Fiona Spinks is a devoted cruise enthusiast. The travel expert and solo adventurer spends a lot of time in far-flung places, but also plenty of days on deck as she navigates the globe in comfort. 

“I’ve spent a lot of time on cruise ships over the years, and if there’s one thing I’ve really noticed lately, it’s that the atmosphere has shifted,” she said. “You can feel it the moment you step onboard.”

The energy on the average ship Spinks vacations with has mutated away from your typical vision of a cruise toward something… funkier. “There’s more energy, more people in their 20s and 30s, groups of friends, couples celebrating milestones, young families trying cruising for the first time,” she said. “It’s no longer just retirees and honeymooners.”

That anecdotal evidence is backed up by big data: the average age of a cruise ship passenger is now 46, the Cruise Lines International Association (CLIA) says, down from 49 less than 20 years ago. More than a third of passengers traipsing up the gangway to board are now under the age of 40.

Cruise vacations are taking market share from land-based alternatives, too, eating into holidaymakers’ plans to book hotels, based on Jefferies data. More than 35 million people worldwide are likely to take a cruise this year, up from about 22 million in 2015, just over 10 million in 2005, and fewer than 5 million in 1995, the investment bank says. 

Whether the cruise boom will survive the creep of an economic downturn, made worse by the White House’s pursuit of tariffs, is yet to be seen. With discretionary spending dropping, cruises could also become a casualty. Cruise stocks like Carnival, Royal Caribbean, and Norwegian have taken hits lately, though in recent months investment banks have said this form of vacation is better insulated from recessionary risks than others.

While Spinks sees this as a radical revolution in cruisers, others see it as more of a natural evolution. 

“I would say that actually, it could be argued that in fact, things haven’t changed,” said Denise Clark, an expert based in Honolulu with more than 35 years of cruise industry experience. Clark says the dropping of the average age is simply a consequence of demographics: older generations that have always been cruising are successfully convincing their kids to join them. It’s something Clark has dubbed a “generational halo effect.” CLIA data shows that one in three families sail with at least two generations.

Now drawing in a broader age range, cruise providers are changing to accommodate that wider market. “Of course, the onus then is on the cruise lines to deliver an experience that appeals to that younger demographic,” Clark said.

There was a time when a Broadway-style show in a grand theater, an à la carte dining experience in a grand restaurant, and an ample all-you-can-eat buffet would suffice for cruisers as they went from point A to point B. But that no longer cuts it, Spinks said. 

“It’s not just about lounging by the pool or hitting the buffet,” she explained. “There’s this appetite for experiences — upgraded dining, spa packages, curated excursions, even exclusive onboard events. People are really planning their trips with spending in mind, not saving.”

The demographics of new cruisers may play a role in this, travel expert Jiayi Wang said. “People under 40 aren’t passive travelers,” she said. “They’re treating cruises like floating resorts, with curated experiences at every turn. Whether it’s $250 on a mixology workshop, $80 for a wellness session, or $500 for a once-in-a-lifetime diving excursion, they’re not hesitating to layer on costs when it adds value to the story they want to tell.”

That’s good news for cruise companies: onboard revenues account for 25% to 30% of net revenue, according to UBS — but because they can book a higher margin on those revenues than ticket sales, it’s a more significant contributor to companies’ profitability.

Historically, cruise companies have operated on the basis that ticket prices broadly cover costs incurred, while onboard spend drives their profit. “Shore excursions — depending on the port in the itinerary — [are] definitely one of the top four revenue earners,” Clark added. In the past two decades, passenger growth in the North American cruise industry has seen “net yield,” an industry metric considered the closest tracker of overall passenger spending, rise an average of 1% to 2% per year. Banks and analysts predict the pace of net yield increase in 2025 will grow: Carnival and Royal Caribbean are expected to see a 4.5% year-on-year increase, UBS reported, while Norwegian anticipates a 2.2% rise. Together, the three companies account for about 90% of the North American cruise market.

To attract younger spenders, MSC, the world’s third-largest cruise company globally, launched its first ever Super Bowl ad this year, starring Orlando Bloom and Drew Barrymore. The video highlighted the range of activities available on cruises as much as it did the destinations they travel to.

Spinks singles out Royal Caribbean as one of the cruise lines that’s managed to improve its onboard experience more than competitors — and is benefiting from those changes. 

The company’s ships have entire sections that make them feel less like seafaring vessels and more like on-shore entertainment hubs, with neighborhoods you want to hang out in rather than a succession of discrete rooms. Royal Caribbean’s newest vessel, Star of the Seas, which takes to the water this summer, has a verdant Central Park on deck 8, lined with shops, cafes, and restaurants that trick passengers into thinking they’re spending time in nature while at sea.

The company’s entertainment offerings also go beyond the standard after-dinner shows many people might think of when they imagine a cruise, Spinks said. Star of the Seas, for one, has an aerial adventure course that extends out beyond the ship’s floor plan over the water, along with minigolf, multiple pools, and a variety of bars. 

“I’ve seen people line up early for onboard escape rooms, book cocktail-making classes before embarkation, or pay extra for front-row seats to shows they could just as easily skip — and they’re thrilled about it,” Spinks said. “That tells you everything.”

Those changes are being driven by the generational shift. “The younger generations are changing what cruising looks like,” agreed Jackie Steele, a hospitality expert and former Disney cast member who has worked on Disney Cruise Line excursions, where spend is even higher. “Millennials and Gen Z are more focused on experiences than past cruisers, and they’re treating ships like floating destinations, not just transportation,” he said. “I’ve noticed they’re leaning into shorter sailings, packing their time onboard with activities, and saying yes to every upgrade — dining packages, drink plans, excursions, even themed spa treatments.”

Disney’s cruise offerings are a major inspiration behind the drive toward premium experiences onboard rather than following the same old trends. The company is bringing its experience with amusement parks to ship design and capitalizing on its fanbase’s willingness to spend — as seen through the many people willing to pay for fast-tracked access to rides in Disney’s theme parks, despite an ever-rising list of closures. 

“Their ships are built with immersive experiences in mind: ‘Star Wars’ lounges, Marvel-themed dining, and Broadway-style shows that keep guests spending,” Steele said. “What I see often is that younger parents — especially millennials — are willing to pay for the full Disney ‘magic’ because it’s seen as more than a vacation. It’s a memory-making investment.”

On top of that, there are the standard Disney experiences that make the cost seem worthwhile. “Add in exclusive character meet and greets and rotational dining, and suddenly the onboard spend feels worth it,” Steele said. 

As Morgan Stanley put it, “We think its relatively higher passenger admission prices and onboard spend are driven by the Disney brands infused throughout the cruises.” Analysts have said it’s likely Disney even gets higher spending in its bars (which BNP Paribas estimated accounts for about $0.18 of every dollar of revenue across the industry) than competing cruise lines because of its immersive, themed nature. It’s a model for hospitality that others are keen to follow. “Disney’s ability to upsell, without it feeling pushy, is something other lines are studying closely,” Steele said.

“I’ve worked closely with tourism boards and brands, and one trend is clear: younger travelers are making fast, confident booking decisions but expect full flexibility and elevated experiences,” Wang said. “That kind of customer is gold for cruise lines, and they know it.” She cited Disney as a perfect example. “They’ve built an ecosystem where people don’t even question paying more. You’re not just booking a cabin — you’re buying into a feeling, a brand, a moment, which is very powerful.”

Disney’s weight in the cruise industry is far greater than its comparatively tiny 3% market share, according to Jefferies. And even that small market share is expected to grow in the coming years as more vessels commissioned by the House of Mouse enter use. Disney’s entry into the cruise market is also helping bring new passengers onboard who previously wouldn’t have considered cruising. In the 2010s, the proportion of North Americans who took a cruise rose from 3.1% to almost 3.9% — a more than 25% increase.

Those new passengers will need ships to go on, and Disney has plans to nearly double its fleet of six ships to 11 by 2030. Disney Treasure first set sail last December, with the Disney Destiny and the Disney Adventure expected to begin voyages in the latter half of 2025. The Treasure has seen unprecedented levels of demand, despite astronomically high prices. Importantly, the 2,100-passenger Adventure will be Disney’s first ship based in Asia, operating out of Singapore and tapping into a new market that already does well on the company’s theme park side.

The average spend on a Disney cruise is likely far greater than the industry average, which is about $1,457 for a ticket and a further $697 of onboard spend, BNP Paribas calculated, but it will also nudge competitors’ offers — and prices — higher, analysts reckon. That’s before getting to off-ship spending on private islands controlled by cruise companies, where Disney also competes.

“What’s interesting is how Disney is almost acting as a premium benchmark within the cruise space,” Steele said. “Their per-passenger spend onboard is higher, yes, but so is the perceived value. That’s appealing to Gen Z and millennial cruisers who aren’t just looking for a good deal — they want to feel like they’re getting a curated, high-quality adventure from start to finish. And Disney delivers that.”

While Disney’s influence on the cruise market matters enormously, it’s also hiking the cost of cruising. That could cause some passengers discomfort, though past precedent suggests people are willing to keep on paying if the product is good enough. 

“On the higher-end lines like Disney, it’s not just about what’s on the ship; it’s about the emotional payoff,” Spinks said. “The character experiences, themed events, even the merchandise — it’s all designed to pull people into a world they already love, and they’re more than willing to pay extra to keep that feeling going.”

Spinks has seen families plan their expeditions around those moments more than the destinations themselves.

“What it means for the future is that cruises are becoming more than vacations: they’re immersive experiences people want to repeat, not just because they’re relaxing or convenient, but because they’re entertaining, social, and easy to tailor to whatever you’re in the mood for,” Spinks said. “That’s a major shift. And from what I’ve seen, it’s only going to keep growing.”

Chris Stokel-Walker is a UK-based journalist. His latest book is “How AI Ate the World.”