Picture this: A vacation world once synonymous with leisurely days for the ‘nearly dead’ is now being transformed by young adults eager for affordable thrills on the high seas— but is this youthful surge just a fleeting wave, or a true revolution in travel? Buckle up, because the cruise industry’s rebirth story is more intriguing than you might think, and it starts with a pandemic paradox that no one saw coming.
Thom Puiman’s introduction to cruising began in an unexpected way—a ‘cruise to nowhere’ back in 2020. This was a unique sail from Singapore into open international waters, with no port stops, designed as a quick fix for a sector reeling from the COVID-19 outbreak’s global shutdowns. For Puiman, however, it ignited a lasting enthusiasm. ‘At the time, it felt like my only slice of normal life, and I quickly fell in love with cruising,’ he shares.
Now 35 and working as a technology director in Bangkok, Puiman represents a fresh influx of travelers who’ve embraced cruises since travel restrictions eased post-pandemic. They’re drawn primarily by slashed prices, packed-on amenities, and unmatched ease.
Industry insiders know the old stereotype: cruises are for the ‘newly wed, overfed, and nearly dead.’ Yet, aboard today’s massive floating resorts, passenger profiles have diversified significantly, propelling cruises past the downturns hitting other travel sectors in the US and Europe in 2025.
Cruise leaders report that older Gen Z members (in their late 20s) and millennials are flocking to sea-based getaways, lowering the average passenger age despite aging populations in key markets like Europe, Asia, and North America. A survey by the UK travel group Abta revealed that nearly 20% of 25- to 34-year-olds had cruised in the last year, a sharp rise from under 5% in 2019.
This demographic pivot stems from targeted efforts by major players, especially Royal Caribbean Group—the globe’s top cruise empire. Analyst Sharon Zackfia from William Blair notes how Royal Caribbean has ‘truly championed attracting younger crowds and redefining cruising as cool.’ This approach has catapulted the company to a $70 billion valuation (around S$91 billion), far outpacing rivals like Carnival at $35 billion and Norwegian at $9 billion. Its stock has more than doubled pre-pandemic levels and surged tenfold from its Covid lows.
Interestingly, cruises seem somewhat shielded from broader economic woes sapping other travel spending. US families shelled out 9% more on cruises in September 2025 compared to the same month in 2024, per Bank of America data, while overall travel expenditures dipped 2% due to slumps in hotels and flights. Royal Caribbean, Carnival, and Norwegian have all upped their full-year profit forecasts, buoyed by steady bookings through 2025.
This contrasts starkly with the pandemic’s dark days, when infections ravaged crews and passengers, ports barred ships, and reservations evaporated. The Diamond Princess, run by Carnival’s Princess Cruises, alone represented over half of global Covid cases outside China in February 2020, with seven deaths during a grim Japanese quarantine.
‘I recall folks wondering if cruising would ever bounce back,’ says 31-year-old influencer Emma Le Teace, who launched Cruising Isn’t Just For Old People (now EmmaCruises) in 2016.
Those worries feel like a distant memory now. The sector welcomed nearly 10% more passengers in 2024, reaching a historic 35 million. But here’s where it gets controversial: Could this momentum be waning? With pent-up demand possibly exhausted and consumers tightening budgets, plus operators hiking fares, inflation-sensitive travelers might jump ship.
A recent Morgan Stanley poll of US travel agents noted softening cruise reservations, influenced by a government shutdown, high inflation, and Hurricane Melissa. Analysts like Jamie Rollo remain optimistic, suggesting ‘enthusiasm for cruises stays strong, though some are playing it cautious and delaying bookings.’
A major draw for newcomers, especially the young, is the unbeatable value. Cruises now offer a wider ‘discount’ compared to resort nights than in 2019. Hotels bounced back faster from Covid, jacking up prices ahead of cruises, which were hobbled by CDC rules until July 2022.
Passenger revenues soared 24% over 2019 in Q2 2025, according to Barclays Research using STR analytics. Meanwhile, US resorts climbed 34%, and Caribbean stays hit 59%.
Operators are capitalizing on this gap, as Barclays’ Brandt Montour puts it. Gianni Onorato, CEO of MSC Cruises, explains lower initial prices were ‘essential to lure back our audience.’ For context, value is like getting a full all-you-can-eat buffet plus entertainment for less than a single night at a fancy hotel—perfect for budget-savvy millennials.
Take Caitlin Nixon, a 28-year-old UK data analyst, who booked her maiden voyage with her husband last December. They snagged a £4,500 package, flights included, for a two-week Caribbean escape on Tui’s Marella line. ‘We aimed to explore new spots without breaking the bank, enjoying snippets of each destination instead of just one,’ she says. ‘Snagging a sale a year ahead, we took the plunge—and loved it.’
Behind this affordability is savvy staffing. Over half of cruise passengers are Americans, but ships tap global talent via seafarer visas, avoiding costly US or European hires. Analysts estimate heavy recruitment from places like the Philippines and Indonesia, dodging local wage hikes in hospitality.
‘Cruises compete against resorts facing labor cost spikes,’ Montour notes. ‘They tap a worldwide workforce for savings.’ This allows cruises to uphold—or boost—service standards, unlike hotels that cut corners post-2020, such as ditching turndown services, as Zackfia points out.
This reliability shines in uncertain times, attracting seekers of all-inclusive predictability, says CoStar’s Jan Freitag. Cruises offer a ‘set-it-and-forget-it’ cost, unlike variable hotel expenses.
But here’s the part most people miss: Targeting youth locks in lifelong fans. ‘Capturing them young means massive loyalty,’ says CruiseCompete CEO Bob Levinstein. Nixon, for instance, is sold on Marella: ‘We’re repeat customers for sure.’
The pandemic, oddly, was a silver lining, per Goldman Sachs’ Lizzie Dove. ‘For the first time, unable to sail, they reinvented everything—from apps to ship designs and adaptable routes.’
Ships have ballooned too; the biggest now double in size since 2000. Royal Caribbean’s Icon of the Seas, at 250,000 gross tons, dwarfs the Titanic fivefold and debuted in 2024.
Operators are shifting to short-haul trips. Royal Caribbean deployed its Wonder of the Seas for 3-4 night Bahamas runs from Miami in August. Carnival follows suit, launching short sailings from Port Canaveral on Mardi Gras starting 2027.
These appeal to novices fearing a wasted vacation and time-starved pros, as Dove and MSC’s Anna Nash explain. Puiman, our convert, added a 4-day Carnival Glory trip from Port Canaveral to his Orlando business stint, opting for the bargain option with minimal itinerary fuss.
Another innovation: Private islands. Royal Caribbean’s CocoCay, revamped for $250 million in 2019, boasts beaches, slides, and trails, with a pier for two megaships. Expansion continues—Royal Caribbean’s Santorini beach club opens soon, their European debut. Carnival invests $600 million in Celebration Key on Grand Bahama, while Norwegian upgrades Great Stirrup Cay for double capacity in 2026.
These are goldmines, as Levinstein says: ‘No port fees, plus onshore profits unattainable in towns.’ Yet, they’re also a response to anti-overtourism backlash. Cannes banned big ships this summer, echoing Venice, and Alaska caps Juneau visitors next year.
MSC’s Onorato defends cruises as ‘ideal overtourism solutions,’ keeping crowds offshore, staggering tours, and easing hotspot strain via private havens. But is this just greenwashing, or a genuine fix? And this is the part most people miss: What about the environmental toll of floating cities?
Influencers like Le Teace are key recruiters. ‘Social media is the go-to for informing youth,’ Onorato says. Platforms like Instagram and TikTok demystify cruises, overcoming first-timer hurdles, adds Carnival CFO David Bernstein.
Executives like Royal Caribbean’s Jason Liberty and MSC’s Onorato see huge growth potential; cruises remain a tiny travel slice—fewer in 2024 than Orlando visitors, per Cruise Lines International Association and Visit Orlando stats.
But unease looms. Royal Caribbean shares plunged 20% post-Q3 earnings in late October, despite raised guidance. Liberty shrugged it off as ‘investors chasing unrealistic perfection amid unrelated consumer noise.’
Citi’s James Hardiman sees it as the end of unending upgrades. Now, focus shifts to per-passenger profits, risking the value that lured the young.
Pricing hikes are paramount, Bernstein insists: ‘We deserve more than resorts for what we provide—even matching would be a win.’ Liberty agrees: ‘Our offerings justify higher fees.’
Yet, economic headwinds may block closing the resort ‘gap.’ Montour warns of diminished pricing clout in leisure travel, forecasting slower growth.
Liberty acknowledges solid client finances—’great jobs, savings, vacation hunger’—but admits vulnerability: ‘People might not spend like before.’
So, where does this leave us? Is the cruise boom a sustainable win for young travelers, or a bubble poised to burst under price pressures and global scrutiny? What do you think—does overtourism fear justify private islands, or should cruises adapt more? And will millennials really keep cruising into their golden years? Share your views in the comments; I’d love to hear agreements, disagreements, or fresh takes on this evolving industry!