U.S. cruise passengers are expected to hit a record high for four consecutive years, U.S. cruise stocks are making a strong comeback
The U.S. cruise tourism market continues to be hot, with an estimated 21.7 million American tourists expected to take cruises in 2026, setting a new high for four consecutive years. Cruise travel is gradually becoming a mainstream and affordable option, attracting a large number of tourists. Despite high airfare and hotel prices, cruise companies are attracting new customers through promotions and discounts. Analysts point out that the cruise industry is rapidly recovering, and the number of tourists is expected to continue to grow in the future
According to the Zhitong Finance APP, the cruise tourism market in the United States continues to thrive and is expected to set new records next year. According to data from the American Automobile Association (AAA), it is estimated that 21.7 million American tourists will take cruises in 2026, an increase from 20.7 million this year. This will mark the fourth consecutive year of record-breaking numbers, indicating that cruise tourism has gradually become a mainstream and affordable travel option, shedding its image as a mode of travel limited to retirees.
This growth comes after a cooling off of the post-pandemic travel boom, during which the entire industry faced rising costs. Although airfare and hotel prices remain high, many Americans who cannot afford to fly or choose to cancel their travel plans altogether are viewing cruise travel as a more economical vacation option. The cruise industry was once the hardest-hit sector in the travel market, but it is now rapidly recovering. Data from the association indicates that nearly half of cruise passengers today took their first post-pandemic trip in 2022, attracted by discounts.
Truist Securities analyst C. Patrick Scholes stated, "Initially, we saw a lot of revenge travel, but the cruise industry entered this space a bit later. Now, they are increasing traffic by promoting their advantages."
AAA predicts that from 2024 to 2025, the number of cruise tourists in the United States will grow by 8.4%, and by another 4.5% by 2026.
Cruise companies are taking full advantage of tourists seeking bargain prices, promoting cruise travel as a more cost-effective option compared to land resorts. Ongoing promotional activities and membership discounts are helping to attract new customers and repeat visitors. For many tourists, this cost-effectiveness and convenience are simply impeccable.
Melius analyst Conor Cunningham stated, "As long as hotels continue to raise room rates, the cruise business will continue to capture market share."
Cruise operators are heavily investing to enhance the at-sea vacation experience. New entertainment offerings and private island stops are helping to broaden their appeal, making it no longer limited to retirees and family groups. Reports indicate that cruise companies have invested at least $1.5 billion to upgrade or expand private islands in the Caribbean.
Investors have begun to take notice. This year, the stocks of the "big three cruise companies"—Carnival Corporation (CCL.US), Royal Caribbean Cruises (RCL.US), and Norwegian Cruise Line (NCLH.US)—have surged significantly due to strong booking volumes. The stock prices of these three companies have all risen over the past six months, outpacing the S&P 500 index. Carnival Corporation raised its full-year earnings forecast for the third consecutive quarter in September, citing record future bookings and rising net yields
