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Americans’ cruise vacations to see slower growth in 2025, industry group forecasts

by January 27, 2025
written by January 27, 2025

(Reuters) – Nearly 19 million Americans are expected to go on cruise vacations this year, but passenger growth is likely to cool off after seeing a boom post pandemic, travel group AAA forecast on Monday.

Passenger volume this year is projected to grow 4.5% from 2024, when 18.2 million Americans went on ocean cruises, according to the industry group. The increase is slower than the 7.7% rise last year and a solid 42% growth in 2023.

Cruise operators were among the worst hit in the travel industry during the COVID-19 pandemic, but their recovery was sharp. Despite the slowing growth, 2025 is expected to be the third straight year of record cruise passenger volume, AAA said.

AAA expects the Caribbean to be the top destination for American travelers this year.

Operators such as Royal Caribbean (NYSE:RCL), Carnival (NYSE:CCL) Corp and Norwegian Cruise Line (NYSE:NCLH) Holdings saw record demand last year as more people across age groups chose cruises despite a rise in itinerary prices.

This boosted their stocks, with Royal Caribbean’s shares gaining 78%, while those of Carnival and Norwegian Cruise rose about 34% and 28% respectively last year.

AAA’s forecast is calculated based on scheduled cruise itineraries covering all major cruise vessels, the economic outlook and travel sector trends. The forecast is prepared in partnership with Tourism Economics, an Oxford Economics company.

This post appeared first on investing.com
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