Your Next Vacation Destination Could Be a Private Island

All Aboard

Cruises are sometimes considered to be a luxury geared primarily for retirees. But the businesses behind them don’t see it that way. Companies like Royal Caribbean (RCL) and Carnival Corporation (CCL) are expanding their offerings to cater to a younger crowd of travelers.

Uncharted Waters

Half of all Royal Caribbean’s passengers are now millennials or younger, the company’s CFO Naftali Holtz told The Wall Street Journal. And more than a third (36%) of cruise travelers globally are millennials or Gen Zers, per Cruise Lines International Association data, cited by WSJ.

This growing slice of the sector’s consumer base has different habits and preferences than older travelers. For one, many of these travelers are still in the workforce, and may not be able to afford to take time off for a weeklong cruise excursion. They might also opt for a more adventurous experience over a laidback getaway. Cost could be a bigger factor for younger consumers than for an older generation of travelers who have had more time to build wealth.

In response, cruise companies are experimenting with new offerings. This summer, Royal Caribbean launched a new ship designed specifically for shorter journeys. The company also invested in upgrading its private Bahamian island, CocoCay, to offer adults-only experiences like a beach club with a swim-up bar and private cabanas.

Carnival has a similar club on its own private island, set to open next year.

Riding the Wave

This is part of a larger wave of post-pandemic recovery efforts in an industry that was hit particularly hard by Covid-era lockdowns. Cruises lagged behind airlines in capitalizing on the “revenge travel” boom and had to lower prices to lure consumers back.

Now that cruise lines are offering better deals — and casting a wider net — these excursions may be poised to surge in popularity among travelers, regardless of age.

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