ORLANDO, Fla. – In the spring of 2020, the global lockdown, a direct result of the COVID-19 pandemic, led to the closure of countless businesses worldwide. Among those hit hardest: the cruise industry.
Hundreds of cruise ships around the world were either stuck in port, anchored close to land, or sailing in lazy loops to keep parts moving on some of the most complex machines on the planet. Survival for some lines was touch and go – Crystal Cruises filed for insolvency in 2022 but was bought by A&K Travel Group and relaunched in 2023. Some other lines ceased operations, while most had to take drastic measures to literally stay afloat.
Carnival Corporation & plc (NYSE stock ticker CCL – parent company of Carnival Cruise Line, Princess Cruises, Holland America, Cunard Line, and four other cruise lines), lost billions of dollars and sold off or scrapped dozens of ships to cut costs. Among those reductions, Carnival got rid of six ships, Holland America reduced its fleet by four, and Princess jettisoned three vessels.
At the end of 2019, CCL had about $10 billion in long-term debt. Nine months into the lockdown that debt was up to $26.5 billion, and by Jan. of 2023, it was hovering at around $35 billion.
But what a difference a few years make.
CCL reported $6.3 billion in revenue and $565 million a net income for Q2 2025, a sharp turnaround for a company that was once on life support. Total revenue for the U.S. cruise market is projected at $27.5 billion this year, with analysts forecasting compound annual growth rates exceeding 7.2% through 2030, signaling strong future prospects amid rising global travel demand.
That’s not just a rebound – it’s a resurgence fueled by pent-up demand and shifting travel habits. 2025 is shaping up to be the best on record for the American cruise industry, setting new benchmarks for passenger volumes, revenue, and company profits.
Stewart Chiron, a cruise industry analyst known as ‘The Cruise Guy’, says “More people are cruising in 2025 and bookings for future cruises have never been higher.”
He added, “Occupancy is one thing to look at, but future bookings are the real bellwether for how the industry has bounced back and how it is exponentially growing.”
In January, industry analysts estimated that a record 19 million Americans would embark on cruises worldwide for the year, marking a 4.5% increase over 2024 and representing a staggering 34% rise compared to pre-pandemic numbers from 2019. Industry estimates now forecast a record 20.7 million passengers for 2025, with a forward looking estimate 21.7 million Americans cruising in 2026. By 2027, J.P. Morgan projects there will be 40 million cruise passengers worldwide.
Choices have also never been better for anyone looking to embark on an at-sea/lots-of-stops-in-great-locations vacation.
The big three dominant cruise companies – Carnival Corporation & plc, Royal Caribbean Group and Norwegian Cruise Line Holdings – are now facing increasing competition from single-brand operators like Disney Cruise Line (seven ships in its active fleet with one ship under construction and four more planned to be in service by 2031), MSC (23 ships in its active fleet with two more under construction and two others on order), and Virgin Voyages (four ships in active fleet with no additional vessels planned or on order).
[WATCH: Disney Destiny makes special stop at Port Canaveral]
“Demand is so high that cruise lines have stepped up their plans for ship building in anticipation of future demand,” said Chiron.
So, why has there been such a surge in people taking cruises as of late? As James Carville famously said in 1992, “It’s the economy, stupid”, and that still holds true today.
If you’ve tried to book airfare or hotels lately, you’ve probably noticed post-COVID prices are sky-high. Chiron says cruising remains one of the best travel values as costs remain competitive when factoring in transportation, lodging, entertainment, excursions, and especially meals. Cruising can also (but not in all cases) bypass airports with airline flight delays, extra charges for bags, and transfers or rental cars once you reach your destination.
“People are looking to maximize their vacation dollars,” said Chiron.
He added, “Cruising continues to provide a higher value than land-based vacations. Simply put, you get more for your money.”
But does that money go as far as it used to?
“Cruises are now more expensive than they were five years ago,” says Chiron who adds “but when it comes to leisure travel, prices have gone up across the board.”
Chiron points to the rate of recurrence of resort fees.
“Some hotels and resorts are charging more but giving less. Resort fees are popping up more frequently,” he said.
Chiron says there are discounts to be found with cruses – you just have to know where to look.
“The earlier you book the better,” he says. “The lowest prices and best cabins are available early in the booking process. Also, if you’re flexible with your travel dates and the ships you want to sail, there are huge savings to be found.”
Chiron adds the savvy traveler also doesn’t overlook discounts such as residency, military, and fare reductions for seniors.
For Americans taking cruises, trips to the Caribbean/Bahamas/Bermuda continue to dominate the market, accounting for about 43% of all booked itineraries in 2024 (followed by the Mediterranean and European destinations). Operators are also diversifying their offerings, venturing into niche domestic markets such as the Great Lakes, Alaska, and river cruises.
Cruise lines are also rolling out themed cruises ranging from wellness and culinary-focused itineraries to adventure and family-centric voyages.
This year Margaritaville on the Sea had a doggie cruise (BYOP – Bring Your Own Pup) sailing out of Tampa. Companies will also charter cruise ships for themed cruises. New Orleans was the home port for Royal Caribbean’s 2025 Gothic Cruise (live concerts and masquerade balls) and a Norwegian ship is set to sail out of Miami later this month for a clothing optional adults-only “Temptation Caribbean Cruise”.
And who’s trying out cruising these days? While Baby Boomers most recently formed the core base of cruisers, according to Cruise Lines International Association’s 2025 State of the Cruise Industry Report, Millennials and Generation X now comprise approximately half of the new cruise customer base. That generational shift could shape how cruise lines design experiences for decades to come. Another surprising fact according to CLIA: Nearly one third of cruise guests sail with three or more generations.
Is cruising for everyone? Some of the most often heard complaints are:
- Passengers want more time at some ports
- Itineraries can change because of last minute scheduling problems or severe weather
- Costly add-ons like drinks, tips, and excursions can quickly add up
- Some people prefer the option for part of their trip to be quiet and solitary
Still – for every negative, there are positives as cruise lines are responding to passenger feedback. Some cruise lines offer all-inclusive packages or classes where passengers won’t need to worry about expenses like drinks, tipping, or Wi-Fi. Some cruise lines are increasingly offering overnight ports of call to let passengers get an immersive experience at some of their destinations.
Private islands and exclusive destinations are according to Chiron “the next arms race” in the industry. They’ve quickly become the cruise industry’s luxury battleground by offering exclusivity, curated experiences, and high satisfaction scores.
Royal Caribbean owns the private island at Coco Cay (Bahamas), Carnival has Celebration Key (Freeport) and Half Moon Cay (for Holland America). Disney has Castaway Cay (near Great Abaco Island) as well as a new private destination on the island of Eleuthera (Lookout Cay at Lighthouse Point). Private islands and exclusive destinations combat busy ports of call and are exclusive to only their guests.
After being adrift for some years, the cruise industry has found its course again, and for millions of Americans, it really is full steam ahead.
If you’re thinking about taking a cruise, research different cruise lines, different ships (they come in a variety of sizes with a varying amenities), and itineraries to find the best fit. Also, don’t forget passenger capacity and ratio of staff to passengers (yes, it makes a difference). And of course, all of this is balanced against price and how much you can personally afford or willing to spend.
Finally, it goes without saying you should book with a reputable travel agent or established platform that can also provide added layers of consumer support and answer any questions.
Bon voyage!