Despite Being Budget-Conscious, Gen Z Wants to Cruise

Rebounding faster than other forms of travel, the cruise industry has surpassed pre-pandemic passenger numbers, with projections indicating further growth in the coming years. The resilient market, popular among families, multi-generational travelers and older adults, has now attracted the interest of a new demographic—Generation Z. To better understand the sentiment of the new age cruiser, StudentUniverse, a subsidiary of Flight Centre Travel Group specializing in student and youth travel, conducted a study to examine the thoughts and behaviors of repeat and first-time young adult passengers. 

Surveying U.S. adults aged 18 to 25, StudentUniverse found that 42.1 percent of respondents have taken a river or ocean cruise vacation as an independent adult. First impressions clearly set the tone as those who have previously been on a cruise are more inclined to book another. Among past cruisers, 51 percent are likely to book again with 39.4 percent very likely to do so. To increase booking propensity, cruise lines and travel advisors should be cognizant of Gen Z’s budget constraints as participants stated exclusive discounts for young adults and students (50.6 percent), flexible payment plans (49.4 percent) and discounts on flights to the port city (48.6 percent) would increase their inclination. 

With a majority reporting their household income at less than $50,000, this budget-conscious generation prioritizes experiences where their travel dollars can be stretched. According to 57.4 percent of respondents, the top appeal for taking a cruise vacation is the value for money, followed by onboard experiences (51.8 percent), all-inclusive amenities (51 percent) and visiting multiple destinations (50.6 percent). To emphasize Gen Z’s price sensitivity, 60.2 percent of previous passengers and 75.5 percent of first-time cruisers stated the high cost has hindered their desire to book. Other deterrents included safety concerns and the desire to avoid crowds, which were both higher among those who have not been on a cruise before.

As solo travel continues to rise, StudentUniverse examined the sentiment of Gen Z toward taking a cruise vacation alone. The study showed that those who have taken a cruise before are more likely to set sail solo (62.5 percent) than those who have not been on one (30.8 percent). Despite the rise in female solo travel, 60.8 percent of young women stated they would not take a cruise alone. Interestingly enough, previous cruise experience does play a factor as 61.6 percent of past female passengers said they would book a solo cruise.

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