Passengers flock to cruise ships as pandemic fears abate

Americans are booking trips on cruise ships at rates not seen since before the pandemic, a sign travelers are more comfortable boarding vessels that were once vectors for coronavirus.

Florida-based Royal Caribbean said earlier this month that the load factor, or percentage of seats filled, of its cruise ships grew to an average 102% in the first quarter of 2023. By comparison, the occupancy rate was 57% a year ago and 107% in 2019 just before pandemic lockdowns. Norwegian Cruise Line reported an average 101% occupancy rate during the first quarter compared to 48% last year and 105% in 2019. The uptick in passengers is spurring the financial recovery of the cruise industry which lost billions of dollars during the COVID years. 

"COVID has dissipated as a concern for a lot of travelers" Wall Street Journal reporter Jacob Passy told CBS News. "People are raring to get out there, and cruises are a great way to see multiple locations (and) multiple countries."

Cruiselines are reporting more than 100% capacity because passengers are piling more than the suggested two people per cabin, Passy said. Cruise tickets this year are between $130 and $260 a day depending on the ship, cabin type and destination, according to online price tracker Cruzely.  

Sight for sore eyes

Overbooked cabins serve as visual proof of the industry's rebound which the Cruise Lines International Association (CLIA) last year predicted would happen. Cabin occupancy rates will stay in the triple digits between now and into 2026, fueled mostly by millennial travelers, the trade group estimated. 

The seafaring crowds are indeed a welcome sight for cruise companies, many of whom were forced to furlough workers and slash scheduled trips in recent years. 

In 2021, the U.S. Centers for Disease Control and Prevention advised travelers to stay away from cruise ships because of how frequently passengers were contracting coronavirus while on board. The warning led to fewer reservations and less income for companies like Royal Caribbean and Norwegian. Cruise companies globally saw their income sink from $24 billion in 2019 to $8 billion in 2021, according to the most recent CLIA data. 

The CDC removed its warning against cruise ships last year and is no longer requiring companies to offer vaccinated passenger-only trips. 

One of the biggest problems cruiselines faced during the pandemic was passengers booking trips then backing out weeks before the departure due to health safety concerns, Passy said. Cruiselines are overbooking travelers these days because they're still expecting some passengers to change their minds last minute, he said. 

"The issue right now is fewer people are canceling because of COVID, so they're having to readjust that algorithm a bit to account for the fact that more people are just going no matter what," Passy said.