A new calibre of luxury cruise ship is on the rise

For all the tightened purse strings and worries about the world economy, many of us still have ample disposable income. In 2019 some 600,000 passengers boarded luxury cruises, but last year that number soared to more than a million, according to the Cruise Industry News.

Part of the increase can be attributed to revenge spending following the pandemic years. Travellers have also been treating themselves to more upgraded staterooms, longer cruises and additional land extensions before and after sailing than before. Demand for world cruises has surged.

Demand for cruises with all the bells and whistles is surging.

More luxury cruises have been booked, too, and that isn’t only revenge spending, but part of a bigger picture. The luxury trend has been around for a while, and newly emerging Asian cruisers are adding to the numbers, especially as they’re increasingly looking to cruise in remote (and expensive) locations such as the Galapagos and Antarctica.

According to the Cruise Lines International Association, the number of luxury ships has expanded by a third every five years since 2010 and the trend isn’t slowing. By 2030, a projected 1.5 million people will be indulging themselves on luxury ships.

By passenger number, that’s a tiny percentage. But by 2036 the luxury segment is expected to produce more than 50 per cent of all cruise revenue from North American passengers, who make up by far the world’s most significant cruise market.

The luxury market is changing, which is no surprise considering Gen-Z and millennials now constitute half the population. As passengers become younger, demand for adventurous destinations, more active shore excursions and activities, and more sustainability has risen. As a result, expedition cruising, once considered rather rugged, has become as luxurious as ocean cruising.

The cruise move also reflects a wider trend in tourism in which wealthy customers are looking not just for more physical luxuries but ease of travel, security, indulgence, personalised service, cutting-edge technology, chic design and curated experiences.

Luxury cruising is in a good position to meet those demands, and the cruise industry is certainly prepared to welcome increasing numbers of well-heeled guests.

An entirely new luxury cruise company, Explora Journeys, was launched in 2021 by MSC Cruises and it currently has two ships with three more planned. About half the ships launched in 2023 were at the premium and luxury end, and the order books are full up to 2030.

Crystal Cruises has two ships on order and an option for a third, while Regent Seven Seas and Oceania have two each. Windstar’s Star Seeker is due in December 2025 and will focus on Japan and Alaska cruises. A second ship in this new class, Star Explorer, is due in 2026.

Other tourism companies are taking notice. Tour groups andBeyond and Abercrombie & Kent have entered the market, and so have hotel companies such as Ritz-Carlton and Aman. Luxe cruise ships from Four Seasons and Accor are on the horizon as well. Champagne corks will be popping.