Qantas finds rich new source of cash in ocean and river cruising

Qantas has found a way to make money out of the booming cruise industry as frequent flyers splash out on ocean voyages.

Having almost perfected the art of making money from flying, Qantas has set its sights on the boom in cruising to further boost its bottom line.

That’s not to suggest travellers will be boarding Qantas cruise ships anytime soon. Rather, the airline’s travel company TripADeal is expanding heavily into the cruise space in response to growing demand.

It comes six months after Qantas bought out the remaining stake in the Byron Bay business for $211m, after acquiring a 51 per cent share in 2022.

Since then total TripADeal bookings have increased 70 per cent, aided by the close association with Qantas’s juggernaut frequent flyer program, now boasting more than 16 million members.

TripADeal chief executive Matt Wolfenden said four of five of their customers were also Qantas frequent flyers, looking to use their points for new travel experiences.

In response, TripADeal had increased its range of cruise itineraries from 500 to over 30,000 individual sailings, including to new destinations such as the Galapagos Islands, Greenland, the Amazon River, Seychelles and the Kimberleys.

The Galapagos Islands in the Pacific Ocean are a popular destination for cruisers. Picture: iStock

“We’re seeing a real surge in cruise bookings, particularly among younger Australians, so this expansion is about offering greater choice and tapping into that growing demand,” said Mr Wolfenden.

“Cruise operators are also enhancing the on-board experience, swapping out bingo and all-you-can-eat buffets for features that appeal to multi-generational travellers.”

These included go-kart tracks, water parks, roller coasters, surf simulators and escape rooms.

Booking data showed a third of TripADeal’s cruise customers were aged under 35, bringing down the average age of a cruise passenger by 10 years since the pandemic.

The younger demographic was also evident in Cruise Lines International Association (CLIA) data, which revealed the average cruiser was now aged 48.4, down from 50.4 in 2019.

One thing which had not changed was the popularity of cruising Alaska, Antarctica, Japan and Hawaii, with seven-day itineraries considered the sweet spot.

Cruising Greenland is fast becoming as popular as Alaska and Antarctica. Picture: Ilulissat/Seabourn Zodiac

TripADeal was also seeing more demand for adventure and experience-based cruises, such as ocean polar plunges in Antarctica, dolphin encounters in the Cayman Islands and windsurfing in the Bahamas.

“On-trend destinations like Antarctica, Alaska and the Kimberleys are more accessible by cruise and at a really sharp price point,” Mr Wolfenden said.

“The all-inclusive nature of cruises appeals to holiday-makers looking for value, who can calculate what everything will cost them ahead of their trip.”

Cruises could also be paid for with points, starting at 359,000 for a 14-day all-inclusive Japan cruise and flights which would normally cost $3599 per person.

Frequent flyers thinking of a Hawaiian cruise will need 479,000 points for a 12-day cruise plus flights, or 1,299,900 for a 15-day Antarctic cruise and flights.

CLIA pointed out cruising had recovered more quickly than flying in the wake of the Covid pandemic, with global passenger numbers exceeding 2019 levels in 2023.

In 2024, just under 35 million people took a cruise, up from 31.7 million in 2023 and 29.7 million in 2019, with the figure tipped to exceed 37 million in 2025.

Originally published as Qantas finds rich new source of cash in ocean and river cruising