CRUISES

Cruise Travel Positioned to Become Loyalty’s Next Growth Driver

New arrivia report shows cruise demand increasing among younger generations and a growing interest in shorter sailings, private island destinations and flexible payment options.

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New arrivia report shows cruise demand increasing among younger generations and a growing interest in shorter sailings, private island destinations and flexible payment options.

Cruise is evolving from a niche travel product into one of the fastest-growing segments in leisure travel—and a powerful lever for loyalty engagement, according to a new report from leading loyalty technology provider arrivia.

Based on a survey of more than 4,500 U.S. adults, including over 1,000 “active cruisers” who had either sailed in the past 24 months or booked an upcoming trip in the next two years, View from the Cabin: The Trends Shaping the Modern Cruise Experience details the consumer expectations and preferences defining today’s cruise market and what they mean for loyalty programs.

“Cruise is no longer just an add-on in the loyalty mix,” says Jeff Zotara, Chief Marketing Officer at arrivia. “It delivers high-value, repeatable experiences that travelers are actively seeking. When integrated effectively, cruise can become a cornerstone of growth and a true loyalty differentiator.”

Younger generations at the forefront
Cruise demand is diversifying across age groups. While traditionally a big draw for older travelers, cruise is increasingly finding its footing amongst younger generations. Nearly half of the survey respondents said they had cruised before and almost 30% plan to do so in the next two years. Millennials lead the surge in future intent at 36%, alongside higher-income households.

Of the roughly half of respondents who had ever taken a cruise, 37% have a cruise booked in the next two years and more than a quarter had cruised in the past 12 months alone, with Millennials and Gen Z showing up at higher rates than either Gen X or Boomers, who remain, however, the most frequent cruisers.  

This cross-generational mix underscores cruise’s potential as a mainstream vacation option, rather than an occasional splurge. But expectations differ by age—and travel brands must cater to these differences to unlock new bookings and engagement across demographics.

Value and flexibility tip the scale
When travelers compare cruise against land-based vacations, value is often the deciding factor. A quarter of respondents said they would book cruise more frequently if the initial booking price beat that of a land-based trip, while about 40% said they would swap a planned land-based trip for a cruise if it offered equal or greater value.

For Boomers, that means upgraded cabins and premium onboard amenities. For younger generations, it means maximizing flexibility and stretching budgets with options such as deferred or alternative payments and additional onboard reward redemptions. Convenience and variety may inspire initial interest, but delivering more for the money is what ultimately converts intent into bookings.

Shorter sailings, private islands and river cruises gain steam
Evolving preferences are also reshaping the way consumers think about cruise. Shorter sailings have gained traction, with 18% of U.S. travelers preferring two-to-four-day itineraries instead of the more traditional five-to-seven-day escape. Millennials and Gen Z are the most enthusiastic audience of these getaways, seeing them as an affordable way to experience a cruise while also leaving time—and budget— to go on another vacation at another time. The availability of these itineraries has important loyalty implications as well: 15% of “active cruisers” with a preferred line said they would switch brands if they offered shorter sailings.

Private islands are another powerful differentiator. A majority of travelers (55%) said a private island stop factors into their decision to book, while one in four would change cruise lines to gain access. River cruising, meanwhile, highlights untapped potential. While 63% of travelers expressed interest, only 10% of those who have never been on a river cruise have one booked in the next two years—a gap that loyalty programs can close through the right buyer education and targeted marketing.

Multi-generational and group travel expands
Though couples and families with young children make-up the majority of cruise bookings, the survey reveals that 25% of Boomers are cruising with adult children and nearly one-fifth of Gen Z are traveling with parents. Gen Z also stands out as the cohort most likely to cruise with groups of friends. These dynamics add complexity to trip planning and payment, underscoring the need for loyalty platforms that can handle multi-cabin reservations, group redemptions and shared payments seamlessly.

Loyalty at the center of cruise growth
The findings in View from the Cabin echo what arrivia’s earlier “Loyalty and the Changing Traveler” report revealed: consumers want loyalty rewards that reflect how they really travel. Cruise checks every box. It delivers variety and unique experiences that resonate across demographics. With more than one in five active cruisers booking their most recent trip through a loyalty program, and over half engaged with loyalty platforms at some point in their cruise journey, the loyalty integration opportunity is clear.

“Loyalty providers are under pressure to deliver products that drive both engagement and revenue,” Zotara added. “By integrating cruise into their rewards portfolio, brands can create experiences that keep members coming back.”

For more information about the report or to speak with Jeff Zotara, Chief Marketing Officer at arrivia, please contact Vanessa Horwell at [email protected] or download the View from the Cabin here. 

About arrivia 

Arrivia is a travel technology company that provides travel loyalty, booking and marketing solutions to consumer-facing companies that want to deliver exceptional value to their customers, uncover new revenue streams and drive growth through exciting travel rewards and member benefits. The company’s Travel Privileges program opens up the world of travel for companies like American Express, T-Mobile, Alaska Air, USAA and Marriott Vacation Club by offering their customers more value through exclusive pricing and encouraging discovery with relevant and personalized options that inspire travel and consumer loyalty.

SOURCE Arrivia

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