The cruise industry is experiencing an unexpected renaissance, powered not by traditional older passengers but by a surge of younger travelers defying industry stereotypes. Millennials and Gen Z are booking ocean vacations at unprecedented rates, creating a bright spot in an otherwise struggling travel sector.
The Pandemic Spark That Ignited a New Trend
Thom Puiman's first cruise experience came during the pandemic's peak in 2020 - a socially distanced "seacation" sailing from Singapore into international waters without any port stops. What began as a temporary escape from COVID restrictions evolved into a lasting passion for the 35-year-old technology director.
"It was, at the time, the only sense of normalcy for me, and I started loving taking cruises," says Puiman, now based in Bangkok. His story reflects a broader pattern emerging across the cruise industry, where younger passengers are discovering the appeal of all-inclusive amenities and competitive pricing.
Deliberate Strategy Yields Dramatic Demographic Shift
Cruise executives have successfully countered the industry's outdated image of catering primarily to "the newly wed, the overfed and the nearly dead" through targeted campaigns. Royal Caribbean Group has emerged as the trendsetter in this transformation.
Sharon Zackfia, an analyst at William Blair, notes that Royal Caribbean has "really led this charge to get younger consumers on the ship and make cruising cool again." This strategic pivot has produced remarkable results: almost a fifth of 25- to 34-year-olds surveyed by UK travel association Abta had taken a cruise in the past 12 months, skyrocketing from less than one in 20 in 2019.
Financial Success Defies Broader Travel Industry Gloom
While other travel segments face economic headwinds in 2025, the cruise industry sails smoothly ahead. American households spent an average of 9 percent more on cruise holidays this September compared to September 2024, according to Bank of America data. This growth contrasts sharply with a 2 percent overall decline in travel spending, driven primarily by slumps in hotel and airline bookings.
The financial performance speaks volumes: Royal Caribbean, now valued at approximately US$70 billion, has doubled its pre-pandemic share value and seen a tenfold increase from COVID-era lows. The company outperforms competitors Carnival (US$35 billion) and Norwegian Cruise Line (US$9 billion), with all three major operators raising their full-year earnings guidance amid sustained booking momentum throughout 2025.
This remarkable turnaround represents a dramatic recovery from the pandemic's devastating impact, when illness outbreaks, port denials, and booking collapses brought the industry to its knees. Today, younger passengers aren't just trying cruises - they're becoming repeat customers, ensuring the industry's revitalization appears built to last.
