Cruise tourism market set to grow by $4.24 billion
The cruise tourism market size is expected to grow by USD 4.24 bn from 2021 to 2026, according to Technavio. However, the growth momentum of the market is expected to decelerate at a CAGR of 11.97% during the forecast period. The strong global economic recovery and increasing HNWIs are driving the cruise tourism market growth, but factors such as rising environmental concerns may challenge market growth.
Driver, Trend, and Challenge
The strong global economic recovery and an increasing number of high-net-worth individuals (HNWIs) in developed and developing economies are driving the global cruise tourism market growth. The growth is attributed to an increase in domestic consumption and trade and an uptick in investments since the global economic recession in 2008. Moreover, the increase in the number of working women has further contributed to the high income levels of individuals and their families. Such factors are expected to support the market growth in the coming years.
Growing consumer adoption of repositioning cruising, owing to tourers’ inclination toward exploring different destinations by availing best cruise deals, is a trend that is expected to impact the industry positively during the forecast period. The growth is attributed to the availability of cost-effective one-way flights, the inclusion of exotic itineraries, and cost advantages associated with repositioning cruising compared with regular.
The rising environmental concerns are challenging the global cruise tourism market growth. This is due to the presence of many passengers and crew members. For instance, an average one-week cruise voyage with 2000 to 2500 passengers along with crew members generates around 2,00,000 plus gallons of sewage stream, including oily bilge water, greywater, and hazardous waste. Such factors are projected to hamper the growth of the current market during the forecast period.
Major Cruise Tourism Companies:
- AmaWaterways LLC
- Ambassador Cruise Holidays Ltd.
- American Cruise Lines
- Carnival Corp. and Plc
- Compagnie du Ponant
- Cosmos Tours Ltd.
- Genting Hong Kong Ltd.
- Kerala Shipping and Inland Navigation Corp. Ltd.
- LaVista Travel
- MSC Mediterranean Shipping Co. SA
- Norwegian Cruise Line Holdings Ltd.
- Ocean World Ltd.
- Royal Caribbean Cruises Ltd.
- Saga Group Ltd
- The Walt Disney Co.
- TUI AG
- Viking River Cruises Inc.
- Virgin Cruises Intermediate Ltd.
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Cruise Tourism Market Application Outlook (Revenue, USD bn, 2021-2026)
- Ocean cruising - size and forecast 2021-2026
- River cruising - size and forecast 2021-2026
Cruise Tourism Market Geography Outlook (Revenue, USD bn, 2021-2026)
- North America - size and forecast 2021-2026
- Europe - size and forecast 2021-2026
- APAC - size and forecast 2021-2026
- South America - size and forecast 2021-2026
- Middle East and Africa - size and forecast 2021-2026
North America will have the highest market share growth during the forecast period. The rapid increase in passenger flow in countries such as the US will drive the growth of the cruise tourism market in North America during the forecast period. Moreover, market growth in this region will be faster than the growth of the market in Europe, South America, and MEA. The US is a key country for the cruise tourism market in North America.