Following the pandemic, demand for cruising has reached pre-pandemic levels and seems intent on surging even further.
Carnival Cruises is one line which has reported that, in the last year, its profits have exceeded expectations.
“We’ve consistently been delivering pricing well in excess of 2019 levels while closing the occupancy gap by 11 (percentage) points over the course of the year,” Carnival Corporation President and CEO, Josh Weinstein told travelpulse.com.
Cruise lines serving North America fear the radical price increase may convey unprecedented demand. However, it may also change the demographic of clientele because those who previously considered cruises good value for money could now find them too expensive.
“2023 was the first year that we saw demand align to pre-pandemic numbers,” said Thaybz Khan, Cruises International Head of Product.
Khan acknowledged the price hikes and explained the impact of these increases on the South African cruise market: “Demand does have a direct influence on the fares, but the brands in our portfolio are still managing to strike a balance between being correctly priced for the product and the level of demand.”
As a result, Khan says occupancy on South African-marketed cruises has remained consistent or, in some cases, increased.
“There are no drastic changes to the clients in terms of customers moving away from cruising. Rather, clients are taking their time to ensure that they are finding the best value for money cruise option,” she said. “Cruising is still a very lucrative form of travel and the inclusions make the cruising value proposition unbeatable. As a result, even in the current economic climate, we still see an increasing number of new-to-cruise audience.”
