Yahoo Finance Are cruises value for money? Experts warn Aussies to check these things first to avoid rip off
“As demand increases and costs rise across the industry, major players are finding it challenging to maintain previous discount levels."
Cruise holidays are cheaper than ever, but an expert has questioned whether they are really the best-value holidays Australians could go on.
Aussies aren't strangers to cruises. Already among the world’s biggest cruisers per capita, as many as a quarter of Australians are looking to go on a cruise, and more than a third of those are aged 35 and under.
There are clear cost benefits to going on a cruise - like inclusive pricing, slashing travel costs, the convenience of not having to organise extra entertainment - but senior finance lecturer at RMIT University, Angel Zhong, told Yahoo Finance that there were a few other things holidaymakers should consider.
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Is a cruise holiday value for money?
“Determining whether a cruise offers good value for money isn't a straightforward matter and involves considering various factors,” Zhong told Yahoo Finance.
“It's essential to consider both perspectives before reaching a decision, especially in light of the current rise in inflation and the accompanying cost-of-living crisis affecting various aspects of our lives.”
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The first thing would-be travellers should consider before booking is the port city the cruise is leaving from. They can be outside of main cities or towns and the cost of flights getting there, or connecting transport might not be worth it.
"This could impact their overall vacation budget," Zhong said.
The overall cost of cruises dropped in the immediate aftermath of the COVID-19 pandemic, but as more people decide to hop back on the cruise circuit, prices can creep up too.
“As demand increases and costs rise across the industry, major players are finding it challenging to maintain previous discount levels," she said.
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"Accumulating substantial debt in 2020, these brands are still grappling with financial burdens that are now reflected in higher cruise fares. Despite this, there may still be chances for savings during peak holiday seasons and early 2024.
“Overall, I think that while cruises offer a cost-effective alternative, the revival of this industry means that the cost advantage is quickly diminishing.”
Are cruises all-inclusive? And is this a good chance to save money?
Cruises are all-inclusive which has benefits for budget-conscious travellers.
Instead of having to pay for separate hotels, meals, entertainment and transport, the cost is all rolled into one, which you know upfront.
“A single fare will include all your travel and accommodation, all your meals on board, and a huge range of activities and on-board entertainment, “ Cruise Lines International Association (CLIA) Australasia managing director Joel Katz told Yahoo Finance.
“Itineraries will often visit multiple destinations and allow you to see whole regions without taking multiple flights or arranging overland transport.
“The cost per day can be significantly cheaper than travelling independently, once you consider all the meals and activities included.”
Jill Abel, CEO of the Australian Cruise Association, agreed.
“On just one cruise, guests will have the opportunity go ashore at numerous destinations with professionally organised and guided shore experiences at hand for them to enjoy,” Abel told Yahoo Finance.
Are cruises just for older people?
With younger travellers showing interest in cruising more than ever, more cruise ships have started to cater to this demographic by offering plenty of onboard entertainment and activities for their more active preferences.
However, this shift is only one of the new trends observed in the cruising industry. Recent data from CLIA also shows holidaymakers sailing with family members representing at least two generations account for 73 per cent of cruise travellers.
“Cruise holidays are especially popular with multi-generational travel groups, and the trend towards family holidays is increasing,” Katz said. “It’s now common to see groups travelling together with parents, grandparents, children and adult offspring.
“It’s also more common for people to travel as singles, either with friends or solo,” he added.
“Cruise lines are responding by creating more single cabins in new ships and retrofitting some of their current ships to include additional cabins for those travelling alone.”
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