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After a blockbuster 2023, most signs are pointing to an
equally busy new year that could meet or exceed records shattered last year.
Prices are up, space is going fast, booking windows are lengthening and
consumers are extending vacations, said a number of cruise line and
host agency executives.
A Booming Market
The cruise industry is booming and, with new products and
ships entering the marketplace, consumers will be looking at a cruise vacation
more than ever, said Drew Daly, senior vice president and general manager of
Dream Vacations, who added that more shorter itineraries can be used to
introduce cruising to first timers.
As we enter 2024, we are extremely excited for what the
booking trends are showing, Daly said. Data has shown consumers are planning
their dream vacations further out, resulting in higher average prices overall.
Consumers are also taking longer vacations. The cruise lines are also opening
up itineraries and inventory further out to respond to the consumer demand to
plan early.
Luxury and Expedition Cruising
In particular, the luxury cruise and expedition segments are
tremendously strong and likely to experience peak demand in 2024, executives
said.
All signs point to continued strong demand for luxury
cruise travel in 2024. Specific to Scenic and Emerald Cruises, we expect to
surpass our 2023 year, said Ken Muskat, managing director of Scenic Group USA.
We see the booking window extending further out, which
allows more opportunity to find hotel rates and air fares that are more
reasonable as well as the opportunity to take advantage of our air-inclusive
offers. Deals will continue at certain times of the year, as weve seen them
generate big demand during Labor Day, Black Friday/Cyber Monday and going into
the peak booking period of Wave. But with booking demand up, it is recommended
not to wait.
Barbara Muckermann, president of Silversea, the ultra-luxury
line that is part of Royal Caribbean Group, said the line continues to see
high demand and strong pricing for voyages departing next year, with 2024 set
to be an even stronger year for our brand.
With the successful introduction of Silver Nova in 2023 and
Silver Ray scheduled to join the fleet in summer 2024, we are on track to
surpass our record year of 2023, she added.
Shifting Spending Habits
The luxury travel industry continues to register strong
growth C in part due to a marked shift in spending habits from things to
experiences, Muckermann said. At the same time, the growing appeal of luxury
cruise travel is also increasing demand; from a pricing perspective, the value
proposition of luxury cruise travel is becoming more aligned with that of
luxury land-based vacations.
We have seen the price gap between luxury cruise travel and
land-based vacations narrow since the pandemic, and this seems valid for
virtually all players in the cruise industry. As a result, demand for cruises
is increasing, with many new-to-cruise travelers seeing the appeal of our value
offering, and we expect this trend to continue into 2024.
A couple on cruise ship's shore excursion. (photo via LuckyBusiness / iStock / Getty Images Plus)
Cruise Planners CEO Michelle Fee said the resilience
of the cruise industry is truly commendable, with luxury showing
incredible growth.
In the ever-growing landscape of luxury travel,
specifically cruising, our journey from selling primarily contemporary brands
to increased growth in luxury brands has been nothing short of remarkable, Fee
said. The luxury segment is soaring, and we are proudly finishing 2023 over 25
percent ahead of last year.
National Elections
There are a few possible headwinds this year. The
Israel-Gaza strife impacted Middle East itineraries, and presidential election
years sometimes dampen travel demand, especially when the campaign season is
turbulent, as could be the case this year.
Thankfully, we have not seen a rise in cancellations other
than the small number of sailings visiting the Middle East, and most have been
redeployed to other ports already, Fee said.
Our travel advisors have been able to help consumers find
alternative options and have also been able to reduce any concerns, Daly said.
As a result, the Caribbean, Mexico and Alaska continue to be very strong for
North American travelers. The focus is to book as much space for 2024 now.
Monitoring Geopolitical Issues?
We continue to monitor the geopolitical situation in the
Middle East. The nature of our business has enabled us to quickly reroute
affected itineraries as necessitated by the evolving circumstances, Muckermann
said. With just 1.5 percent of all Royal Caribbean Group itineraries scheduled
to call in Israel in 2024, the impact on our operations is limited, and our
teams have already worked diligently to devise appealing itineraries in
alternative regions for the safety and security of our guests and crew.
Woman working on cruise ship. (photo via baona / iStock / Getty Images Plus)
Overall, optimism is high for another
banner year in 2024. As we look ahead to 2024, I am confident that the
luxury cruise segment is poised for another extraordinary year, Fee said. Can
we surpass the heights of 2023? Absolutely. Our strong network of advisors,
coupled with the unwavering spirit of our customers, sets the stage for
unprecedented success.
Rise in Small-Ship Coastal Cruising
Small-ship coastal cruising in the U.S. is showing
exceptional demand.
Small-ship cruising has always offered tremendous value for
exploration. Our pioneering mission to offer that value on modern ships in the
U.S. still holds firm, said Charles B. Robertson, president & CEO of
American Cruise Lines.
In 2024 and the years ahead, I think American Cruise Lines
will continue to expand and break records. In the river and small-ship space,
demand continues to build for sophisticated ships along U.S. waterways, and we
will be building along with it.
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