A new study from Simon-Kucher suggests that while it might not be a top concern for consumers, boosting sustainability in the cruise industry could draw new customers. With only a quarter of UK residents having high interest in cruising, a number of quick environmental wins could help shrink the large price-tags associated with the sector.
During the early stages of the pandemic, international lockdowns saw many airlines slip into crisis mode. With demand suddenly drying up entirely, many companies were forced to beg for state bailouts, or face collapse. In the years since, huge inflationary pressures have slowed the recovery from this – but demand for leisure travel has still been growing, thanks to the pent-up demand of the lockdown months.
And while international leisure travel from the UK finally hit pre-pandemic levels over 2024, some sectors are still witnessing stagnant demand. One of the forms of leisure travel to have long lost its lustre is the cruise industry – with Simon-Kucher polling more than 400 UK consumers, to find just 25% of them being ‘highly interested’ in cruising.
Source: Simon-Kucher Sustainable Cruise Travel Survey
A higher 27% said they had ‘low interest’ in taking a trip via a cruise ship, while 48% only considered it something of ‘moderate interest’. When asked what was holding them back, consumers cited price and experience as their chief concerns. The largest 49% portion said that they had a preference for an individual vacation – where they could stick to a single destination, and plan according to their own schedule. Meanwhile a similar 48% said they perceived cruises as lacking value, or being over-priced – an important factor following a cost-of-living crisis which has cost the average UK household more than £2,300 in annual income.
Some way back – behind health and safety concerns, and the potentially tedious activities taking place onboard cruise ships – 29% of consumers said environmental concerns were stopping them being interested in cruising. But while that might seem like a minority pursuit, Simon-Kucher also found that it was a higher priority for the demographics the industry traditionally depends upon.
Sustainable pricing
While a quarter or less of those under the age of 44 said environmental concerns were the main reason to reject cruising (possibly behind the price – with younger consumers typically having less disposable income, or onboard boredom, as they are more likely to have the energy to seek out experiences for themselves) – that rose significantly with older consumers. For example, 37% of those aged between 55 and 65 said environmental concerns were top of their agenda.
Source: Simon-Kucher Sustainable Cruise Travel Survey
However, this demographic are also less likely to pay a premium for sustainability. Just 11% of consumers over 45 said they would compensate CO2 emissions out of their own pocket. Simon-Kuchers’ study instead highlights how sustainability could therefore present an opportunity to reduce prices, and appeal to an even larger portion of unconvinced travellers.
Polling the same group, Simon-Kucher asked which ways customers would be willing to reduce their experience, in order to both improve a cruise’s environmental impact, and its pricing. An 81% majority said they would be willing to do without printed materials such as itineraries and daily schedules in their cabins, while 75% said reducing single-use toiletries would also help. A 69% portion also said they could do without daily cabin housekeeping, and 67% without daily towel and linen changes – each identified as a ‘quick sustainability win’ which could both rapidly improve a cruise’s green credentials, and find savings in costs.
Co-authors Alexander Dyskin, Lisa Neumeier and Dimitris Hiotis summarised, “Environmental concerns are deterring UK travellers from booking cruises, posing both a challenge and an opportunity for the industry. By advancing in these areas, cruise lines can enhance their reputation as a sustainable choice and justify premium pricing.”