Are cruise lines benefitting from higher airfares? According to a new Australian survey, the answer is a definitive yes, with more than half of those polled saying they were now considering a cruising holiday for 2024 on account of inflated airfares.
A recent ACCC report found that the average return international economy airfare is now more than 50 per cent higher than it was pre-pandemic. This compares to a more modest 10-15 per cent rise in cruise prices over the same period.
With this contrast in mind, travel insurer InsureandGo went about looking at what impact that difference was having on the travel intentions of Australian holidaymakers.
Most significantly, it found that half (52 per cent) of Aussies would consider taking a cruise in 2024 on the back of higher fares.
As a result of dearer air travel, the study also reveals that three-quarters (76 per cent) of respondents have developed a general interest in cruising, while two in five (38 per cent) now find cruise holidays more appealing.
At the other end of the scale, just one quarter (24 per cent) said they have no interest whatsoever in cruising.
Interestingly, the study showed that younger Australians are driving the push to cruise holidays in 2024, with three in five (57 per cent) of 18-30s and 31-50s admitting to a desire to cruise this year. By contrast, less than half (44 per cent) of over-50s in the survey want to holiday at sea.
Meanwhile, one in five (19 per cent) of 18-30s and one in five (18 per cent) of 31-50s said they are uninterested in cruising, compared to a third (31 per cent) of over-50s.
Despite the clear link, InsureandGo spokesperson and Chief Commercial Officer Jonathan Etkind, says the cruising trend has not just been boosted by rising airfares.
“Cruises continue to be one of the fastest growing sectors of tourism, with more interest than ever among Millennials and Gen-X travellers thanks, in part, to the all-inclusive costs of cruises,” he says.
“Our research results speak volumes not only about the sky-high cost of international Australian flights post-COVID, but also about the expanding cruise line options for all demographics.
“Cruise lines such as the new Virgin Voyages arriving this month in Australia, offering ships with tattoo parlours and HIIT workout classes, and the recently introduced Disney Cruise Line in Australia are now catering to younger demographics.
“They are also proving more affordable for Aussies on a budget.”
Advantage cruising
When it comes to the advantages cruise holidays have over vacations involving flights, the study found that the all-inclusive cost of cruising (i.e. no hidden costs) is the biggest drawcard, with two-thirds (65 per cent) of those polled flagging this.
Free facilities on ships like pools, gyms, clubs and restaurants are also appealing (56 per cent), while the ease and convenience of cruising is also deemed an attractive proposition (55 per cent) to those surveyed.
Elsewhere, respondents enjoy having everything planned for them (50 per cent), while a third (33 per cent) highlight the appeal of lower risks of delays and cancellations on cruise holidays.
Meanwhile, the vast majority (83 per cent) of respondents with dependent children say cruises either appeal to them or they are motivated to take a cruise this year, compared to fewer (70 per cent) respondents without dependent children.
“For families, return airfares hit the hip pocket even harder on international trips due to the ‘per seat’ pricing model, whereas cruises offer a ‘per cabin’ pricing model,” Etkind says.
“Add that to the increasing number of cruise ships that offer top kids’ activities or kid zones, such as P&O Cruises, and you can see why family cruise holidays are likely to grow beyond 2024.”
