The Voice of the Cruise Industry
Analysis
MENU menu

The CTN Take: what we learned from 2024

The CTN Take part 4 2024

In a year that saw a new Labour government and the reunion of two brothers who were more likely to get into the ring than on stage together, the cruise industry also had its fair share of surprises. Will Payne looks at the standout moments of 2024 and what they tell us about how things could shape up in 2025

If you told me this time last year that Donald Trump would survive an assassination attempt, Thomas Tuchel would replace Gareth Southgate as the new England men’s football manager or Oasis would be reuniting for a world tour, I would’ve laughed you out of the room.

However, stranger things have happened (after all, who could have predicted back in 2020 that cruise would be on track to post its second record-breaking year in a row by 2024?).

When looking back at the last 12 months, a few major turning points – both political and cruise-related – have stuck out, each of which could have a direct impact on the sector’s fortunes in 2025.

‘The only thing we have to fear is fear itself’

Arguably the biggest news of 2024 was Donald Trump being elected US president for a second term. Despite not being everyone’s cup of tea, the Home Alone 2 star was successful in collecting enough Electoral College votes to become the country’s 47th (and 45th) president.

While the fortunes of the cruise industry might not be top of Trump’s agenda when he takes office at the end of January 2025, his win is almost guaranteed to have an impact on tourism in and out of the US.

The so-called “Trump slump” – a term coined by travel experts that described the drop in visitors to the US when he began his first term – is a real possibility. The BBC reported that the number of international visitors to the US fell by 4 per cent in the first seven months of 2017, in contrast to a global rise in passenger figures.

Whether or not this will happen again next year is yet to be seen, but with the ongoing cost of living and the new Labour government’s budget likely to hit spending, Trump may not be the only reason Brits avoid a long-haul holiday next year.

A new dawn

When Keir Starmer’s Labour party first moved into No.10 in the summer of 2024, chancellor of the exchequer Rachel Reeves claimed the new government had inherited a £22 billion blackhole in the public finances.

Despite income tax and National Insurance paid by employees remaining unchanged, a hike in employer contributions of 15 per cent on salaries above £5,000 from April – up from 13.8 per cent on salaries above £9,100 – could have a knock-on effect to long-term earning potential.

If companies must pay more for their staff, they may be reluctant to offer pay rises and bring in additional bodies. Pair this with increasing inflation and the ongoing cost of living, it’s another reason why travellers may look to scale back their holiday plans in 2025.

However, the national living wage will increase for over-21s to £12.21 in April, which could lead to a surge in younger people using their extra pennies to book a holiday. According to recent data from Seascanner and CLIA, its likely they opt for a trip on the high seas.

Shutting up shop

In October 2024 the locals of the Basque city of San Sebastian made global headlines when they took to the streets under the banner: “We are in danger; degrow tourism!”. Prior to that, thousands turned out in the Canary Islands with the same message and in November, even more protestors gathered in Seville.

The last 12 months saw the patience of residents living in tourism hotspots finally run out, with much of this ire being directed toward the cruise industry.

While protests erupted over southern Spain, a flurry major port cities lamented cruise for its contribution to over-tourism and nuisance visitors, adding an additional stain to cruise’s already somewhat tarnished reputation for its impact on port regions.

During the summer, Barcelona confirmed plans to raise tourist tax for cruise passengers who visit the city for less than 12 hours as part of an effort to curb mass tourism to the Catalan capital. Amsterdam, meanwhile, confirmed plans to almost halve the number of ships allowed to dock at its terminal by 2026 from 190 to 100 per year.

Bordeaux, Venice and Mexico are among the other major destinations across the globe to implement or plan to impose restrictions on cruise passengers.

The answer to mass tourism and environmental pressure shouldn’t be a blanket ban on cruise. If someone wants to visit a destination, they will, by any means necessary.

In 2025 we’re likely to see other ports clamp down on cruise calls to follow suit with their shoreside counterparts. It would be preferable that these curbs are introduced with the right goal in mind – for example, a tax on passengers that puts more money in the pockets of local vendors to further enhance a destination’s pulling power for tourism.

New kids on the dock

Earlier this month disruptor brand Virgin Voyages reported a 300 per cent increase in bookings after it experienced its best-ever booking day during November’s Black Friday.

Lines like Virgin Voyages and Celebrity Cruises – who’ve made no secret about their attempts to attract a younger clientele, such as millennials to Gen Zers, to the world of cruising – are finally seeing their efforts pay off.

According to a study by cruise specialist cruise.co.uk, the average age of a cruise guest has come down by 11 years since 2019. The findings, which analysed almost 500,000 passengers, show that the average age of bookings made in 2024 is 55 years old, compared to 66 years old in 2019.

Factors attributed to the decrease include port intensive itineraries appealing to those on the lookout for a city break, and the emergence of speciality dining partnerships between cruise lines and chefs – like Cunard and Michel Roux – helping reshape perception about food on cruise ships.

Whatever happens in 2025, cruise will likely continue on its impressive upward trajectory as it becomes one of the UK’s favourite ways to see the world. Let’s hope booking cabins is a lot easier than securing tickets for the Oasis reunion. Similar global media coverage, however, would be nice.

Will Payne is deputy editor of Cruise Trade News and World of Cruising

Sign In

Lost your password?