The cruise industry has always been a bellwether for travel trends, but in 2025, its story is one of remarkable resilience, innovation, and evolving revenue strategies. In a recent webinar IDeaS and Christian Savelli, Director of Cruise Analytics at Tourism Economics (Oxford Economics), explored the forces shaping cruise supply, demand, and pricing power in the post-pandemic era.
In Case You Missed It: 7 Key Topics from Our Latest Webinar with Tourism Economics
1. Moving from Frustration to Forward-Looking Intelligence
The conversation surfaced a historical gap in the cruise sector when compared to the hotel industry: a lack of forward-looking data and tools.
While hotels have long benefited from robust forecasting and dynamic pricing, cruise lines traditionally relied on retrospective analysis. Savelli described how Tourism Economics responded to this forecasting deficit by building a cruise intelligence platform, refreshing deployment and pricing data on an ongoing basis. This shift enables brands to make more agile decisions, adapting to market changes in real time.
With large scale data aggregations like these, the cruise industry and technology providers have a great opportunity to unlock additional data-driven revenue potential.
2. A Remarkable Recovery
It’s no secret the COVID-19 global pandemic brought the cruise industry to a standstill, but its rebound has been nothing short of extraordinary.
By 2025, occupancy levels have returned to pre-pandemic norms, with capacity up 20% and revenue per passenger per day rising by the same margin. Compared to other tourism segments—where hotels and international travel still lag—the cruise sector stands out as a success story. Pricing strength persists, with average rates up 30% over 2019, underscoring robust demand and conditions ripe for further improvement with effective revenue management.
3. The Dynamics of Demand and Pricing
One of the webinar’s central themes was the interplay between discretionary demand and pricing.
While some may argue otherwise, cruises are not a necessity. Yet “revenge travel” and pent-up demand have driven consumers to prioritise experiences. The industry’s ability to avoid deep discounting, as seen in previous downturns, has helped maintain rate integrity and accelerate recovery. Notably, mid- to upper-income travellers—especially baby boomers—are driving growth, leveraging both newfound post-retirement free time and wealth to support the sector’s expansion.
4. Luxury Segment: Growth and Opportunity
Luxury cruising is experiencing explosive growth, with its share of global deployment rising from 4% in 2019 to an expected 6% in the coming years. New entrants, including hotel brands like Four Seasons and Aman, are bringing fresh perspectives to yield management.
Larger luxury vessels are now common, with expansive designs offering the benefits of economies of scale that also help operators meet environmental goals by reducing energy spend per passenger and accommodating newer, more sustainability friendly technologies. The influx of high-net-worth individuals has further buoyed demand, making luxury one of the fastest-growing segments in travel.
5. Lessons from Hotels: Dynamic Pricing, Revenue Management & Where There’s Work to Be Done
As hotel brands expand into the cruise industry, they bring proven revenue management practices that help unlock incremental revenue from their highly perishable inventory.
Historically, cruise pricing relied on seasonal brochures and reactive promotions. The adoption of dynamic pricing—adjusting rates in response to demand shifts—is gaining traction, though it remains nascent. Tools for demand forecasting and competitor price monitoring, standard in hotels, are an increasingly relevant piece of the puzzle for cruise lines seeking to optimise yield and capture late high-value bookings.
6. Supply, Deployment, and Itinerary Innovation
Supply dynamics are evolving, with mega vessels dominating new orders and deployment shifting toward regions like the Caribbean. The rise of shorter itineraries (three- and four-day cruises) requires more passengers to fill ships, presenting both opportunities and challenges. These shorter trips serve as “gateway” experiences, attracting first-time cruisers and building loyalty.
7. Macroeconomic Factors and the Road Ahead
Despite a noisy global economic picture, the cruise industry remains resilient. Capacity growth is expected to slow, helping sustain demand across segments. The value proposition of cruising—especially compared to land-based alternatives—remains strong, with travellers recognising the unique experiences and competitive pricing offered by cruise vacations. As supply and demand patterns shift, the ability to detect change, forecast trends, and react with agile pricing strategies will be critical for continued success.
Are you ready to ride the next wave of cruise industry growth?
Whether you’re a revenue leader, operator, or travel enthusiast, now is the time to rethink your approach. Embrace data-driven decision-making, invest in dynamic pricing tools, and stay ahead of shifting demand. The future of cruise revenue management is unfolding—will you be part of the transformation?
Could your cruise organization benefit from revenue management technology? Connect with us today to learn more.