With a war going on, fuel prices spiking and even some ships stuck in port, it’s a challenging moment, but cruise leaders remain optimistic about long-term growth.
At the annual State of the Industry session at Seatrade Cruise Global meeting in Miami, the CEOs of the major cruise companies admitted the immediate forecasts are cloudy, but they expect a record cruise year.
All the lines are struggling with the price of oil, which has gone up nearly 50 per cent since the start of the Iran war in late February. Higher fuel costs will impact Carnival Corp. the most, CEO Josh Weinstein acknowledged, because unlike competitors Carnival does not hedge against potential spikes using the financial markets.
Weinstein said no one asks about hedges when times are normal and Carnival saves money by not using them. “There’s always going to be volatility in the world,” he said. “We adapt and we persevere and I don’t think this time is going to be any different.”
And Pierfrancesco Vago, executive chairman of MSC Cruises, said the stranding of its MSC Euribia in the Gulf — its passengers and most crew evacuated — has upended the company’s summer season. “Obviously this will delay some itineraries in Europe,” Vago said. “We need to be ready to get out as soon as the opportunity comes up.”
The discussion turned to the growing crowds at travel destinations as ships get larger. Jason Liberty, president and CEO of Royal Caribbean Group, said the growing number of industry-developed private destinations, such as Perfect Day at CocoCay, are helping to distribute ever greater numbers of guests, alleviating bottlenecked ports.
“We are unlikely to be the real cause of the crowding, but when we come in, you can visibly see it,” Liberty said. “There’s a lot of investment going on in order to (better) distribute the customers.”
MSC Group also announced plans to expand its private island array in the Bahamas with Sandy Cay, to join its expanding Ocean Cay
Will all the political and economic uncertainty affect decisions to book cruises? So far, the impact hasn’t been felt, the panelists said.
The cruise industry continued to prove its strength in 2025, with a record-setting 37.2 million ocean-going cruise passengers sailing globally, a report by the Cruise Line International Association released at Seatrade shows. This represents an increase of 7.5% from 2024, adding about 2.6 million cruise guests.
The report also points to the continued strength and resilience of the industry, with nearly 90 per cent of cruisers indicating they intend to sail again.
With a dozen new ships entering service this year, the numbers look even better in 2026.
The investments in new ships have never been higher. Multiple ship orders by the major lines has 77 new ships on order for delivery over the next 10 years and many of them are for mega-ships that carry morer than 5,000 guests. The newcomers will add a total of 205,800 lowers berths for the ships that include 14 different brands. There are $82-billlion in new orders and at more than 20, valued at around $14-billion as options or letters of intent which, if firmed, would push the orderbook’s total value to the stratospheric $100-billion.
Cruising continues to attract a younger and varied audience, according to the report. About one third are under age 40, and approximately one-third of cruise trips are multigenerational, underscoring the appeal of cruise vacations for families and groups.
“Cruising is sailing toward the future with exceptional momentum and strength,” said Bud Darr, president and CEO of CLIA. “Record demand, growing interest from new cruisers and sustained confidence in the cruise experience are being matched by innovation, technological advancements, and destination partnerships. At the same time, we’re seeing a meaningful shift in recognition that cruise is a leader in sustainable operations.”
The panel pointed to cruising’s perceived value compared with land resorts. Despite socal media posts about extra charges while on board, cruising offers incredible value compared to resorts, Liberty said..
Over-charging is less prevalent at sea than on land, said John Chidsey, president and CEO of Norwegian Cruise Line Holdings. “I still think the value proposition is overwhelming in relation to the land world. You can’t ever say don’t worry about it, but I think there’s still a lot of headroom there.”
Story by Wallace Immen, The Cruisington Times
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