Luxury cruises are no longer solely the domain of the retired wealthy, as evidenced by Tokyo Disney Resort's entry into the cruise market, signaling a shift toward younger travelers amid growing demand in Japan. Shipping lines are increasingly turning to floating theme parks as a way to diversify income streams and complement their core cargo shipping operations.
On September 6th, NYK Cruises, a subsidiary of the shipping giant NYK, hosted a briefing near Tokyo Station for 80+ prospective customers interested in a 103-day round-the-world voyage aboard the Asuka II. Initially limited to 30 attendees, the presentation was expanded due to heightened interest. Despite the high cost - ranging from 8 million to 40 million yen (US$56,000 to US$280,000) - NYK Cruises reports that ~30% of the passengers are first-time cruisers.
For Japanese travelers, cruising is becoming a more attractive option as rising airfare, accommodation, and other travel costs are compounded by the weak yen. Kenji Atsuta, managing corporate officer of sales and marketing at NYK Cruises, noted that the all-inclusive nature of cruise pricing, covering accommodations and meals, is appealing to many. Asuka II resumed her round-the-world cruises earlier this year following a 6-year hiatus, now equipped with Starlink satellite internet, allowing passengers to stay connected or work remotely while at sea.
The cruise industry is also attracting younger travelers, particularly for shorter voyages lasting one to several days. NYK Cruises has reported strong demand for these shorter domestic cruises, with many bookings reaching pre-pandemic levels. The industry's reputation, which suffered during the early days of the COVID crisis when the Diamond Princess was quarantined in Yokohama, has seen significant recovery, aided by enhanced health and safety measures.
According to a March survey by the Cruise Lines International Association, ~27% of passengers in the past 2 years were new to cruising, a 12% increase compared to the previous 2-year period. In Japan, recovery is visible, with 196,200 Japanese cruise passengers recorded last year. While this is still 45% below the pre-pandemic high of 355,700 in 2019, the resurgence in cruise traffic, driven largely by foreign lines, is pushing the numbers upward. Japan's cruise industry had been steadily growing in the decade prior to 2019.
The future of Japan’s cruise sector appears promising. NYK Cruises is set to launch a new vessel, the Asuka III, next year, while Mitsui O.S.K. Lines is also scheduled to debut a new ship in 2024. The industry’s shift toward diversification is partly driven by the volatility of the cargo market. Traditionally focused on affluent seniors, Japan’s cruise sector is now witnessing new entrants like Tokyo Disney, targeting younger passengers. In July, Oriental Land, the operator of Tokyo Disneyland and Tokyo DisneySea, announced a 330 billion yen investment in its cruise business, offering short, activity-filled voyages. Fares for these 2- to 4-night cruises are expected to range from 100,000 to 300,000 yen.
Masayuki Ito, managing director of the Japan Oceangoing Passenger Ship Association, noted that Disney's expertise in theme parks and hotels may serve as a catalyst for improvements across the industry. The new Disney cruise offerings will combine spacious accommodations, immersive experiences with Disney characters, a variety of dining options, and recreational activities, potentially setting a new standard in the market.
However, one challenge facing Japan’s cruise industry remains the ongoing labor shortage. The demanding qualifications and lifestyle associated with working at sea have made it difficult to attract sufficient staff, an issue that has long affected the industry.