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Beyond Borders: The Next Wave: How Australia’s cruise industry is set to grow by 2030

According to CLIA, more than 1.2 million Australians embarked on ocean cruises in 2024, well surpassing 2019 numbers. The cruise boom was a central topic at the inaugural Australian Travel Industry Association (ATIA) Beyond Borders Summit in Sydney, where a panel of cruise leaders highlighted opportunities for further growth.

According to CLIA, more than 1.2 million Australians embarked on ocean cruises in 2024, well surpassing 2019 numbers. The cruise boom was a central topic at the inaugural Australian Travel Industry Association (ATIA) Beyond Borders Summit in Sydney, where a panel of cruise leaders highlighted opportunities for further growth.

Moderated by Cruise Critic’s Vanessa Green, cruise aficionados Ben Angell, Vice President and MD of Norwegian Cruise Line (NCL), Gai Tyrell, Managing Director Asia Pacific at Globus Family of Brands (GFOB) and Gavin Smith, MD of Royal Caribbean International Australia, explored how Australia can grow its international cruise market towards 2030.

Ben Angell opened the conversation by acknowledging the success of the domestic cruise market while also pointing to the untapped potential of international cruising. “The strength and growth of the domestic cruise industry has been so phenomenal here that we’ve perhaps overlooked the broader opportunity for fly-cruise,” he said.

With over seven million Australians heading overseas in 2023, Angell sees a significant opportunity to convert more of these holidaymakers into international cruise travellers. “I’m obviously a convert, but I think you’d be hard-pressed to find a holiday option that offers greater value, convenience, and the chance to see more in a short amount of time than a cruise,” Angell remarked, highlighting the need for the industry to communicate better the benefits of cruising to non-cruisers.

The appeal of World-Class products

Gavin Smith, Managing Director of Royal Caribbean International Australia, agreed with Angell, emphasising that Australians have access to world-class cruise products right on their doorstep. With ships departing from Brisbane, Sydney, and Melbourne, travellers can experience premium cruise offerings locally, also building their confidence in choosing international cruises.

“Because of this, the risk of buying the right cruise product in Europe or Alaska and the Caribbean is vastly diminished because you can see the product from the ferry or driving over the expressway. Everybody knows what they’re buying, and we’re seeing Aussies transition to buying those cruises further afield.”

“The Aussie guest that cruises outside of Australia is the highest yielding guest anywhere in the Royal Caribbean brand,” Smith revealed. Australian cruisers are not only enthusiastic travellers but also big spenders—investing in premium accommodation and enjoying onboard amenities like wine, the casino, and shore excursions. This makes Australian cruise passengers particularly attractive to international cruise lines.”

New ships driving demand

When it comes to attracting Australian travellers to international destinations, the hardware—or new ships—is a key driver of interest. Smith spoke about the excitement surrounding Royal Caribbean’s Oasis-class and Norwegian’s Prima-class ships, which have generated significant buzz among Australian cruise enthusiasts. “It’s validating the purchase,” said Smith. “We know they’re going to love it, and they’ll come back and book again.”

The investment in state-of-the-art ships, like Royal Caribbean’s new Icon of the Seas, which was a $2 billion investment and carries nearly 400,000 passengers annually, has been pivotal. “The NPS (Net Promoter Score) coming off that ship is the highest in the fleet,” Smith added, noting how these innovative ships attract younger, high-spending passengers who want to cruise more often.

River Cruising, evolving experiences and stays

Beyond Borders Summit - Next Wave - Karryon
Image: Event Photos

As the conversation shifted to river cruising, Gai Tyrell, Managing Director Asia Pacific at Globus Family of Brands, which includes Avalon Waterways, explained how the river cruise sector is evolving to appeal to a broader and younger audience. “It’s changed; it has really evolved and is appealing to a much wider audience,” said Tyrell. River cruises now offer a range of diverse experiences, on and off the boat, making them more attractive to adventure-seekers and luxury travellers alike.

“Australians typically go to Europe for a long time,” Tyrell continued, pointing out that a river cruise can be the perfect way to either start or end a European vacation. Whether it’s a four-night trip or a 28-day journey, river cruising offers flexibility, allowing travellers to unwind while only unpacking once—a key selling point for busy holidaymakers.

“It’s an easy sell and can be a small part of a trip or the entire trip,” said Tyrell.

The Power of Partnerships

As the cruise industry continues to expand internationally, partnerships are becoming more critical than ever. Smith discussed the long booking windows for cruises, which can be planned two years in advance, allowing for collaboration between travel agents, tour operators, and cruise lines. These extended booking periods also enable the development of mutually beneficial partnerships with brands, events, and even other travel sectors.

Smith highlighted Royal Caribbean’s partnership with The Wiggles as an example of how brands can work together to create engaging family cruise experiences. “We try to put some wiggly opportunities in front of people 12 or 18 months in advance,” he said with a smile, noting how these partnerships can draw families to book well ahead of time.

Tyrell echoed the importance of partnerships in river cruising, noting the value of trade partners to GFOB. “Trade has always been our organisation’s number one focus, and that won’t change. It’s trade first, everywhere in the world, and we pride ourselves on the content and marketing that’s produced and the co-op that we do.”

Tyrell also discussed Avalon’s success in bundling river cruises with land tours and other travel experiences, including NCL cruises. “Bundle, bundle, bundle—that’s the key,” she said, underscoring the value of offering integrated travel experiences to attract new customers.

Attracting new talent and uplifting existing

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The panel also touched on the challenge of attracting new talent to the travel industry, particularly in the cruise sector. “It’s the thing that keeps me awake at night,” said Angell. While the industry was once seen as highly desirable, there is now a perception that it’s a tough and less fun environment to work in post-pandemic. To combat this, Angell emphasised the importance of mentorship in creating opportunities for younger professionals to rise through the ranks.

Angell asked, “What can we do? Well, I think there are a couple of things. Some of us, as we age, need to get off the stage and make room for some of the younger up-and-comers to shine a light on them.”

“And secondly, we’re focusing a lot on working closely with TIME mentoring. We’ve got programs within NCL and through TIME to mentor and provide opportunities. It’s the thing that we’ve all got to come around and work together on because if we don’t, we’re going to be challenged. There’s no doubt.”

Smith added that Royal Caribbean is focusing on building a workplace where young people want to come in and engage. “Let’s get everybody back in the office and learning around the water cooler,” he said, stressing the value of in-person collaboration for developing the next generation of industry leaders.

“I don’t know what our kids are going to learn sitting at home on Zoom, and I worry about that. I think we all talk about that a lot, so we’re really focused on creating an environment where people want to come in and congregate and share their time.”

As the panel discussion concluded, one thing was clear: the future of Australia’s cruise industry lies in collaboration, innovation, and a renewed focus on international growth. With world-class ships, diverse travel experiences, and a growing appetite for cruising among Australian travellers, the industry is poised to expand well beyond its pre-COVID success.

Thanking the audience, Angell said, “I’ve been in the industry now for almost 20 years, and I’ve never felt cruise to be as big a part of the travel ecosystem as it does today.”

“We feel welcome, we feel supported, and we don’t feel like we’re a little bit out on the edge like perhaps we have done in the past. I’ve never heard so much conversation about cruise and components as I’m hearing today.”

The inaugural Beyond Borders Summit preceded a huge weekend for ATIA and the travel industry, with the National Travel Industry Awards (NTIA) gala taking place on Saturday evening. The official NTIA Finalists Party kicked off proceedings on Friday night, followed by Karryon’s own Glam Club event just prior to the awards night on Saturday afternoon at The W Hotel in Sydney.

Read on for all the NTIA 2024 winners here.

For all the NTIA paparazzi photos and more, head to Karryon’s Facebook page here.