Cruise Industry's Continuing Voyage: Navigating Post-Pandemic Waters

The AAA predicts nearly 19 million Americans will cruise this year, a 4.5% increase from 2024's 18.2 million. Despite slowing growth, 2025 will mark three record years. Caribbean cruises remain popular. Royal Caribbean, Carnival, and Norwegian Cruise saw high demand, boosting stocks in 2023.

The cruise industry is expected to continue its post-pandemic recovery, with nearly 19 million Americans anticipated to take cruise vacations this year. According to a forecast by travel group AAA, passenger volume will grow by 4.5% from 2024, when 18.2 million Americans embarked on ocean journeys.

The growth rate has decelerated from last year's 7.7% increase and the remarkable 42% leap witnessed in 2023. Despite this slower growth, 2025 is projected to be the third successive record year for cruise passenger numbers, with the Caribbean remaining the top destination choice for American cruisers.

Major operators like Royal Caribbean, Carnival Corp, and Norwegian Cruise Line Holdings have experienced heightened demand, even amid rising itinerary prices. This surge catapulted their stocks, with Royal Caribbean's shares rising by 78%, Carnival's by 34%, and Norwegian's by 28% last year. AAA's forecast was compiled using economic outlooks and travel trends, in collaboration with Tourism Economics, an Oxford Economics company.

(With inputs from agencies.)