The past five years have been a rollercoaster ride for the cruise industry. Demand was strong in 2019, the U.S. economy was healthy, and several innovative new ships were recently launched.
Then the pandemic brought the cruise industry to a grinding halt. Cruise lines halted operations in March 2020, and the entire industry remained under a no-sail order from the Centers for Disease Control and Prevention until the end of October of that year. However, ships did not resume service in the United States until July 2021.
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However, when ships finally began sailing again, they did so with many restrictions, including limited capacity, less onboard services, vaccine requirements and other COVID-19 protocols in place. The first “normal” cruises didn’t fully return until mid-2022, when the Centers for Disease Control and Prevention officially ended its COVID-19 program for cruise ships.
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Demand for cruises continues to rise
To say that demand has come back strong would be an understatement. My first post-pandemic cruise was in December 2022 on a Carnival magicThis cruise was filled with travelers who clearly had a pent-up demand to get out and experience the world. Add to that the highly anticipated launch of several new ships, and demand for cruise vacations has never been higher.
The proof is in the numbers. Royal Caribbean’s revenue over the past 12 months was 42% higher than it was in the same period in 2019. Sure, a few new ships have been added to the fleet since then, but their capacity isn’t huge. who But the reason revenues are so high is that the high demand for cruises has made the average price of a cruise vacation much higher than it was in the past.
It’s not just increased demand that’s driving prices higher. Some of it is due to the high inflation of the past few years. According to Consumer Price Index data, the average cost of goods and services in the United States is about 20% higher than it was in 2019. That means cruise lines are having to pay more for food, drinks and other items — and those cost increases are passed on to consumers.
The increase in cruise prices depends on who you ask, but nearly every major analysis has found that prices are significantly higher. Data from Tripadvisor’s Cruise Critic found that prices during the holiday season last year were 43% higher than they were in 2019 for a similar cruise in the Caribbean.
Not only have cruise prices become more expensive. Gratuities, beverage packages, and specialty dining costs have also risen across the cruise industry. For example, Royal Caribbean’s daily gratuity fee has increased 50% since 2015, with two increases in the past two years alone.
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Royal Caribbean prices rise
Now, even with some reliable data, it’s hard to say. exactly How Much Have Cruise Prices Increased? First, cruise prices can vary greatly depending on how far you book, the type of room you choose, the time of year, and many other factors.
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It’s also worth noting that much of the recent demand is driven by a wave of exciting new ships that Royal Caribbean has introduced in recent years. The massive Icon of the Seas didn’t exist in the pre-pandemic world, nor did the two newest Oasis-class ships, Wonder of the Seas and Utopia of the Seas.
These ships generally have the highest prices in Royal Caribbean’s fleet, so it’s fair to say that part of the overall increase is due to the desire to experience the latest and greatest ships.
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After all that said, cruise prices are clearly Overall higher than before the COVID-19 pandemic, and by a large margin.
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