Royal Caribbean International recently launched their newest ship, the Utopia of the Seas, catering to a younger demographic of cruisers. This move is part of Royal Caribbean Group’s strategy to attract more millennials and Gen Z travelers. According to CEO Jason Liberty, one in every two customers across Royal Caribbean Group’s brands is a millennial or younger. This shift in focus is driven by the fact that millennials and younger generations have more leisure time post-pandemic, with a significant portion of that time dedicated to travel. The Utopia of the Seas, with its short cruises out of Port Canaveral, is a prime example of Royal Caribbean’s intentionality in meeting the evolving needs of younger travelers.
Royal Caribbean Group has seen a significant increase in new cruise customers, with double-digit growth compared to last year. Nearly seven out of ten guests on the company’s short Caribbean cruise products are either new to cruising or new to the Royal Caribbean brand. These new customers tend to skew towards a younger demographic, with 90% of them indicating that they plan to cruise again. Moreover, millennials are gaining share across Royal Caribbean Group’s family of brands at a faster rate than any other generation.
Travel advisors have noticed the rising trend of younger cruisers, particularly on short cruise itineraries. Michelle Fee, the founder and CEO of Cruise Planners, highlighted that clients between the ages of 25 and 34 primarily book shorter Caribbean itineraries. These shorter cruises are popular among younger travelers who are working and seeking quick getaways. Anthony Hamawy, president of Cruise.com, noted that short cruises attract a young clientele, contributing to a decline in Royal Caribbean’s average passenger age.
A recent survey by the CLIA found that millennials made up 22% of cruisers, while Gen Z accounted for 14%, totaling 36% of cruise passengers under the age of 43. Despite the shift towards younger demographics, the average age of a cruiser still remains relatively high at 46 years old. Across different generations, there is a high intention among cruisers to repeat their cruising experience, with millennials at 81%, Gen X and baby boomers at 84%, and the Silent Generation at 74%.
Carnival Corp. is also observing changes in the demographics of its customers, with some cruise brands experiencing a slight skew towards younger ages post-pandemic. CEO Josh Weinstein emphasized the importance of catering to a diverse mix of generations, acknowledging that each brand within the Carnival Corp. portfolio may attract a different demographic. While some brands like Holland America Line or Cunard may appeal to older travelers with more time and financial resources, Carnival Corp. remains focused on meeting the needs of a broad spectrum of cruisers.
The cruising industry is undergoing a significant transformation, with a growing emphasis on attracting younger travelers. Royal Caribbean’s strategic focus on millennials and Gen Z, reflected in the launch of the Utopia of the Seas, is a testament to the evolving preferences of cruise customers. As the industry continues to adapt to changing consumer trends, catering to a diverse demographic mix will be crucial for long-term success in the cruising market.