After record 2024 sales and a strong 2025 launch, the cruise industry—as with other businesses—this month experienced stock market gyrations and trade tariff concerns. But optimism still is front and center, a view expressed by Bud Darr president and CEO, Cruise Lines International Association, in his “State of the Cruise Industry” keynote address at Seatrade Cruise Global in Miami Beach on Tuesday. Talking to 3,000 conference attendees, top leaders from Carnival Corporation, Royal Caribbean Group, MSC Group and Norwegian Cruise Line Holdings also provided their perspective on industry conditions.
Navigating the Tariffs
While the executives were optimistic throughout the discussion, it’s still a hazy picture on any impact of this spring’s geopolitical drama. That said, moderator Anne Kalosh, executive editor of Seatrade Cruise News, asked the executives to discuss the tariff situation, and here are highlights:
Describing Carnival Corporation’s strong first quarter 2025 financial performance as “amazing,” Josh Weinstein, president, CEO and Chief Climate Officer, Carnival Corporation, pointed to the company’s 7 percent growth rate year-over-year, and said guests are spending 10 percent more than the previous comparable time frame.
But he also added that companies—similarly to consumers—are dealing with the recent geopolitical drama and tariff concerns. “The uncertainty and the ripple effects absolutely have an impact on the industry,” said Weinstein. “Companies are trying to figure out 'What does it mean for me?' And the hard part about that is, as of now, the answer is 'We don’t know.'” He said it will likely just take some time for people to get comfortable with the uncertainty.
While Harry Sommer, president and CEO, Norwegian Cruise Line Holdings, acknowledged that 2025’s Wave Season did start “a bit choppy,” he also stressed this: “Two shaky days in the stock market do not have us changing our long-term financial strategies and models.”
Sommer also pointed to happy guests cruising in record numbers and strong repeat rates providing a “tremendous recipe for financial recovery" following the pandemic era. And he talked about NCLH’s business dealings being both local and global. “We have lots of friends in lots of different places,” he said, adding that NCLH also sources products in the U.S. and is a good corporate citizen.
Distinguishing the cruise industry’s business model from other types of industries, Jason Liberty, president and CEO, Royal Caribbean Group, mentioned the mobility factor. Simply put, “our ships move,” he said. Also, “once our ships land, they can make an economic impact,” suggesting to governments that when considering policy changes, they need to understand what economic benefits cruise tourism can bring to a destination or country. He added that his company "listens well," too. Overall, he stressed that the “power of our platform” is that “it’s flexible.”
MSC Group’s Executive Chairman Pierfrancesco Vago drew attention to the cruise industry’s global growth, and how that’s a plus. The Switzerland-headquartered company is expanding fast within the U.S., for example, opening the world's largest cruise terminal at PortMiami this week and christening MSC World America there. But he said it's also looking to new markets outside the U.S. The company has recently announced a partnership in India, for example.
Several of the executives mentioned the “value” provided to consumers during any cruise vacation. So, even during an era of economic uncertainty when people are watching their wallets, cruising can be a great value. For instance, Vago told the audience of 3,000 that one dinner in Miami alone would cost the same as a full day on Explora Journeys, his company's all-inclusive luxury cruise brand.
As for CLIA’s dealings with the new administration, whether about tariffs or other topics, Darr said it’s about finding the right policymakers who will listen—“finding those voice that actually are open-minded and making sure they understand what we’re about.”
While one-third of global democratic nations held 2024 elections, none are acting quite the same as the Trump team in Darr’s view: “What’s unique about this transition is they came in better prepared to actually implement and execute their prerogatives—much more than we typically see.”
Other Topics at Seatrade
Tackling the topic of significant cruise growth, the discussion focused on such factors as the introduction of more mega-ships. “It’s not an arms race,” Weinstein emphasized. “We’re not building for the sake of being bigger,” but instead building with a long-term focus. And Royal Caribbean Group’s Liberty added that half its ships are less than 100,000 gross tons. So, it’s a misperception that all ships are humongous. Beyond larger and mid-sized ships, there’s also been significant growth in 2024 and beyond for small-ship, yachting and expedition cruises.
As for private destinations, the executives were asked if the growth—as some people have suggested—is simply to keep more revenue in the cruise line’s own hands when guests arrive for a full day port call. Vago stressed that his company transformed a former industrial island into a lovely, eco-friendly beach destination, Ocean Cay MSC Marine Reserve. Now, a smaller nearby isle will become a similar paradise for its luxury Explora Journeys brand.
“At the end of the day, we are trying to elevate the guest experience,” said Liberty. While he acknowledged that creating the Perfect Day resorts in Mexico and the Bahamas does bring his firm economic benefit, he also stressed that they also create local jobs and benefit local economies. For instance, Liberty said that the company buys a lot of things locally.
Re-Education About Cruising
When discussing the $42 per cruise passenger tax proposal in Mexico, Weinstein said there’s nothing official to report but “we’ve been working hard to find a collaborative approach.” Weinstein, too, pointed to the need for more upfront collaboration upfront: “We wouldn’t be here [discussing a guest head tax] if the process had been done differently.” In his keynote address, Darr stressed that repetition of key messaging about the industry is important, as governments and officials often change.
Overall, much of the discussion for the “State of the Industry” was positive. Sommer, for example, said Norwegian Cruise Line, Oceania Cruises, and Regent Seas Cruises recently achieved their highest growth yields ever, along with soaring guest satisfaction scores. Stay tuned here next week for more updates from Seatrade Cruise Global.