Cruising has gotten more expensive.
Fares have been driven higher as demand has increased. You can find deals on cruises, but fares at Royal Caribbean, Carnival and Norwegian have steadily climbed past prepandemic levels.
Related: Experienced Royal Caribbean cruiser shares one big tip
Cruise lines have pricing power because they still offer strong value compared to land-based vacations.
Families often decide between a Disney World or Universal Studios trip versus a cruise. And in many cases just the tickets for either of these theme parks will cost more than the basic fare for a cruise for a family. Cruises, of course, include a near-endless array of food, entertainment, basic beverages and more, while all of that, plus lodging, costs extra when on a theme-park trip.
In theory, you could book a basic-fare cruise on Royal Caribbean, Carnival or Norwegian and not spend an extra dime. Nothing requires you to book specialty dining or shore excursions, or to pay extra for alcohol, soda, fresh juice or specialty coffee.
You don’t have to spend that money — but new data from all three major cruise lines show that people are opening their wallets when it comes to on-board spending.
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Added-fee restaurants are a driver of onboard spending.
Image source: Royal Caribbean
On-board cruise ship passenger spending is up
Onboard spending does not literally mean the passengers have to spend the money on the ship. It includes purchases made before a cruise, and the mix has traditionally been about 50/50.
Overall, the numbers have been rising, according to earnings-report data collected by Cruise Industry News.
Norwegian Cruise Line Holdings reported gross onboard spending per passenger per day estimated at $126.85 and net $98.51 (after related costs) for the second quarter. That’s up significantly from $96.70 and $75.35 respectively in Q2 2019, the last normal year before the cruise industry recovered from the pandemic.Royal Caribbean reported gross onboard spending per passenger per day estimated at $92.44 and net of $74 for Q2 2024, compared with $69.67 and $54.27 respectively in the 2019 period.Carnival Corp. reported gross onboard spending per passenger per day estimated at $83.41 and net of $57.57 for the second quarter ended May 31, 2024, compared with $66.25 and $44.97 respectively in the 2019 quarter.
Those jumps have been driven by a number of factors. The first, and perhaps most significant, is that prices for extras including drink packages, added-fee dining and internet have generally risen. In addition, all three cruise lines have added new ships with more added-fee options.
Royal Caribbean shares secret of its success
Royal Caribbean executives repeatedly mentioned increased on-board spending during the cruise line’s second-quarter earnings call.
“Once booked, guests are quickly engaging with us and buying significantly more onboard experiences per booking than in the second quarter of last year, both earlier and on meaningfully higher [available passenger days,] translating into higher satisfaction rates and higher on-board spend,” Chief Executive Jason Liberty said.
He does not think it’s purely a function of the economy that people are spending more. He says Royal Caribbean has positioned them to open their wallets.
“Putting customers at the center of our orbit has been critical to our success and allows us to meet guests for all of life’s moments, transforming the vacation of a lifetime into a lifetime of vacations,” he said. “A key differentiator for us on this journey is our hardware, where we are constantly innovating.”
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Norwegian Cruise Line CEO Harry Sommer also commented on increased onboard spending during his company’s second-quarter earnings call.
“During the second quarter, we observed continued strength in onboard revenue as well, which was driven by our guests’ continued enjoyment of our short excursion and onboard amenities including specialty restaurants and communication services, which have been bolstered by the continued implementation of Starlink across the fleet,” he said. Starlink is the satellite-delivered internet service from Elon Musk’s SpaceX.
Related: Get the best cruise tips, deals, and news on the ships from our expert cruiser
