RISING TIDES
Observations from the IMC Research Process

We’re Gonna Need a Bigger Boat: Cruise demand is cruising at record speed

2025 bookings are outpacing pre-pandemic levels, with pricing holding strong even as capacity expands.

• A sea of spending. Leisure travel spend is proving remarkably resilient as consumers are channeling disposable income into experiences over goods. Travel continues to command wallet share, with cruise vacations benefitting from their value proposition: all-inclusive packages, global itineraries, and a “big trip” feel at a lower per-day cost than land-based alternatives.
• All aboard the growth curve. The Cruise Lines International Association projects passenger volumes will top 40 million in 2025 – 10% above 2019 peaks. This growth comes as fleets expand with more efficient, higher-yield ships, enabling operators to increase capacity while maintaining pricing power. Strong forward bookings and limited discounting suggest demand is more than keeping pace with supply.
• The tide is rising and it’s lifting all ships. Royal Caribbean (RCL) leads with blockbuster demand for its Icon-class ships, Carnival (CCL) is executing a debt-reduction turn, Norwegian (NCLH) is targeting premium travelers, and Viking (VIK) is carving out a fresh niche with river and luxury voyages.