Cruise industry recovers to pre-pandemic levels
29-05-24
After an arduous recovery process over the past four years, the cruise industry is finally approaching pre-pandemic levels of activity and profitability. The devastating impact of COVID-19 had led to a steep drop in revenues and passenger numbers, putting them well below 2019 levels. However, all indications are that this year could mark the long-awaited return to normalcy.
According to data from Stocklytics.com, this year the cruise industry is projected to reach revenues in excess of $30 billion and carry some 29 million passengers. This achievement represents significant progress since the collapse of the industry, which during the pandemic saw its revenues and customers reduced by almost 90%.
In 2023, the global cruise industry generated $25.1 billion in revenue, according to Statista Market Insights, which still represented a $2 billion gap from 2019 revenue. In addition, passenger numbers reached 24 million, five million fewer than before the pandemic.
However, Statista forecasts a positive turnaround this year, anticipating that cruise lines will generate $30.1 billion in revenue, representing a 20% increase over last year. This growth places the cruise market as the fastest expanding segment within the travel industry, outpacing other sectors such as hotels, which will experience 8.6% year-on-year growth, and package holidays and vacation rentals, with increases of 7.3% and 6.1% respectively.
The United States continues to be the largest market for the cruise industry, with projected revenues of $15.1 billion in 2024, representing half of the total global market. Other major markets include Germany, China and the United Kingdom, each generating approximately $2.5 billion in revenue.
In terms of market share, Royal Caribbean Group stands out as the largest player, controlling 20% of the market. Its share price has increased 87% in the last year, adding more than $18 billion to its shareholder value. Carnival Corporation, the second largest player in the market, has also seen significant growth, with a 34% increase in the value of its shares, adding more than $5 billion to its market value.
The road to recovery has been challenging for the cruise industry, but current projections are optimistic. With robust growth in revenue and passenger numbers, and leadership from major markets and companies, the cruise sector appears to be not only recovering, but also positioning itself for a promising future within the global travel industry.
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