MEGATREND DISCUSSION: Increased Focus on “Share of Wallet”Tips: Choosing the best accommodation type for your trip

Cruise Lines and “Share of Wallet”: A Delicate Balancing Act

For years, the cruise industry has been driven by a singular goal: keeping passengers happy and encouraging them to return. In today’s post-pandemic environment, this has changed. Lines are still very interested in providing superior service and experience for their passengers. This is not disputed. The context, however, has changed to capturing as much of the total value of the vacationers spend as they can. This should surprise no one as it is the single loudest mantra in the global business world.

In the case of the cruise industry, it means they need a “captive passenger”. That is, a passenger that has booked and paid for a cruise with the line with high odds of them taking the cruise. Once onboard, direct marketing, upselling, future selling, and other kinds of selling can be one to the passenger to get them to spend more. Traditionally, the direct spend on-board compared to the booking was 30 to 50% and includes spend on the “all in” packages, specialty dining, mandatory services, ship Wi-Fi etc. Recently, that number has been moving up and often exceeds 100 to 200% of the original booking cost.

From private islands to onboard pay-to-play experiences, cruise lines are exploring new ways to funnel spending into their own ecosystem. However, as they strive to boost revenue, this strategy comes with risks, particularly among loyal cruisers who feel increasingly “nickeled and dimed.” Let’s look into the elements of this shift and explore what it means for the future of cruising.

The Push for Revenue Generation: Captive Spending and Pay-to-Play

With the industry recovering from a pandemic-induced financial hit, cruise lines are using creative strategies to capture revenue throughout the passenger journey. Traditional inclusive amenities are being replaced by premium, paid experiences, with cruise lines doubling down on tactics to keep spending in-house. Here are some ways this revenue capture is being implemented:

Private Islands as Controlled Spending Environments
Cruise lines have long offered private islands as stops on Caribbean itineraries. But in recent years, these islands have transformed from simple beach stops into sprawling entertainment complexes. Islands like Royal Caribbean’s Perfect Day at CocoCay and NCL’s Great Stirrup Cay now feature an array of premium-priced amenities—water parks, exclusive beach areas, luxury cabanas, and upscale dining—all designed to keep passengers spending without ever leaving the cruise line’s control. These pay-to-play attractions are profitable for the cruise line, but for passengers, they come at an additional cost that may feel less like vacation and more like a constant upsell.
Onboard Upselling and Pay-to-Play Activities
The cruise experience has changed markedly with the rise of onboard “pay-to-play” options. Passengers are seeing fewer complimentary activities, replaced by exclusive spaces and specialty dining options that come at a premium. Examples include:
- Priority Access Fees: For an extra charge, passengers can enjoy perks like early boarding, reserved seating, or even priority access to ship venues and activities.
- Exclusive “Ship within a Ship” Areas: Segregated spaces for those willing to pay extra, such as Norwegian’s The Haven, offer a more luxurious experience. While these areas add value, they limit public space for other passengers, subtly encouraging upgrades.
- Specialty Dining Proliferation: Beyond the main dining rooms, cruise lines now offer a growing number of specialty restaurants that require an additional fee. From steakhouses to themed culinary experiences, these options invite guests to spend on unique dining experiences—but at a cost that can quickly add up over a voyage.

Third-Party Partnerships and Excursions
By partnering with exclusive shore excursion providers, cruise lines ensure that a larger share of excursion spending stays within their ecosystem. While these curated experiences promise convenience and reliability, they often come at a premium compared to what local operators might offer, and some passengers feel pressured to choose these options.

The Impact on Guest Experience: Balancing Revenue and Satisfaction

The shift toward maximizing revenue has clear implications for the guest experience. While these strategies are profitable, they come at a cost in terms of passenger satisfaction. Here’s how:

Perceived “Nickel and Diming”
Loyal cruisers, in particular, have noticed the shift. What was once part of an all-inclusive experience now carries a price tag, creating a sense of being “nickeled and dimed” throughout their trip. Many passengers are finding that amenities once included—such as certain dining options, basic activities, or priority access—are now reserved for those willing to pay extra. This perceived shift in value can leave loyal passengers feeling undervalued.
Loyalty Programs Losing Value
Traditional perks for loyalty members, like priority boarding or reserved seating, are now often available to any passenger who buys a premium package, regardless of loyalty status. This dilution of loyalty benefits risks alienating long-time customers who have earned these perks over years of cruising. For them, seeing new or infrequent cruisers buying into their hard-won benefits can feel like a betrayal, undermining the foundation of brand loyalty that cruise lines have built over time.
The Price of Connectivity
On extended cruises, Wi-Fi access has become an essential service, especially for remote workers or those wanting to stay connected with family. However, cruise lines are charging hefty fees for connectivity packages on long voyages, sometimes upwards of $800 to $1,000 for a 30-day trip. With passengers, essentially a captive audience, these prices can feel exploitative, leading to dissatisfaction and a sense of being overcharged for basic amenities.
Loss of Authenticity
Many passengers are looking for authentic travel experiences, but as cruise lines increasingly funnel guests toward private islands, traditional port visits that offer genuine cultural interactions are becoming fewer. Instead, these controlled environments prioritize upselling opportunities over the cultural immersion that many passengers value, leaving some feeling that the experience has become overly commercialized.

The Future of Share of Wallet: Where Will Cruise Lines Draw the Line?

Looking ahead, cruise lines face a delicate balancing act in maximizing revenue without diminishing the guest experience. Here are some potential future scenarios:

Revenue Growth Through Onboard and Pre-Cruise Sales
Likelihood: High
Cruise lines are finding great success in pre-cruise upselling, with data showing that passengers who pre-purchase amenities are likely to spend more onboard as well. For example, Royal Caribbean reported that for every dollar spent on pre-cruise purchases, passengers spend an additional fifty cents onboard. This trend of capturing more spending before guests even set foot on the ship is likely to continue as cruise lines refine their pre-cruise sales strategies.
Further Segmentation of Loyalty and Priority Services
Likelihood: Moderate to High
Loyalty perks will likely continue to be available for purchase, and cruise lines may introduce new tiers or packages that combine loyalty-based perks with priority services. This approach could offer new revenue streams while continuing to test loyal passengers’ tolerance for paying for benefits they previously enjoyed without charge.
Expansion of Curated Experiences on Private Islands
Likelihood: High
Private islands will continue to evolve into premium destinations with an increasing focus on high-ticket amenities and experiences. As these islands grow in popularity, cruise lines may invest further in developing them into controlled environments where every activity, meal, and experience is an opportunity for upselling, keeping passengers’ spending within the cruise line’s ecosystem.
The Challenge of Authentic Experiences vs. Controlled Environments
Likelihood: Moderate
As private islands become more prevalent, some passengers will inevitably miss the authenticity of traditional port stops. Cruise lines may experiment with ways to integrate local culture or create partnerships that bring authentic experiences to their private islands. If this balance isn’t managed well, cruise lines risk alienating guests who value genuine cultural interactions, potentially pushing them to seek alternatives.

The Road Ahead: Balancing Revenue with Passenger Satisfaction

As cruise lines work to capture a larger share of passengers’ wallets, they’re venturing into complex territory. For many loyal cruisers, this shift from inclusivity to constant upselling feels less like hospitality and more like a revenue-driven enterprise. The increasing prevalence of pay-to-play activities, premium packages, and exclusive experiences threatens to erode the trust and goodwill that have long supported passenger loyalty.

The cruise industry faces a choice: continue to expand revenue capture strategies, risking potential customer dissatisfaction, or balance these approaches with meaningful, value-driven experiences that foster loyalty. Finding the right balance will be crucial. Cruise lines that focus solely on short-term profit may see an initial boost, but at the expense of long-term customer relationships.

For passengers, the challenge will be navigating this new cruise landscape, understanding what’s included, and deciding which add-ons are worth the investment. As cruise lines continue their quest for wallet share, passengers will be watching closely, weighing the value of their vacation experience against the growing list of expenses.

The future of cruising may well depend on finding a way to blend profitability with the promise of a memorable, inclusive experience. Cruise lines that strike the right balance are likely to emerge as leaders, fostering loyalty in a market where authentic, value-driven experiences are increasingly rare.

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