Why Cruise Demand Is Even Bigger Now Than Pre-Pandemic

When the Grand Princess — a cruise ship that carried thousands of passengers bound for Mexico — instead sailed into an Oakland, California, port in early 2020, the ship quickly became a symbol of the COVID-19 pandemic. The vessel's passengers were among the first documented cases of coronavirus in the U.S. And as they waited — quarantined in their onboard staterooms — the image of a floating city-state adrift in a sea of uncertainty became a defining image of the era.

Journalists, politicians and infectious disease experts have referred to cruises as “petri dishes.”

Yet, despite early skepticism and pandemic-induced challenges, the cruise industry has not only survived but thrived. In fact, demand for cruises is now even higher than it was before the pandemic, and cruise companies say it’s showing no signs of slowing.

Cruises make a comeback

The number of cruise transactions worldwide in the first quarter of 2024, including bookings and onboard purchases, was about 16% more than the same period in 2019, according to a 2024 report from the Mastercard Economics Institute.

More money is floating into cruises, too. Mastercard found that, as of May 2024, nine out of the last 10 all-time record spending days in cruises occurred in 2024. According to Bank of America credit and debit card data from May 2024, spending on cruises was up 12% year-over-year.

Expect those trends to hold — and accelerate — in 2025.

Royal Caribbean posted a record-setting second quarter, with revenue rising to $4.5 billion, up from $4.1 billion the same quarter the previous year. The company said it is seeing “robust demand across all key products and markets,” and occupancy reached 110% — a number that reflects cabins with more than two guests.

Meanwhile, Norwegian Cruise Line posted record Q2 revenue of $2.5 billion, up 6% year-over-year, and said its advance ticket sales balance reached an all-time high of $4 billion, a strong signal of demand to come.

Why are cruises so hot in 2025?

A few factors indicate why cruises are sailing toward growth:

Pent-up demand: Cruises are riding the broader wave of pent-up travel demand. People who skipped cruises (or trips as a whole) in the early years of the pandemic are eager to return — and now they're booking earlier. Norwegian said bookings in Q2 are “ahead of historical levels.”

More (and bigger) ships: Just look to Los Angeles for proof. While megaships have historically been contained to the East Coast, Royal Caribbean's Ovation of the Seas began sailings from the West Coast in June 2025. With capacity for more than 4,100 passengers, it’s now the largest ship sailing from Los Angeles.

Also in summer 2025, Royal Caribbean debuted Star of the Seas, sailing from Port Canaveral in Florida.

• Star of the Seas is the second ship in Royal Caribbean’s new Icon class, following the Icon of the Seas, the world’s largest cruise ship.

• The ship features more than 40 restaurants, bars, and lounges, six waterslides, an indoor AquaDome theater and seven pools including the largest ever at sea.

• It’s also a sustainability benchmark — powered by liquefied natural gas (LNG) and featuring advanced waste and water systems.

Royal Caribbean says demand for Star of the Seas is already “exceptionally strong” and expects it to drive “yield and brand growth” through 2026.

Appeal to older demographics: While there are certainly great cruises for families or cruises for young couples, cruises tend to have special appeal to older folks. According to Bank of America’s internal data from January through May 2024, baby boomers, (which the company defines as people born between 1946 and 1964) make up around half of total spending on cruises.

Top-tier entertainment (that appeals to young, hip audiences): Cruises these days are appealing to younger demographics, too. For example, Queen Symphonic on MSC's World America (which had its inaugural sailing in 2025) is much more than just a tribute show to a popular 1970s band. It's a modern (and edgy) take on the band that still remains supreme today, just reimagined for 2025. Similarly

"Revolution: A Celebration of Prince" on board the Norwegian Cruise Line Aqua (which also had its inaugural sailing in 2025) is one of the edgiest, most high-energy shows you can see anywhere, not just at sea.

Better food: Sure, many cruise lines still serve the equivalent of mediocre dorm food. But many are increasingly bucking that stereotype — and some are merging dining with entertainment.

For example, Disney Wish, which is the newest in Disney Cruise Line’s fleet, capitalizes on "Frozen" fandom with a one-of-a-kind “Frozen”-themed restaurant that includes an Olaf puppet, live music (performing songs from the film, of course) and technology such as invisible fiber optics embedded in the ceiling designed to look like Elsa’s magic.

That’s not the only example of unique experiences that can only be had at sea.

Creative bars: The Sun Princess by Princess Cruises offers a cruise line version of the Magic Castle, which is a famously tough-to-get-into, exclusive club in Los Angeles. The cruise line version, called Spellbound by Magic Castle, guides guests through magic-themed rooms and serves them clever cocktails. The biggest difference between the Los Angeles version versus the cruise version is that the latter is quite easy to get into. All you need is to book a sailing on the Sun Princess and reserve your spot, which means paying an additional $149 admission fee.

Other unique cruise line bars include the Skyy Vodka Ice Bar aboard certain Norwegian Cruise Line ships. The entire bar (including seats and glasses) is made entirely from ice.

Celebrity chef-led restaurants: The dining is just as good as the drinks. Increasingly more ships are leaning on celebrity chefs to create unique menus for exclusive cruise line restaurants. For example, pizza chef Tony Gemignani designed a pizza menu for Princess Cruises that stands out with ingredients such as Soppressata sausage, hot honey, Gorgonzola and sweet fig preserve. Meanwhile, many Royal Caribbean ships have an outpost of Jamie's Italian, which serves fresh pasta from celebrity chef Jamie Oliver.

More cruises on the horizon

Cruise lines are investing in their fleets at a pace not seen since pre-pandemic. Among the notable expansions:

• Disney Cruise Line is set to expand from five to 13 ships by 2031, with the first Japan-based Disney cruise expected in 2029.

• Carnival Cruise Line is preparing its first newbuild in five years, signaling confidence in future demand.

• Royal Caribbean’s expansion includes new ships, private islands and beach clubs, like the Royal Beach Club in Nassau, slated to open in December 2025.

Sure, the pandemic cast a long shadow over the cruise industry. But going forward, the industry appears to be full steam ahead.