Americans are spending more on travel than any other leisure category, and going on vacation is more of a need than a luxury.
Royal Caribbean Group President and CEO Jason Liberty told investors during a recent earnings call that his company's research is seeing consumers increasing their travel spend over the next year, even though some Americans are worried about the economy.
"Our research suggests that consumers are spending more on travel than any other leisure category and that they intend to increase their travel spend in the next 12 months."
A study by Forbes indicates that 46% of Americans are somewhat or very likely to adjust their travel plans in one way or another due to inflation.
It's no secret that a Royal Caribbean cruise costs more today than it did a few years ago, and that trend will continue into 2025 and 2026.
Mr. Liberty said Royal Caribbean Group's revenue for the second half of 2024 is 25% higher than it was in 2019, and they're getting more bookings for 2025 than for 2024, and that means the higher pricing trend will continue into 2025 and beyond.
We asked our readers one way they will cut the cost of your cruise vacation this year in order to cope with higher vacation costs. Two trends seemed to emerge from our polling.
Less onboard spending
The most commonly cited strategy by cruisers how they'll save money is by spending less on the options presented onboard.
Royal Caribbean's cruise fare does not include alcoholic beverages, WiFi access, shore excursions, specialty dining, and other add-ons.
Many people said they would skip out on booking specialty restaurants, internet access, or drink packages.
Sharon Johnson posted, "Going back to my beginning days of cruising in the 80's and 90's. Inside cabin, no drink package, no WiFi." She added, "this will be different, but affordable."
Stacey Boden wrote, "Cutting back on specialty dining, rethinking drink packages, redeeming RC Credit Card points for onboard credit for gratuities, minimal shore excursions if any."
These add-ons are not cheap, as drink packages regularly cost more than $100 per person, per day if purchased onboard.
Specialty dining costs add up too, even with a dining package. More than two specialty restaurants will easily exceed $100 a person.
Jim Couch said he wouldn't cut back, but look for better sales, "Not exactly cutting costs but we did pay attention to when Royal Caribbean would have sales and re-purchase at the lower price. Ended up saving about $300 that way from our first booking."
Downsizing to smaller cabins and older cruise ships
Another strategy a lot of people mentioned was booking smaller, less expensive cabins.
Generally speaking, an inside cabin will be cheaper than a higher category cabin, such as a balcony.
Read more: Inside vs Balcony cabins on a cruise ship
Kim Dudzinski wrote, "I’ve started booking interiors, prices have increased so much lately! Now paying for an interior what we used to spend on a balcony. It’s fine though as we rarely use the balcony."
Nicole Amadio added, "Inside cabins, we need two rooms so this saves big time. We are also busy bodies and can’t sit in one spot for too long so I don’t think we would get the use out of a balcony."
Tracie Jolliffe thinks the decision to downgrade her cabin makes a lot of sense beyond the cost, "I actually prefer ocean view over balcony because the one time I tried a balcony I really didn’t use it. I also like the view through the window better than the view through the balcony. Unpopular opinion, but it works for me!"
The other strategy is to skip out on Royal Caribbean's newest cruise ships because of the premium pricing they command.
New ships include the latest and greatest features the cruise line has conjured up, but the cost is going to be likely higher than a ship that's been in the fleet more than 10 years.
Andy Unwin posted, "Not doing new ships. Older ships are more economical."
Steve Cohen commented, "Cruising from local port instead of flying. Cruising on an older ship instead of new one."
Robin Brook will combine all the strategies mentioned in this article, "Definitely an older smaller ship, which I prefer anyway. While I enjoy indulging, I don't have to drink to have fun. So dumping the drink package. Eating in the main dining room and buffet rather than in a specialty restaurant."
Some of the best values in cruising are on Royal Caribbean's Voyager, Radiance, and Vision Class cruise ships. That's because they regularly offer the lowest prices.
Read more: Royal Caribbean ships by size
Cruise during off-peak times
The other strategy to save money some people in our poll mentioned was to opt to cruise when there's less demand.
While Royal Caribbean sails year-round, there's an ebb and a flow to demand and there are certain times of the year where you'll usually find better prices because demand drops.
Midge O'Neil-Borsilli wrote, "I am looking at off season weeks and when kids are in school ( no holidays and summer)."
Chaz Iannaci added, "We live in Florida and sail out of Florida mostly. Drive to port. Book aboard ship. Book off season."
Annamarie Meyers posted, "Going off season and not doing specialty dining or cabana on CocoCay."
This strategy works well for anyone who isn't beholden to the school calendar, as the times of year when kids are on vacation is when a lot more families look to sail.
