Andrea Zelinski
Even with the threat of an intense hurricane season ahead, the volatility of the election and new price disclosure challenges, cruise bookings are exceeding expectations.
That's the takeaway from a recent survey of travel advisors and cruise lines by Cleveland Research, a market research firm that keeps a close eye on the cruise industry.
The firm took the industry's pulse via the survey this month and touched base with advisors and cruise executives on the preview sailing of Royal Caribbean International's Utopia of the Seas last week. What the firm found was feedback that pricing growth is ahead of expectations and gross bookings growth is up slightly.
There was some concern that news about an intense hurricane season could impact cruise sales. The National Oceanic and Atmospheric Administration (NOAA) predicts an 85% chance the 2024 season will have above-normal hurricane activity this year due to warmer-than-average ocean temperatures and La Nina climate phenomenon.
NOAA forecasted 17 to 25 named storms this year, with eight to 13 forecasted to become hurricanes. As many of seven of those could become major hurricanes measuring up to a Category 3 to Category 5 with winds of at least 111 miles per hour.
The Caribbean already experienced one major storm with Hurricane Beryl, which became the earliest Category 5 Atlantic hurricane in about a century as it rolled through the Caribbean before gaining steam in Texas.
In addition to concern about the hurricane season, some cruise lines are also adjusting to a new pricing structure. California implemented a new "Honest Pricing Law" requiring business show all the costs upfront to eliminate "junk fees" or hidden charges which have attracted the ire of state and federal lawmakers.
With the new law, most cruise lines decided to disclose all their taxes, port fees and other mandatory charges for all their sailings, whether or not they are booked in California.
During the Utopia sailing, Royal Caribbean International CEO Michael Bayley said the company has seen "no impact" from changing how pricing is displayed. "I think if everybody is doing it, it's better for the consumer."
Despite these challenges, price growth continues to drive strength in cruise bookings, with booking volume up slightly year over year, according to Cleveland Research.
Just under half of respondents said bookings in the last 45 days have exceeded expectations, while the rest said bookings were in line with expectations.
While gross bookings growth is stable, price growth continues to lead the way.