Cruise Lines Ride 35M Passenger Wave as Gen Z and Millennials Ditch Resorts for Sea
Hotels are full of fees, airlines full of delays — but cruises? They’re full of Gen Z and millennials sailing the seas. The sector welcomed nearly 35M travelers in 2024, marking a ~10% year-over-year jump even as broader travel spending faltered. Younger travelers are boarding in droves, having discovered that ocean vacations deliver better bang for their buck.
- American households spent 9% more on cruises this September compared to last year, even as overall travel expenditures dropped 2% due to declining hotel and airline bookings.
- Royal Caribbean GroupRCL, CarnivalCCL, and Norwegian Cruise LineNCLH have all raised their annual profit forecasts, banking on the momentum.
Awaiting the storm: Travel agents are reporting softer bookings as inflation and uncertainty hit budgets, and cruise executives are responding by trying to pull more revenue from each passenger — a shift that could erode the affordability that drew Gen Z and millennials. The industry still has cost advantages, from cheaper global labor to private islands that dodge port fees and overtourism backlash. The question now is whether cruise lines can keep the wave going or end up pricing out their newest fans.