Australia cruise industry hails strong summer as more young travellers flock to the seas
The high seas have never been more popular with young Australians as cruise lines and tourism operators celebrate a record-breaking summer.
The high seas have never been more popular with young Australians as cruise lines and tourism operators declare this past summer a record-breaking year for an industry that was on its knees only two years ago.
While the sector never doubted Australians would rekindle their love affair with cruising, the recovery has caught many by surprise, with young people driving the revival, as cost-of-living pressures making cruising look like a more affordable holiday option.
The 2023-24 summer season is due to wrapup this month. About 70 cruise ships have operated in local waters in the past six months, an increase from 60 in the season preceding the pandemic.
The three largest operators in the market – Carnival Australia, Royal Caribbean and Norwegian – have all told The Weekend Australian that it is set to be a record-breaking season once the final numbers are tallied in the coming weeks.
Carnival Australia has reported that 715,000 guests have already travelled across all nine of its brands – including P&O Cruises, Carnival, Princess Cruises and Cunard – this summer.
Tourism & Transport Forum chief executive Margy Osmond said the return of the cruise industry had been the best post-pandemic recovery story across the tourism industry.
“Australians have always loved to cruise and we were confident that it would take off when state governments removed their restrictions, but it has just bounced back much stronger than anyone expected,” Ms Osmond said.
“The youth market is driving the demand … anyone who thinks cruising is just for old people is just wrong. Everyone under 35 is cruise-curious these days, and the cruise lines are responding with a number of new ships and a variety of offerings that appease everyone.”
About 35 per cent of Australians aged under 35 were planning a cruise this year, compared to 18 per cent of over 65s. Since 2019, P&O Cruises has seen a 20 per cent increase in the number of 18-35-year-olds cruising on its ships.
Cruise Lines International Association Australasia managing director Joel Katz said Australia was one of the strongest cruising markets globally, with the number of new ships and cruise lines increasing the popularity further.
“The 2023-24 summer has been one of the busiest cruise seasons Australia has ever hosted,” Mr Katz said.
“It was the summer that brought cruising back to its full scale in this region, and in many ways it has been one of our best.”
It is a remarkable turnaround from just over two years ago, when pandemic restrictions that banned cruise ships from Australian waters threatened to sink the industry and businesses that indirectly benefited.
Carnival Australia senior vice-president Peter Little said the pandemic was difficult for the cruise industry, but the subsequent reopening also proved challenging, going from a standing start to high levels of activity.
“It hasn’t been easy, but that episode is behind us and has made us very resilient. But we are just delighted to be back in Australia delivering great holidays,” Mr Little said.
“We managed to get all of our on-board teams back and our shore-side teams back and we’re back to full strength now. But it wasn’t easy, particularly getting people back through the borders.”
The cruise industry is now offering products that keep everyone from young children to grandparents entertained and also various itinerary options including weekend trips, which have resulted in strong uptick in demand
The variety was boosted by the debut of adults-only Virgin Voyages and the child-friendly Disney Cruise Line, while Royal Caribbean launched a partnership with The Wiggles last month.
Norwegian Cruise Line Asia-Pacific vice-president Ben Angell said the expanding range of cruise lines and ships available for travellers offering a wide array of products, facilities and itineraries had helped produce a record year.
“Cruise fever has captured Australia during the local summer season,” Mr Angell said. “From more budget-friendly options that appeal to families, or contemporary ships tailored towards adult cruisers, right through to premium and luxury options, there has never been so much choice for Australians.”
Royal Caribbean AUNZ vice-president Gavin Smith said more variety, such as its Quantum Class ships that carried almost 5000 passengers and featured dodgem cars and a shopping mall, had helped to woo the young crowd, while short trips were popular amid cost-of-living pressures.
“The average age of guests sailing on our Quantum class ships over our summer season dropped by four to five years in the last few years,” Mr Smith said. “Australians are understanding the value of cruises more than ever, especially given the cost-of-living pressures and the ease of cruising, with shorter sailings being the ideal duration for those juggling family and work commitments.”
Cost-of-living pressures following the Reserve Bank’s rapid run of interest rate rises, coupled with inflation that has forced households to cut back on spending, has seen people see a cruise as value for money.
“If you’re looking at the total cost of a trip then a cruise can be a great option for families when you consider the total cost of some land-based holidays,” Mr Little said.
Cruise ships will have spent a total of 1848 port days in Australia by the end of the 2023-24 season, an 18 per cent increase on 2019-20, according to CLIA, delivering an economic boost to many regional communities.
Spending by cruise lines, cruise passengers and crew injected more than $5.63bn directly into the economy in the past financial year, a 22.1 per cent increase from the 2019 fiscal year, according to CLIA.
This year’s record season means this contribution should rise further. There has also been a 9.9 per cent increase to 18,225 full-time equivalent positions as a result of the cruise industry.
Ms Oswald said the growing popularity of cruising was being felt across the industry, lifting demand for hotels, hire cars, Ubers, retailers, eateries and even airlines for one-way cruises.
“The number of port calls that cruise ships are making has surged this summer, so these impacts are not just being felt in the major cities, but also in the likes of Eden, where the local tour operator gets more bookings and the coffee shop sees more demand,” she said.
Carnival Australia now sources more than $300m from Australian and New Zealand suppliers, compared to $70m in 2019.
Hotel commerce platform SiteMinder has observed travellers have tacked on short hotel stays either side of a cruise, with analysis of 12 small to large hotels in the three months to January showing that hotel stays rose from 9340 in the prior year to 13,576.
“That large increase of 45 per cent is directly attributable to the amount of cruise ships in those major ports,” SiteMinder chief growth officer Trent Innes said.
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