Deep Sea Passenger Transportation NAICS 483112
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Industry Summary
The 80 deep sea passenger transportation service providers consist primarily of cruise lines that move passengers to and from foreign ports in a leisure setting. The major cruise operators offer a broad range of travel experiences through various brands that can be classified broadly as mass market/contemporary, premium, and luxury. Companies own and manage fleets of cruise ships that can carry anywhere from a few hundred to more than 7,000 passengers.
Dependence on Economic Conditions
Demand for cruises is affected by international, national, and local economic conditions.
High Capital Intensity
The capital-intensive nature of the cruise business makes the industry heavily dependent on debt.
Recent Developments
Mar 17, 2025 - Cruise Industry Expects Third Straight Record Year
- The cruise industry is expected to rebound in 2025 with 19 million Americans expected to hit the high seas, according to AAA. It would be a 4.5% increase in cruise passengers over last year and the third straight year of record-breaking numbers. It continues a rebound for one of the hardest-hit industries of the pandemic. (By 2023, cruise travel has hit 20% above pre-pandemic levels.) Emerging cruise industry trends include booking trips on older, more established ships since those vessels are usually cheaper than new ones and sail for shorter durations. As for destinations, AAA reports that 72% of passengers are visiting the Caribbean. In fact, shorter Caribbean cruises of two to five days are 18% of total itineraries, compared to 2% in 2023, reflecting both trends.
- Baby Boomers once formed the core customer base for the cruise industry but an increasing number of younger travelers are now embarking, according to J.P. Morgan. The spending capacity of the Millennial customer has increased about 49% since 2019, according to J.P. Morgan. The average net worth today for an individual aged 40 or under is now about $25,000. Carnival Cruise Line noted there was a healthy mix of “new-to-cruise” in its 2025 bookings to date, with the customer group increasing by over 30% versus a year ago.
- New ship deliveries are increasing and 2025 will be a strong year, according to Cruise Industry News’ Global Cruise Ship Orderbook Report. A total of 19 ocean-going vessels and two coastal ships are set to be delivered in 2025. The new builds have a combined value of $14 billion and are set to add over 47,000 extra berths to the global market. The ships are 106,450 tons on average, with an average capacity of 2,456 guests.
- Deep sea passenger transportation industry employment remained near 10-year-high levels in September 2024, according to the US Bureau of Labor Statistics. Deep sea passenger transportation industry revenue increased 8.4% year over year but decreased 2.0% quarter over quarter during the first quarter of 2024, according to the US Census Bureau.
Industry Revenue
Deep Sea Passenger Transportation
Industry Structure
Industry size & Structure
Prepandemic, the average cruise line operated out of a single location, employed about 270 US workers, and generated just over $460 million annually. In 2020, the CDC shut down the US cruise industry in March of that year; the average cruise line operated out of a single location, employed about 200 US workers, and generated almost $120 million. In 2022, the average cruise line employed 134 people and generated $275 billion.
- Prepandemic, the US cruise industry consisted of about 55 firms that employed over 15,000 US workers and generated about $26 billion annually. In 2021, industry revenue dropped to about $5.5 billion and employment fell to 10,700 US workers. In 2022, industry revenue increased to $22 billion.
- The industry is highly concentrated; the top four companies account for about 97% of industry revenue.
- Large companies include Carnival Corporation, Royal Caribbean Cruises, Norwegian Cruise Lines, and Disney. Carnival is the world’s largest cruise operator.
Industry Forecast
Industry Forecast
Deep Sea Passenger Transportation Industry Growth
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