‘We need to keep pace’: cruise leaders on the challenges facing growth

The cruise sector must continue to adapt to evolving customer expectations, geopolitical uncertainty and tech innovation if it is to keep pace with its lofty growth ambitions, senior industry leaders have said

Speaking during the Ask the Expert Hot Seat panel discussion at Cruise Trade News’ 2026 Cruise Summit in London on Monday (14 September), senior executives from Royal Caribbean International, Marella Cruises, MSC Cruises, Hurtigruten and Abercrombie & Kent discussed the turbulent start to 2026, pricing and the future of the industry.

The session, moderated by Cruise Trade News editor Will Payne and deputy editor Josie Klein, also explored how instability in key markets like the Red Sea is influencing deployment decisions, with MSC Cruises vice president of international sales Antonio Paradiso predicting the disruption caused by the Strait of Hormuz closure could continue for another "six to nine months".

Earlier this year, MSC Euribia was stuck in Dubai due to restrictions on vessels passing through the key shipping channel. "We had to drop some of the destinations… so we're not returning to Dubai or Abu Dhabi for the  foreseeable future," Paradiso said.

However, he said the region could recover quickly once the situation stabilises. “Dubai used to be the hottest destination in winter," he said. "I think in one or two years' time, hopefully, we will have more and more cruise ships visiting that beautiful part of the world."

Meanwhile, Royal Caribbean vice president and managing director EMEA Gerard Nolan said the ability to respond to geopolitical uncertainty was one of the cruise industry's key strengths.

"I think this is one of the beauties of cruise. You can move the ship," he said. As Royal Caribbean International prepares to launch seven ships in the next six years, Nolan said the challenge was deciding where to deploy them. "[Demand] is probably progressing quicker than the infrastructure, and we need to keep pace."

'Prices are rising...  but demand is strong'

Another key discussion point touched on by the panel was the price of a cruise holiday amid the ongoing cost of living crisis, with Marella Cruises chief executive officer Chris Hackney saying cruise was facing the same inflationary pressures as the wider travel sector.

“Prices are rising, and for cruises, I'd say they're inflationary price rises we're seeing at the moment,” he said. “But I think all forms of travel are seeing those increases.”

Hackney said the key question was whether rising prices would eventually put cruises beyond the reach of consumers, but argued the sector remained relatively protected by strong demand and a customer base with greater disposable income. “I don't think we're at that stage at the moment,” he said. “I think demand is strong. I think more and more people are trying to cruise.”

He added that constrained supply could continue to support demand, with European shipyards already carrying order books through to 2035 and capacity expected to grow by around three to four per cent. “I think the demand is there for cruise, I think there will be inflationary increases,” Hackney said, adding that Marella remained “pretty optimistic” about its forward sales.

Customer focus

Key to keeping up with supply is ensuring consumers are being matched with the right product, said Hurtigruten chief commercial officer Iain Powell. He argued that the industry "still does not talk enough about who its customers actually are".

“We don't talk a lot about who the customer is,” he said, advising that cruise lines need to be clearer about their different customer personas and what each is looking for. He said the industry could do more to communicate those distinctions to travel agents.

Powell warned that getting that match wrong could have consequences for future bookings, saying: “If you get it wrong the first time, they're probably not going to come back.”

Elsewhere, senior vice president - marketing strategy for Abercrombie and Kent, Kate Thompson, advised delegates that the industry needs to get better at communicating cruise's value, particularly as customers become more conscious of what they are spending.

Kate Thompson said: “[Consumers] are conscious of the price and the value of what they are purchasing."

She said cruise lines, agents and operators needed to do more to highlight the experiences already included in the fare, pointing to premium dining as an example. “They've got these incredible included experiences,” she said. “But through the agents, through the operators, we need to get better at explaining that value.”

Thompson also argued that better storytelling would be key to reaching younger customers, with flexibility and wellness among the areas she identified as relevant to Gen Z.