Cruise Market Size, Share & Trends Analysis Report By Type (Ocean Cruises, River Cruises), By Region, And Segment Forecasts, 2022 - 2028

Report Overview

The global cruise market size was valued at USD 7.25 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 11.0% from 2022 to 2028. This can be attributed to the rising popularity of the vacation on a cruise due to the cost difference and the amenities provided by the alternative vacations. Cruise vacations are more affordable as compared to alternative land-based vacations, which include transport, meals, accommodation, and entertainment. According to the Cruise Lines International Association, 58.0% of the international vacationers are first-time cruisers, who are likely to cruise in the next few years.

As a result of the COVID-19 pandemic, the market experienced a decline in passenger numbers. As per the Cruise Lines International Association, in 2020, worldwide passenger volume decreased by 80.0%. Due to the eruption of the COVID-19 pandemic, the majority of the cruises were stranded at various locations and other cruises were canceled. However, the industry is anticipated to witness a slow and healthy growth rate owing to the resumed activities and relaxed restrictions. In the wake of the pandemic, many holidaymakers are looking for small vacations as a getaway.

A vacation trip for multiple days, arranged on the cruise ship in the large inland waters or sea while visiting various destinations for tourism, following a particular route is known as a cruise. The focus in this sort of voyage is basically on staying aboard the ship along with eye-catching destinations for the tourists. The growing industry of hospitality & tourism is contributing to the market growth, thus driving the global cruises market.

Increasing leisure trips and voyages taken by generation Z along with the growing preference of a high population to live a luxury life is contributing to the market growth during the forecast period. The rising popularity of the river cruises is likely to drive the global cruises market. River cruises offer attractive packages that travel inside the countries and not just the coastal areas. These types of river cruises are becoming increasingly popular in European countries.

The growth of the cruises market is restrained by the increasing concerns regarding the environmental pollution, caused by ocean cruising. Cruise passengers and crews generate a significant amount of waste and pollutants. Ocean cruise ships are responsible for approximately 77.0% of the marine pollution, globally. The awareness activities by the environmental organizations and civilian groups are likely to impact the cruises market growth. This has resulted in the developments and research in sustainable and cleaner disposal of the waste generated.

Nowadays, ships are coming with innovations and numerous exciting in addition to fun activities and theme cruises for the travelers such as yoga themes, kid themes, mystery themes, and others. Such innovations are gaining massive popularity among the targeted population and attracting different demography hence driving the cruises market. However, the presence of a limited number of companies intended for the manufacturing of such cruises along with high-cost association for their manufacturing is expected to restrain the market growth during the forecast period.

Type Insights

The market is dominated by the oceans cruises segment by revenue share. In 2021, the ocean cruise segment accounted for above 80.0% of its revenue share. Strong players offering services in the ocean cruises segment for the intercontinental trips at a large number is attributed to the higher market revenue share. Additionally, due to the exciting packages, amenities, and entertainment activities, a large customer base prefers ocean cruises over other cruises. These activities are doable on the big ocean cruise ships that provide spacious areas as compared to the others.

In the global market, the river cruise segment is expected to witness the fastest growth rate, registering a CAGR of 13.3% from 2022 to 2028. The rising popularity of the river cruises among the vacationers is attributed to the highest CAGR. Unlike, ocean cruises which are docked in the coastal region on the account of their huge size, river cruises travel across the rivers offering more internal destinations and sightseeing. River cruising is becoming popular in European countries navigating across different countries. For instance, the Danube River offers cruises that can travel through 10 countries in Europe.

Regional Insights

North America accounted for around 50.0% of revenue share and dominated the market in 2021. The region’s dominance in the global market is mainly credited to the strong presence of the international key players and the most developed industry. Higher disposable income, consumer spending, and the developed tourism industry are the factors, attributing to the higher market revenue share.

The Asia Pacific is expected to witness the highest growth rate during the forecast period. The region is likely to register a CAGR of 12.1% from 2022 to 2028. During the past few years, the cruise industry is shifting from North America and Europe to the Asia Pacific. Due to the government initiatives to develop the tourism industry to increase the economic output, the cruise industry in the Asia Pacific is flourishing. For instance, on August 19^th, 2020, the Indian government announced to reduce 70.0% of the berth charges to boost cruise tourism.

Europe was the second-largest in terms of revenue share and accounted for over 25.0% of the share in 2021. It is expected to achieve a significant CAGR during the forecast period. The growth of the market is attributed to an increase in demand for sustainable tourism. Due to this increasing demand, local communities are becoming more appealing to the tour operators that are small medium-sized and thus contributing to the market growth

Key Companies & Market Share Insights

The global market is characterized by the presence of large, prominent key players and small local players. The majority of the market share is occupied by the two companies, Carnival Corporation & Plc. and Royal Caribbean Group.

Key companies are focused on new initiatives to increase their clientele. Such as multigenerational packages targeting family travel, kids theme cruise vacations for children, mystery theme cruise vacations, etc. These key players operating in the global cruises market are focusing particularly on expanding their business to the untapped region or countries.

For instance, In June 2018, Carnival Corporation & Plc announced the sale and purchase agreement for the acquisition of TWC Enterprises Limited's White Pass & Yukon Route (WP&YR) division by its subsidiary Holland America Princess Alaska Tours. This strategy is adopted to expand the docking facilities in order to accommodate cruise ships that are of the newest generations. Some prominent players in the global cruise market include:

• Carnival Corporation & Plc

• Royal Caribbean Group

• MSC Cruises S.A.

• Norwegian Cruise Line Holdings Ltd.

• Disney Cruise Line

• Genting Hong Kong Limited

• Fred. Olsen Cruise Lines

Cruise Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global cruise market report based on the type and region:

• Type Outlook (Revenue, USD Million, 2017 - 2028)

  • Ocean Cruises

  • River Cruises

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa