reports five ships will be sailing the
Caribbean, Bahamas and the East and West coasts of
the US. Disney recently acquired the former Global
Dreamer, which will be redesigned and launched during
2025, and Disney Treasure will launch during 2024.
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Now is the time for any business with a stake in the cruise
industry to increase their ad spending as more people think
cruising is safe, bookings on many ships are reaching 100%
capacity and discounts are coming to an end.
Older adults are still the primary cruise guest, making it
relatively easy for travel and cruise companies to reach them
on TV and with direct mail. Many of the prime cruise
audiences are interested in new destinations and those with
an emphasis on health and wellness.
OTT and AVOD streaming services in conjunction with direct
mail may be a good media mix to reach Millennials, and
especially those with children, as more of them will be
interested in family cruise vacations during the coming years.
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Cruise lines can “repair” their brand images with regular
social media posts that explain their continuation of
cleaning and safety procedures and the introduction of
new ships being built to reduce effects on the
environment and promote sustainability.
Social media is also an effective platform to promote
less-visited destinations and those with more outdoor
recreational options that are and will continue to attract
affluent Americans.
Although most Gen Zers don’t have the income to be
regular or prime cruise guests, social media campaigns
promoting discounts and more affordable three-day
cruises can attract this age group and build brand
recognition as they age.
The travel industry faced challenges in 2021, with North American cruise passenger volumes decreasing significantly. Affluent Americans are ready to travel internationally in 2023, with preferences for Europe, the South Pacific, the Caribbean, and Canada. Cruise lines are adapting to post-pandemic concerns, focusing on guest health and sustainability.
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Presentation Transcript
2021 Was Another Year of Struggles 2020 North American cruise passenger volume decreased by 80.8% from 2019, but 2021 s volume decreased by 84.7% from 2019. The average cruise duration of North American passengers was 6.4 days during 2021, compared to 6.9 days during 2019. The average age of North American passengers during 2021 was 49.1, compared to 45.7 for 2019, indicating older North Americans, more of whom had received multiple vaccinations, felt a cruise was safer than younger North Americans. With many Americans concerned about the COVID-19 Delta variant, 1.66 million of the total 2021 US passenger volume of 2.17 million sailed to the Caribbean, Bahamas and Bermuda; 209,400 to the North American West coast and Mexico; and 119,100 to Alaska.
Up Anchors for 2022 and Beyond Cruise Lines International Association (CLIA) forecasted its global cruise passenger volume index for 2022 will reach 95 (with 2019 volume as the baseline of 100). 2023 s projected index of 108 will exceed 2019. During 2021 and into early 2022, most cruise lines had to offer substantial discounts to lure passengers back to ships. As those discounts have had their desired effect, industry analysts expect Q4 2022 fares to increase by mid-single digits and exceed 2019 fares. The CLIA reports approximately 60% of cruise-related businesses and organizations are hiring as 272 ships were expected to sail during 2022, including 16 new ships, with an average passenger capacity of 2,126.
Americans Are Ready to Travel the World Results from the survey for the 2022 Portrait of American International Travelers report conducted by MMGY Travel Intelligence revealed affluent Americans will account for the largest increase in international travel during 2023. Although affluent Millennials said they were planning more average international trips during 2023 than Baby Boomers or 5.7 and 1.5, respectively, affluent Baby Boomers average spending for those trips will be $7,725, compared to $3,564 for Millennials. The survey respondents said their favorite international destinations will be Europe, the South Pacific, the Caribbean and Canada. They also preferred less-visited destinations and those with many outdoor recreational options.
More American Travel Insights Morning Consult s The State of Travel & Hospitality report also indicates most international travelers during the next year will be affluent. Of those with incomes of $100K, 17% said they had money saved for their trips, compared to all US adults at 14%. Higher-income US adults are also somewhat or very comfortable traveling as any COVID concerns have declined substantially: 79% of those who have traveled for leisure during the past year, 77% with incomes of $100K+ and 75% of those with incomes of $50K $99K. Another Morning Consult report, Are We There Yet?, stated 6% of all US adults said they took 1 or 2 cruises during the past year, but 9% of parents with children younger than 18 had taken 1 or 2 cruises during the past year with their children.
Addressing Guests Health and Sustainability Cruise lines became experts at developing and managing COVID-19 protocols. Despite almost two-thirds of cruise travelers being unconcerned about taking a cruise, cruise lines continue to offer testing, contactless technology and other sanitation methods. To achieve net carbon neutrality by 2050, cruise lines that are CLIA members are committed to advanced recycling protocols, waste-to-energy initiatives, energy-efficient ship design and the use of alternative fuels. According to the CLIA, there will be 26 LNG-powered cruise ships, 231 cruise ships with advanced wastewater treatment systems, 174 cruise ships with shoreside power connectivity and 176 cruise ships with exhaust gas cleaning systems by 2027.
Cruise Line News Many cruise line executives report their 2023 and future cruise bookings are almost full. A recent survey found land-based vacations can cost $1,500 to $6,400 more than an equivalent cruise, which is another cause of increased bookings. Norwegian Cruise Line Holdings expect 100% occupancy in most of its ships by summer 2023. Royal Caribbean Group achieved 96% occupancy during Q3 2022 and anticipates historical occupancy levels by spring 2023. Disney Cruise Line reports five ships will be sailing the Caribbean, Bahamas and the East and West coasts of the US. Disney recently acquired the former Global Dreamer, which will be redesigned and launched during 2025, and Disney Treasure will launch during 2024.
Advertising Strategies Now is the time for any business with a stake in the cruise industry to increase their ad spending as more people think cruising is safe, bookings on many ships are reaching 100% capacity and discounts are coming to an end. Older adults are still the primary cruise guest, making it relatively easy for travel and cruise companies to reach them on TV and with direct mail. Many of the prime cruise audiences are interested in new destinations and those with an emphasis on health and wellness. OTT and AVOD streaming services in conjunction with direct mail may be a good media mix to reach Millennials, and especially those with children, as more of them will be interested in family cruise vacations during the coming years.
New Media Strategies Cruise lines can repair their brand images with regular social media posts that explain their continuation of cleaning and safety procedures and the introduction of new ships being built to reduce effects on the environment and promote sustainability. Social media is also an effective platform to promote less-visited destinations and those with more outdoor recreational options that are and will continue to attract affluent Americans. Although most Gen Zers don t have the income to be regular or prime cruise guests, social media campaigns promoting discounts and more affordable three-day cruises can attract this age group and build brand recognition as they age.
