Cruise industry sails on high tide in 2023

Propelled by expedition cruising, luxury travel & AI
2023-06-25
/
/ New Delhi
Redefined luxury, longer cruises
Cruise industry sails on high tide in 2023

The cruise industry is regaining its pace and bouncing back

Pent-up demand caused cruise bookings to bounce back in 2022 and latest data from several reports suggests that it could be a record year in 2023.
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Slowly disengaging from the Covid-19 induced challenges, the cruise industry is regaining its pace and bouncing back. Latest data from several reports, including a recently released survey from Israeli-based web analytics firm SimilarWeb, suggests that the cruise industry looks at a promising season in 2023 and perhaps even a record year.

After a two-year hiatus during the Covid-19 pandemic, pent-up demand caused cruise bookings to bounce back in 2022, a trend that should continue in the near future, according to Cruise analytics company Cruiseline. With a positive outlook and to find out what to expect for the year ahead, India Outbound explores some of the trends predicted to dominate the cruise industry in 2023.

AI tech for seamless travel

touchless boarding process

Touchless boarding process is gaining popularity

According to global travel data provider OAG, ever since the onset of the pandemic, the need for touchless travel has soared now more than ever. Artificial Intelligence (AI) is facilitating contactless technology like digital check-ins and boarding passes that rely on biometric. It says that the touchless boarding process is exemplified by Royal Caribbean and that Carnival Corporation made a comparable approach when it installed infrared cameras to check people before boarding. Wearable gadgets that use RFID technology, such as Princess Cruise’s Ocean Medallions, Royal Caribbean’s Wow Bands, or Viking Cruise’s intelligent TraceSafe devices serve as a room key by allowing passengers to pay for drinks, services, games, and other amenities while also opening doors automatically.

Expedition cruises

Passengers on expedition cruises has more than doubled between 2016 and 2022

Small ship expedition cruising has been one of the fastest growing cruise segments of the industry in recent years and it is well set to be one of the hottest trends of 2023. Voyages are sailing farther now, to uncover the less-trodden paths and remote destinations. With the distinctive and daring approach of expedition cruises, it caters to travellers seeking more of an immersive and nature-focused journey as an increasing number of bucket list destinations get off-the-beaten-path. Many newcomers to expedition cruising have achieved quite some prominence for themselves and contributed to the sector’s increased exposure. As the number of passengers on expedition cruises has more than doubled between 2016 and 2022, an upsurge is visible across all age groups. A 51 pc rise in search volume for expedition cruises to Antarctica in 2022 compared to 2019. Furthermore, 137,000 cruise passengers sailed aboard expedition ships in 2022, over 70 pc greater than it was in 2016, adds CLIA.

Resurgence in passenger numbers 

CLIA 123

GenX and millennials are the most enthusiastic about planning a cruise holiday

Many surveys indicate that mainly due to the pent up demand, intent to cruise is higher than it was in pre-pandemic levels, in keeping with a trend that began in the last quarter of 2020. According to reports by Cruise Lines International Association (CLIA), 85 pc of travellers who have cruised will cruise again, 6 pc higher than pre-pandemic,. The future of cruise is the younger generation, says CLIA, adding that GenX and millennials are the most enthusiastic about planning a cruise holiday. According to the report, 1.7 million cruise vacations were taken by tourists from the UK and Ireland in 2022, approaching demand levels last seen in 2019, among whom the Mediterranean continues to be the top destination. In 2023, the number of cruise passengers sailing on cruises is expected to increase by 106 pc from 2019 levels to 31.5 million. This is aligned with UNWTO prediction of January 2023 that arrivals of foreign visitors would be between 80 pc and 95 pc of 2019 levels in 2023.

Redefined luxury, longer cruises

Redefined luxury, longer cruises

Redefined luxury, longer cruises is the current trend

The luxury cruise segment continues to evolve and redefine opulence to meet the needs and tastes of discerning travellers. A number of trends in luxury cruises can be seen in 2023, with exclusive and intimate encounters scaling the top spot. To enable passengers to visit more ports, upscale cruise companies like Holland America are launching more grand journeys with longer itineraries. Even longer world cruises, often lasting more than 100 days and up to 180 or 274 days, are becoming more popular due to the rise in remote employment, which is also piquing interest. Luxury hotel Ritz-Carlton adds the high-touch sophistication with a personal concierge assigned to each apartment onboard the floating opulence Ritz-Carlton Resort that cruises the Caribbean, the Americas, and the Mediterranean.

Sustainability steers the anchor 

Sustainability is becoming a priority within the cruise industry too

As the cruise industry strives to achieve net-zero carbon sailing by 2050, environmental technologies and practices are becoming more prevalent on cruise ships. With an uptick in the usage of alternative fuels and energy efficiency in the cruise sector in 2023, various sustainability trends can be seen. In order to limit waste production and encourage recycling, cruise lines are putting in place extensive waste management systems. More than several cruise lines are also expanding the use of shore power, also known as cold ironing, to cut emissions when ships are docked in ports. According to the latest reports by CLIA, several cruise lines are now using LNG as a transitional fuel while they explore for more sustainable maritime fuels and propulsion technologies.

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