The cruise sector will be the fastest-growing area of the travel industry over the next five years and it represents a major opportunity for agents, delegates were told at Abta’s Travel Regulations conference.
Alexander Göransson, senior consultant at Euromonitor International, predicted that the pace of sales growth for cruise between 2024 and 2029 would outstrip air travel, package holidays, leisure accommodation, experiences and attractions, and car rental.
Projecting growth of 7% for the cruise sector, he described the area as an “emerging market”.
“The fastest-growing holiday element is going to be cruises,” he said, adding: “Cruise companies are now trying to appeal to a much younger demographic.”
He also said research suggested that the cruise sector and package holidays held the “greatest potential” for bricks-and-mortar agencies when considering their likely share of sales up to 2029 compared with other holiday elements.
Air travel, accommodation and ‘experiences and attractions’ were all projected to be much more reliant on direct sales as well as bookings through online travel agencies.
“Cruise is where people are very loyal to booking with intermediaries offline,” Göransson said.
Noting data that suggests consumer spending on travel has outperformed overall consumer spending, he predicted the trend would continue.
“The outlook, despite the uncertainties, remains strong for travel,” he said, welcoming recent falls in the interest rate and inflation.
“An industry that has been very resilient so far… that is going to continue,” he added.
In 2029, the most popular destinations for UK travellers would most likely be France and Spain, he said, but he noted Turkey and India were on track to record sharp growth.
“Turkey is going to be rising heavily and it’s becoming an increasingly important destination for relaxation,” he said.
Tourism to India is being driven by experiential travel and interest in relaxation and wellness, he said.
He added that he was surprised to find that “only about 15% of travellers to India highlight friends and family as the reason for going”.
Göransson described Euromonitor International as a “global business intelligence provider” based in London.
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