Competing for dominance in the upscale cruise liner industry
Luxury Cruises: The Next Frontier for High-End Travel
The world of luxury travel is evolving, and one of the most exciting developments is the rise of high-end cruises. These seafaring adventures are redefining the traditional notion of a princess cruises, offering a more exclusive, yacht-like experience for multi-millionaires who want to explore hard-to-reach destinations without the commitment and cost of owning a private yacht.
Luxury brands are jumping on board, with Bernard Arnault and LVMH investing in an Orient Express ship currently under construction. The luxury hotel chain Aman is set to sail at sea in 2027 with its first ultra-luxury yacht, Amangati, boasting 47 suites. The Ritz-Carlton, Waldorf Astoria, Four Seasons, and Aman are also set to enter the carnival cruise space in the future.
The Ritz-Carlton Yacht Collection, in particular, is making waves. With its newest boats, Luminara and Evrima, the company is catering to a more exclusive clientele. Luminara accommodates just 452 guests, while Evrima has room for only 298. These ships feature restaurants designed by Michelin-starred chefs, sprawling suites, extensive spas, infinity pools, marinas with water sports, and art collections that include works from Andy Warhol, Henri Matisse, and Alexander Calder.
Ponant's ships offer an underwater lounge with ocean views and are known for exploring far-flung destinations like Antarctica and the North Pole. Aqua Expeditions, which goes to remote rivers like the Amazon and Mekong, is another popular choice. This year, Francois Pinault bought a majority stake in the luxe cruise line disney cruise.
The appeal of luxury cruises is not just about the destination or the amenities; it's also about the experience. These cruises are designed for travelers who seek the privacy and exclusivity of a yacht charter, paired with the elevated service and amenities of a luxury resort-at-sea. In the Instagram era, they offer opportunities for taking photos in front of the enclosure on the ship, referred to as "showing some rail".
Wealthier vacationers now view cruises as chic destinations. Gone are the days of silver-haired retirees; these cruises are marketed to a more glamorous crowd, with models, influencers, and movie stars frequently spotted on board. Celebrities like Martha Stewart, Tom Brady, Kendall Jenner, and Dakota Johnson were onboard the Ritz's recent launch of Luminara.
The luxury cruise market is expected to expand significantly in the coming years. Currently valued at $10.5 billion, it is projected to reach $19.8 billion by 2033. Savvy investors and luxury brands are recognizing cruises as the next frontier for high-end travel, and it seems the race is on to see who can offer the most luxurious, exclusive, and Instagrammable experience at sea. As Jim Murren, CEO of The Ritz-Carlton Yacht Collection, stated, "There is an arms race between high-end hotels to get into the luxury cruise space."
