With an exceptionally long and cold winter behind us, many Canadian holidaymakers are planning their annual summer break as they look forward to sunny days and a break from the grind. As every year, a sizable segment of these travelers will be hitting the high seas aboard a cruise liner. Long driven by the Baby Boomer cohort, ocean cruising is increasingly getting transformed by a younger demography seeking experiential travel and bucket-list vacations.
The cruise industry is projected to continue to grow throughout 2019 with 30 million travelers expected to go on cruise, up 6% from 28.2 million in 2018, according to a recent report from the Cruise Lines International Association (CLIA). While the Caribbean and Mediterranean account for half of all cruise itineraries, a growing number of destinations are being added from other parts of the world, including China which accounts for the second largest number of cruise passengers globally after the U.S. As a result, the global cruise industry revenue is forecasted to jump from US$35.5 billion in 2016 to US$57 billion in 2027, reports data aggregator Statista.
As more travelers splurge on cruise vacations, they create a growth tailwind for cruise operators that are responding to demand growth with new destinations, diverse durations and more attractions. The leading players are expanding their fleet, creating and customizing itineraries, on-deck activities and dining options keeping a more diverse pool of customers in focus. Many of these operators are also casting their net beyond their conventional markets to burgeoning but under-served parts of the world, according to Morningstar equity research.
