Cruise companies come calling for Indian clients

2025-02-07
/
/ New Delhi
Cruise companies come calling for Indian clients

A number of reports suggest that the global cruise industry set a new record in total revenues in 2024

Boosted by a surprisingly strong rebound from the Covid-19 pandemic, the global cruise market has seen another significant transformation as cruise companies aim to broaden their market and are looking extensively at Asian, or more precisely, the Indian market which finally seems to be developing a taste for cruise.
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Almost exactly five years ago, right in the initial stages of the outbreak of Covid-19 pandemic, a series of alarming reports and images emerged from different parts of the world showing tens of thousands of persons trapped aboard several ships stranded at sea as port after port refused them entry due to suspected Covid-19 cases onboard the ships.

According to reports, almost a dozen ships were stranded simultaneously, in regions as far away as South America and South East Asia, leaving the passengers and crew onboard the ships, and their families, hundreds of km away at home, wondering about their fate.

By the end of the year, it had seemed that cruise tourism had sunk and it would be a very long and very slow journey to recovery, which was seen as being in some very distant future.

However, barely four years later, cruise tourism has not only rebounded sharply but with an immensely strong wind in its sails, it is breaking one record after another as millions of tourists have taken to cruising like never before and making the pandemic appear like a bad nightmare which never really happened.

A number of reports suggest that the global cruise industry set a new record in total revenues in 2024.

“During the calendar year 2024, leisure cruise travel globally is set to reach around USD 75 billion with markets like United States, Germany, China, and the United Kingdom dominating the segment,’’ Abhay Prakash Singh, Research Analyst, Euromonitor, a market research firm, tells India Outbound.

Abhay Prakash Singh

Abhay Prakash Singh

According to Cruise Line International Association (CLIA), the industry association, from a high of 29.7 million ocean-going cruise passengers in 2019, the industry collapsed to 5.8 million in 2020 and in 2021, declined further to 4.8 million, the lowest in several decades.

The recovery began in 2022, when the numbers staged a four-fold growth to 20.4 million and then in 2023, they shot up by another 50 pc to reach an all-time high of 31.7 million cruise passengers. In 2024, the market is expected to have nearly breached the 35 million mark and in 2025, CLIA says it expects over 37.1 million passengers to embark upon an ocean-going cruise.

The rosy situation in which the cruise industry finds itself now, relatively soon after the end of Covid-19 pandemic, could almost be too good to be true or a bubble created by revenge travel, had the changes in the market not been so deep and wide as the market has not just grown in numbers, but even its character has evolved with new profiles of customers and new geographies opening up.

Though the rebound has been in many parts of the world and the traditional source markets of Western Europe and North America are still the dominant players, one major change in the post-pandemic era of cruise tourism is the shift in focus of the global cruise companies towards Asia. In 2024, the defining trend of the global cruise industry has been the pivot of practically every cruise operator towards the Asian markets. Asia, or more specifically India, is the new battleground for cruise companies and a bit natural, too. After all, it is home to over 35 pc of global population and counts some of the biggest and even most lucrative travel and cruise markets in the world. Over the next few years, the global cruise axis will shift from Mediterranean and Caribbean to Indian Ocean extending from Arabian Sea and Persian Gulf to Bay of Bengal and South China Sea.

Singh of Euromonitor confirms the emergence of India as a key potential source market and projects a 16 pc CAGR growth over the 2024-2029 period in India.

“In 2024, cruise tourism in India experienced a robust double-digit growth driven by increasing experiential travel demand, supportive government policies, and better affordability,” he says.

All eyes on India

So far, the best performing source markets for cruise passengers have continued to be the traditional ones in North America, Western Europe, with the exception of China, which was the last major market to reopen in the post-pandemic era. Thus, in 2023, while the United States was 19 pc larger than 2019 and the United Kingdom 15 pc higher, the Chinese market was 92 pc below the pre pandemic high.

But while China was a major disappointment for the cruise operators, they found hope in other markets in Asia, notably India, which has rebounded in a manner that has caught by surprise even the most fervent believers in Indian outbound travel industry.

In 2023, the outbound travel from India grew at a racy 30 pc over 2022, leading to over 28.2 million outbound trips in the year, well over the 26.9 million outbound trips made by Indians in 2019. The pace continued in 2024 as well when over 30 million trips are believed to have been made and most analyses project that the outbound travel from India would exceed 50 million trips a year far before the earlier projections.

Cruise tourism has not only rebounded sharply but with an immensely strong wind in its sails

Cruise tourism has not only rebounded sharply but with an immensely strong wind in its sails

Deepak Sharma is Sales Head, Cruises-India at TBO, a leading B2B travel platform and an old hand at cruise tourism. Sharma confirms the trends outlined by Singh of Euromonitor.

Deepak Sharma

Deepak Sharma

“Yes the demand for cruise tourism has seen significant growth in India especially post pandemic. It has been driven by our young population, increased awareness, higher disposable income and growing interest in experiential travel. Also the diverse offering of cruises in different continents with option of covering multiple destination in one vacation. Lastly with the advent of domestic cruising option the potential has multifolded,’’ Sharma tells India Outbound.

Chirag Agrawal, Co-Founder, TravClan, another B2B travel platform, backs up Sharma’s sentiments enthusiastically.

Chirag Agrawal

Chirag Agrawal

“Absolutely! In the past couple of years, we have witnessed a surprising surge in demand for cruises, along with a significant increase in awareness and enthusiasm for this segment. This growing appetite for cruises can be attributed to the success of domestic cruise lines like Cordelia, which have made cruises more accessible and fostered a new-found love for the product within the Indian travel market. As people become familiar with cruises at a lower price point, they are more willing to explore luxurious international sailings without much skepticism,’’ Agrawal tells India Outbound.

It is this fast-paced growth and one with seemingly limitless potential that has drawn practically every major cruise operator from across the world to tap the Indian market.

As a result, 2024 has seen the cruise operators make a beeline to India, seeking to lure the Indian travellers as well as the travel trade. And in order to attract the customers, the cruise operators are not only keen to get Indians to travel to the Caribbean or the Mediterranean for their traditional cruises, but are bringing the cruises closer home in order to make it even more attractive and relatively easier, faster and cheaper for the Indian travellers to go on a cruise.

First off the block in this game is Resorts World Cruises, a cruise operator based in Singapore, which in November 2024, launched its first cruise in the Gulf Cooperation Council region, with Resorts World One. With both Singapore and Dubai being amongst the top destinations for Indian travellers, RWC hopes to expand its market in India.

Naresh Rawal

Naresh Rawal

“For Resorts World Cruises, we currently have two ships with the Genting Dream in Singapore and the Resorts World One in Dubai. Both Singapore and Dubai are already popular destinations for many tourists from India. As such, there is a growing percentage of travellers that are keen to extend their vacation with a Fly-Cruise pre or post cruise at the respective destinations. For Singapore, our 3-Night Phuket Cruise, 3-Night Penang–Kuala Lumpur Cruise and 2-Night Melaka Cruises are popular among travellers from India. For our Dubai deployment, our 2-Night Cruises be it to Sir Bani Yas or Doha, as well as our 3-Night Oman (Khasab-Muscat) Cruise are also gaining positive traction,’’ Naresh Rawal, Senior Vice President – Sales & Marketing, RWC, tells India Outbound.

Rawal says that the response to the new cruise has been very positive, even within the first few weeks. “The response has been very positive and is gaining momentum and traction among the international Fly-Cruise market, especially from India as Dubai is already a popular destination for many Indians. We have also had large and successful MICE events on the ship from India, including weddings and corporate group functions catering to 100 – 800 guests per sailing with more charters in the pipeline,” adds Rawal.

Entering the Dubai market has put RWC head to head, in some ways, with Costa Cruises, a subsidiary of Carnival Corporation, which has been operating a cruise in Dubai for the past 19 years. Though earlier the cruise was primarily oriented towards European and American clientele, it is clear that Costa is now looking to tap the Indian market proactively.

Mirco Vassallo

Mirco Vassallo

And hence, recently, Costa Cruises organised its first-ever media meeting in India where Mirco Vassallo, International Sales Director, outlined his plans for developing the Indian market. “I think that we have received great appreciation from the Indian market. I think that our product is very appreciated by the Indian guests and for us India represents one of the most important markets for our future growth because we think that we have interesting segment for not only the Indian corporates but also travellers that want to come to Europe or to Emirates, visiting more than one country in only seven days and doing it through the journey of our Sealand experience and our cruises. So that is what we want to propose in the Indian market,’’ Vassallo tells India Outbound.

Vassallo adds he is very optimistic about the growth in India and with the right kind of customers. “I think that we have a huge potential. Of course we want to play our game. We want to deliver our product exactly to young people, families and corporates who want to organise their holiday with us. But we are not here to sell the cruises to everybody. We are looking to get passengers that are interested in our international and contemporary offer, our Italian touch, our attention for goodinternational food. And our attention for such huge wide entertainment that we manage on board,’’ Vassallo explains.

 Disney Cruise Line

India’s emerging outbound travel market and growing interest in cruises provide Disney Cruise Line with a significant opportunity to introduce its offerings to a wider audience

Adding to the heat of competition in Asia-Pacific region is Disney Cruise Line which has scheduled its first Asian cruise with a brand-new ship Disney Adventure that will begin its maiden voyage on December 15 from its homeport at Singapore.

Sarah Fox

Sarah Fox

“The Indian market is incredibly important to Disney Cruise Line. The Disney Adventure is poised to be a game-changer with exciting and nuanced experiences. Designed specifically for the region, this new ship offers a magical escape for Indian families into the dreamy and magical Singapore’s strategic location, combined with its world-class air connectivity and port infrastructure, makes it a thriving cruise hub in Asia,’’ Sarah Fox, Vice President and Regional General Manager, Southeast Asia, Disney Cruise Line, tells India Outbound.

“Homeporting in Singapore allows us to focus on source markets that are already key contributors to Singapore’s tourism sector. These regions are natural priority areas for us due to their strong travel demand. Additionally, these markets benefit from well established flight connections to Singapore, ensuring easy access for travellers. By looking at Singapore’s tourism arrivals and dominant market sources, we can predict that India, China, and Indonesia will be some of our key markets,’’ Fox adds.

“India’s emerging outbound travel market and growing interest in cruises provide Disney Cruise Line with a significant opportunity to introduce its offerings to a wider audience. India’s travel landscape has evolved significantly, with a growing demand for premium, family-friendly experiences, particularly in Tier 1 cities like Mumbai, Delhi, Bengaluru, and Chennai. These urban hubs are home to a thriving audience that values unique and immersive vacations. DCL has been working very closely with a range of regional and local travel operators, including online travel agents and traditional travel agents across Asia, to meet guests’ booking preferences. We also have dedicated teams in India and Indonesia, ensuring trade promotions are strong and effective,’’ says Fox.

As the world’s largest cruise operator, Carnival Corporation, too has been receiving Indian clientele for a long while, mainly on its cruises in the Caribbean and the United States.

Carnival Corporation too has been receiving Indian clientele for a long while

Another large player which has long been present in the Indian market is Royal Caribbean International

Dipti Adhia is Director of Discover the World – India, which represents Carnival Cruise Line, one of the primary subsidiaries of Carnival Corporation, in India.

Dipti Adhia

Dipti Adhia

“The Indian market is a burgeoning market with immense potential for us. The rising middle-class affluence, increasing appetite for experiential travel and growing awareness of cruising as a vacation option or part of their vacation have been key contributors to this trend. Indian travellers, with their penchant for family vacations, celebrations and leisure, religious and MICE groups are embracing cruising like never before,’’ Adhia tells India Outbound.

“Among our extensive range of itineraries, the short Bahamas and Caribbean cruises have been historically most popular choices for Indian guests, but we have also seen increased demand in our Alaska sailings, Mexico, Caribbean, Bermuda and our cruises from Australia as well. The allure of pristine beaches, offering breathtaking landscapes, unique wildlife encounters, vibrant culture and the convenience of all-inclusive vacations attract families and groups,” she adds.

Varun Chadha

Varun Chadha

Another large player which has long been present in the Indian market is Royal Caribbean International, represented by Tirun Travel Marketing. Varun Chadha, CEO, Tirun Travel says that there is demand in India for a variety of cruises operated by Royal Caribbean International and its subsidiary cruise firms.

“India plays a strategic role in driving both volume and value across brands and destinations. This is a unique feature when you look at sourcing from the APAC region. We have cultivated the market on both ends, supporting our brands with volume closer to home, for example Singapore and Hong Kong and products such as tour operator driven business to the Bahamas, and adding high value further away, to destinations such as Alaska, Europe, Caribbean and Antarctica,’’ Chadha tells India Outbound.

“Cruises closer to home, like those in Singapore, continue to generate significant volume, but there is a growing demand for expedition cruises to unique destinations such as Antarctica, the Arctic and the Galapagos. Cruises for Meetings, Incentives, Conferences, and Exhibitions (MICE) have also performed exceptionally well, particularly on newer ships in popular regions like the Caribbean, Alaska, and Europe,’’ he adds.

Changing customer profile

According to CLIA, there has been a dramatic shift in the profile of an average cruise passenger globally as more and more younger people are turning towards cruise vacations. It notes that the future of cruise is the younger generation as millennials are the most enthusiastic about planning a cruise holiday. It says that the average age of a cruise traveller is 46 years and that 36 pc are under the age of 40. It adds that an increasing number of new to-cruise travellers are choosing a holiday at sea and that 27 pc of cruise travellers in the last two years were new to cruise.

CLIA adds that Millennials and Gen Z are more likely to travel solo than other generations. According to CLIA, 8-13 pc of cruise travellers are travelling solo. The shift in consumer profile has also been witnessed in India and most cruise industry stakeholders say they want to tap the market as broadly as possible.

“The profile of Indian travellers has evolved significantly in recent years, reflecting shifts in both demographics and travel preferences. Traditionally cruise travel was considered to be a option only for affluent families, older adults and retirees seeking leisure vacations, however now there is a noticeable increase in younger travellers, including millennials, honeymooners, couples and group of friends and families with multiple generation who consider cruise as a vacation. Also travellers from Tier II and Tier III cities are joining the market, expanding it beyond metro cities,’’ says Sharma of TBO.

Agrawal of TravClan says that today’s travellers from India are looking at functional aspects of cruises as well, going beyond the traditional perceptions.

“Cruises are traditionally perceived as a luxurious option for those seeking premium experiences. However, we have recently observed a more functional aspect of cruises being recognised by travellers. Cruises are all-inclusive, offering transportation, accommodation, experiences, and amenities in one package. Consequently, people who wish to visit multiple countries in a single trip are increasingly opting for cruises for their sheer convenience. While families with children and elderly couples remain a significant segment, the traveller profile is diversifying as more people show interest in cruise travel,’’ he says.

The cruise industry in Asia and the GCC region is experiencing significant growth

Almost all the cruise operators say they are looking at a diverse mix of customer profiles and not focussed on any one segment. “Our customer base spans all market segments. We have a mix of affinity travel, such as celebratory groups for pre-weddings, milestone anniversaries, reunions, or like-minded interest-led travel like wellness, bridge clubs, and associations, that continues to thrive. MICE remains a key driver, alongside FIT bookings, where we see a rising preference for higher-category staterooms and suites. Families, multi-generational groups, and working professionals with kids are increasingly opting for cruises, making this segment a robust contributor to our growth,” says Chadha of Tirun Travel Marketing.

“The acceptance towards cruising has evolved and we are seeing a greater interest among a much wider demographic in India, which enables us to grow the cruise industry further. We are seeing strong interest among new travellers and younger travellers that are looking for unique experiences. The MICE segment is also growing rapidly as more planners discover the convenience and attractiveness of a MICE event at sea,” says Rawal of RWC.

Photos: Lotus Destinations

The Sana Khan and Adel Sajan wedding onboard Costa Fascinosa was the first-ever Indian charter wedding to take place in the Mediterranean Sea in April 2017 (Photos: Lotus Destinations)

“Our onboard staff is trained to understand the nuances of Indian hospitality, ensuring a warm and welcoming environment throughout the cruise. Whether it is multi-generational families, honeymooners, religious groups, association groups or corporate groups, we work closely with our travel partners, cruise specialists and MICE partners, to tailor itineraries and packages that meet the unique needs of our Indian clientele. At Carnival, our goal is to make every guest’s cruise experience extraordinary by blending global destinations with personalised touches that celebrate their culture and preferences,’’ says Adhia of Discover the World – India.

Another developing aspect of cruise tourism market in India is the potential for privatising cruise ships for organising private celebrations as cruise ships make for ideal locations to organise not only leisure trips, corporate groups or MICE tours, but they can also be a unique location to host a high-profile destination wedding. Way back in 2017, Costa Cruises became one of the first cruise operators in the world to host a destination Indian wedding.

Vasundhara Gupta

Vasundhara Gupta, Head of Sales and Marketing, Lotus Aero Enterprises, which represents Costa Cruises in India as its GSA, tells India Outbound about how the wedding came to be held on board the ship.

“The Sana Khan and Adel Sajan wedding onboard Costa Fascinosa was the first-ever Indian charter wedding to take place in the Mediterranean Sea in April 2017. It was a four-day European sailing covering Marseilles, Cannes, and Savona. The couple had initially considered lavish land destinations, but we at Lotus Destinations, as GSA of Costa Cruises in India, encouraged them to think differently and choose a cruise wedding. Costa Cruises worked closely with Lotus to understand the expectations and requirements of an Indian wedding, as it was the first wedding group for them. In the end, it turned out to be a magical experience, blending luxury, adventure, and unforgettable memories,” says Gupta.

According to Gupta, around 1,500 guests joined the celebration, including Bollywood stars like Malaika Arora, Shilpa Shetty and Badshah. However, the entire ship, Costa Fascinosa, with a capacity of 3,800 passengers was chartered to cater for extra rooms for the guests’ wardrobes and their entourages. The guests came from all over the globe including India, the Middle East and other parts of the world.

She adds that there was a lot of customisation in the food, particularly with the serving of Indian dishes. The Indian chefs onboard Costa Cruises collaborated with an external company which was chosen by the client, to cater to the elite taste preferences of the guests.

For entertainment of the wedding party, an international crew worked with Indian celebrities to customise the experience, featuring a mix of Western music and Bollywood styles. Also, celebrity artists like Badshah, Meet Bros and Vishal Shekhar, brought in by the family, performed onboard.

“Indian weddings are naturally grand and full of life. What could be more magical than celebrating in the middle of the ocean while visiting beautiful destinations? With more and more couples looking for unique wedding experiences, our goal is to educate the Indian market about cruise weddings, clear up any misconceptions, and showcase the endless possibilities they offer. Partnering with wedding planners and influencers will help spread the word and make cruise weddings the next big trend in India,” says Gupta.

Dominant role of tour operators

Even though the customer profiles for cruise passengers are evolving and quite dramatically, the travel trade will continue to play a key role in the cruise industry, especially with a growing demand for cruise for various new segments where it is much more than simply booking a package for a couple or an individual taking a cruise. And cruise operators know the key role of the travel trade in their businesses in India.

“Our strategy for the Indian market is multifaceted, aimed at enhancing awareness, accessibility and affinity for cruising among Indian travellers. We continue to focus on maintaining as well as building new stronger partnerships with travel trade stakeholders, including tour operators, travel agents, cruise specialists, associations, corporate, MICE, Event Planners and OTAs to amplify our reach. Training programmes and educational initiatives are being rolled out to empower partners with the knowledge and tools needed to introduce Carnival’s unique offerings to Indian customers effectively,’’ says Adhia of Carnival.

“We are excited that the Disney Adventure will offer greater flexibility to bring the magic of Disney cruise vacations to new global destinations. This includes opportunities for MICErelated group bookings, and we welcome inquiries for corporate charters and events. We plan to offer customised onboard packages tailored to business and corporate groups,’’ says Fox of Disney Cruise Line.

Chadha of Tirun says that his company relies on the travel trade, aided by digital media communication. “While our distribution partners continue to drive sales, digital mediums are playing a big role in converting interest to bookings!,’’ he says.

“We see a healthy and balance mix between the leisure and MICE or Corporate groups. Both are showing strong signs of upward trajectory,’’ says Rawal of RWC.

Popular cruise choices

In terms of popularity of cruises, though the traditional favourites have been the cruises in the Caribbean, Mediterranean and South East Asia, the GCC region with Dubai as a hub is likely to emerge as a strong destination as well due to ease of access and proximity.

Senthil Velan

Senthil Velan

“Indian travellers often prefer cruises that bundle accommodations, meals, entertainment, and basic amenities at a reasonable price. Many Indian travellers prefer cruises lasting 2–5 days, ideal for first-timers or those combining a cruise with a longer vacation. Cruises departing from easily accessible international hubs like Singapore and Dubai are preferred. Locations requiring minimal visa hassle are attractive,’’ says Senthil Velan, Group CEO, Rayna Tours, a Dubai-based travel agency that specialises in cruises.

“The cruise industry in Asia and the GCC region is experiencing significant growth, marked by the introduction of new cruise lines and expanded itineraries. This is in line with the increase in demand for the product and augurs well for the overall cruise tourism,” Velan adds.

Sharma of TBO believes that broadening the offer of cruises in the proximity will propel market growth further. “The launch of new cruises in Asia and the GCC region is a positive development for the Indian market. It offers greater convenience with closer to home cruising option. Also these launches cater well to short haul yet exotic experiences positioning these regions as prime cruise markets. The most popular cruise destinations for Indian travellers include South East Asia, with Singapore, Malaysia and Thailand, the Mediterranean, the Caribbean and Alaska,” he says.

“The emerging destinations will include Middle East. The growth in demand for closer destination within Asia and Gulf is expected to continue offering more accessible and shorter cruise options,” he adds.

Cruises in India

Cruises in India is being driven by launch of new cruises in the vicinity of the country

Chadha of Tirun believes that the market’s potential is immense as India has just begun cruising. “We have about 1 pc of the Indian outbound market that is cruising, so the potential is huge. We need more, closer to home deployment and also more cruise lines to begin cruise from India, to further tap into this potential. The good news is, destinations close to home are becoming more cruise friendly such as Dubai, Malaysia, add to Singapore, Saudi Arabia, and our home grown ports are showing great interest too, in tapping into our potential!” he says.

TravClan’s Agrawal says that the demand for cruises in India is being driven by launch of new cruises in the vicinity of the country as well as some clever pre-launch marketing acitivities.

“After domestic sailings, Singapore-Malaysia is a favourite among Indian travellers. Recent launches in the Gulf region have also been very well received and are likely to gain momentum quickly, thanks to the high footfall of Indian tourists in Dubai. In fact, Disney Cruises’ pre-launch marketing campaign serves as a classic case study of cruise popularity. Their campaign has already secured a significant number of pre-bookings, even six months before the first sailing,’’ he says.

The growing demand for cruise tourism in India and the increasing focus of cruise operators on this market and their readiness to customise their cruises to suit the Indian preferences will not only erase any memories of the horrors of the pandemic, but also presage the beginning of a long-lasting fairytale love affair.

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