First-time passengers have increased by 27% over the previous decade, with multi-generational travel representing 28% of passengers. Major operators are projecting strong performance for 2025, with operators such as Royal Caribbean seeing their shares increase by 12% at the start of the year.
According to Crystal Pernici, Global Director, New Ventures, “Demand is as strong as ever in the cruise industry. While that’s certainly welcome for cruise operators, this level of demand makes the revenue risk even greater. Given late changes in booking behavior, the increase in higher-ticket fare demand, and inconsistent historical patterns, operators may be missing opportunities by filling their ships “too early” with overly discounted fares that may be displacing a significant number of higher-value passengers.”
Strong demand has encouraged others to set sail, especially in the luxury market with notable new entrants such as Ritz-Carlton and Four Seasons. Departing between May and September 2026, The Ritz-Carlton Yacht Collection will offer 13 voyages aboard Luminara, marking the fleet's first ever voyages in Alaska. Four Seasons will offer Caribbean and Mediterranean voyages starting June 25, 2026 on the first luxury yacht which features 95 residential-style suites. According to Four Seasons CEO Alejandro Reynal, the company's venture into luxury yachting is part of a broader strategy to provide an integrated luxury experience across all travel touch points.
Technological Advancements
Six years ago, cruise expert Ian Richardson identified Low Earth Orbit (LEO) satellite systems as an emerging technology still a couple of years from reality. Now, as Richardson notes, “The likes of Starlink have come in and massively changed the guest and crew experience. The system architecture and how onboard applications are being designed use the cloud a lot more are all because of these much more reliable connections that we have now at sea.” This advancement is evident in offerings like Norwegian's “More At Sea” package, which now includes Starlink WiFi alongside premium amenities.
Richardson further explains how technology is improving operations: One example is using machine learning to see what's happening with passenger flow by monitoring real time CCTV cameras and directing the crew to the right area of the ship.
Agilysys Senior Vice President Rohith Kori envisions an enhanced future, “Imagine a future where guests use mobile devices to effortlessly book personalized activities in port and enjoy tailored services on board, with personalized suggestions available at their fingertips.” He adds, “The fusion of personalization, cutting-edge AI, and smart infrastructure will shape the next era of cruising, ensuring guests enjoy unmatched, ultra-convenient experiences while staff members act on data-driven insights that maximize operational efficiency and revenue opportunities across all traveler segments."
Industry AI expert Michael Goldrich explains the transformation like this, “AI shifts from being a tool that simply stores data to an active collaborator that optimizes operations, ensuring smoother experiences for both staff and guests. This reduces friction, enhances efficiency, and creates a cruise experience that feels effortless.” He elaborates that, “With AI, personalization becomes proactive and effortless. AI anticipates needs, recognizing patterns from guest preferences, past stays, and real-time behavior. Rather than manually booking activities, AI curates itineraries that evolve dynamically based on real-time interests."
New Venture's, Pernici concurred with the sentiments expressed by others and added that, “Understanding your customer is a big focus. Established players in the analytics-based demand forecasting field have been making significant strides with AI and machine-learning, allowing operators to detect changes in demand patterns and react accordingly with revenue-optimizing changes in demand-based pricing. We will see more cruise lines exploring this technology to tailor offers based on the demand patterns and booking windows of their unique guest segments."
Improving Guest Experience through Technology
Cruise ship internet connectivity is not only becoming more affordable but also significantly faster, thanks to new satellite technology. According to the Points Guy, Gene Sloan, “New satellite systems, paired with multimillion-dollar investments in shipboard technology, are making things better in a big way. A turning point came just over a decade ago, in 2014, when cruise giant Royal Caribbean partnered with satellite company O3b Networks to create a new onboard internet system that it claimed was six times faster than anything else at sea. Called Voom, the system tapped into satellites operated by O3b that could shoot their beams directly at ships as they moved.
More recently, Royal Caribbean — like many other cruise lines — has switched to using SpaceX's Starlink satellite service for its internet service at sea, which is even faster. On January 1, 2025, Norwegian’s “Free At Sea” package became “More At Sea.” The inclusive package already included 150 minutes of free WiFi per guest. The “More At Sea” package also includes among other things, Starlink WiFi, an unlimited open bar with premium liquor brands and craft cocktails, and specialty dining credits. Princess Cruises' OceanMedallion™ Platform has created a comprehensive ecosystem of guest-centric technology including its own wearable OceanMedallion device enabling contactless interactions personalized to each guest. Other features include enhanced digital wayfinding and location-based services with recommendations.
The AI-driven predictive service anticipates a guest’s desire and provides personalized recommendations. Regarding future port developments, Rohith Kori predicts, “Innovative technologies such as smart ports will enable guests to enjoy streamlined boarding, enhanced shore excursions, and frictionless transitions between ship and land, creating more luxurious and convenient voyages."
Sustainability and Responsible Tourism
The cruise industry has committed to reaching net zero emissions by 2050, supported by a planned $20 billion investment in green initiatives. Current environmental practices include liquified natural gas reducing emissions by up to 40%, shoreside power capabilities in 85% of new builds, and exhaust gas cleaning systems in 68% of the global fleet.
Cruise lines are actively partnering with local authorities to manage tourism impact. Cities like Dubrovnik have implemented limits on daily cruise ship arrivals, while Santorini maintains an 8,000 daily visitor cap. Venice has restricted large ships from its lagoon altogether. The industry is responding by offering extended port stays and diversifying shore excursions.
Future Outlook
Ian Richardson summarizes the industry's trajectory, "My view is the future of the cruise industry is really going to be defined over the next few years by how well the cruise lines manage to harness their data and build the necessary platforms and integration to leverage their data. This will help them prepare for the AI revolution that we are seeing in all the other industries at the moment.”
Pernici has this industry outlook. “In other hospitality sectors we’ve seen the global behemoths move their focus from building technology in-house in favor of established vendors, like Marriott seeking to replace their legacy central reservations system,” she said. “Cruise lines will come to a similar conclusion; that their resources will be better spent enhancing the cruise experience and partnering with established technology vendors to address their commercial objectives.”
The combination of environmental responsibility, advanced technology, and enhanced guest experiences, supported by continued robust data security measures and privacy protocols, suggests a promising future for cruise travel. As the industry continues to evolve, the integration of these elements will be crucial in shaping the next generation of cruise experiences.
