Page 7 - 2024 CIN Luxury Market Report

Luxury Market

Accelerated Growth

arket capacity, that is, passengers carried, will also shoreside, the luxury cruise lines find themselves offering
Mleap forward, going from an estimated 1.1 million value for money, a gap they hope to close.
guests in 2024 to at least 1.5 million by 2028, compared to The benefits of being able to offer multiple destinations in
around 600,000 in 2019. a single sailing, with guests unpacking once, at a better value
The growth is primarily fueled by Explora Journeys, MSC’s than a resort or land-based vacation, should continue to drive
new luxury brand, and continued newbuildings by Viking. Add growth for years to come.
in a handful of new companies including Ritz-Carlton, Four
Seasons and Orient Express, plus more expansion by other Where it’s Been
players and the emergence of the luxury expedition market, The broader cruise industry has seen explosive growth since
shows and the growth curve is impressive. its modern day launch out of Miami in the mid 1960s. That
was with bigger ships, and the current luxury segment can
Vessel Mix trace its way back to Royal Viking Line in the 1980s followed
Luxury ships are under 1,000 guests and command some by the launches of Sea Goddess, Crystal and Seabourn. To
of the highest ticket rates in the industry, ranging from $500 some extent, it’s been an arms race in new hardware.
and up per day. Over the years, the industry has managed to hurdle over
Vessels tracked for this report range from around 100 guests any challenges, ranging from wars to natural disasters, oil
to the 998-guest range for Viking, and in between there are price fluctuations and economic distress. Through all of this,
ships at all sizes from a range of other operators. the big publicly-traded cruise companies, with the exception
The ships offer longer itineraries to more exotic destina- of the Covid years, were profitable.
tions, often marketing the opportunity to go where the big Helping the business model is the fact the ships are mov-
ships can’t dock, or going to places only realistically accessible able, fixed cost assets. Should there be issues in one region of
by cruise ship, such as Antarctica. A five- to six-star product the world, the cruise lines can quickly move them elsewhere,
offered aboard is at a minimum, almost all inclusive in most or put them where they can generate the highest ticket prices
cases. Meanwhile, when compared to five- and six-star resorts at the lowest operating costs. 

Cruise Industry News: 2024 Luxury Market Report 13