US Hotel Industry Leverages Cruise Travel Surge for Revenue Growth

• Hotels in the largest US cruise markets have seen increased demand, outpacing overall industry growth.
• Hoteliers have formed partnerships with cruise operators to benefit both sectors. These partnerships include arrangements for pre- and post-cruise stays and day passes for cruise guests.

With the surge in the demand for cruise travel in the United States, hoteliers strategically leverage this trend to enhance their revenues. Collaborations between lodging companies and cruise operators provide customers and cruise staff with specific hotel options for their stay before and after their trips.

Hotels in the largest US cruise markets have reportedly outperformed the overall US hotel industry in terms of increased demand. Notably, hotel chains like Hilton are exploring innovative ways to tap into this growth, offering day passes to potential cruise guests who do not require overnight accommodation.

Pete Sams, Chief Operating Officer with Denver-based Peregrine Hospitality, observed a significant uptick in demand for their hotels from cruise travelers. “We’re seeing increased demand for that hotel from cruise travelers pre and post,” he stated.

Aimbridge Hospitality, which manages over 1,000 hotels, has expanded its business through wholesale agreements with cruise companies. It has partnerships with major cruise lines for pre- and post-stays, sometimes through a wholesale provider or directly with the cruise lines.

This collaboration comes in response to a shift in the US travel market, where cruise demand has surged while lodging demand has flattened. According to the Cruise Lines International Association, North American cruise passenger volume increased by 18% in 2024, with more than a quarter of passengers between 2021 and 2023 being first-time cruisers.

Despite the general flattening of revenue per available room (RevPAR) in the US hotel industry, hotels located near the largest US cruise ports seemed to outperform the overall market in 2024. For instance, RevPAR at hotels within five miles of the Port of New York and New Jersey rose 9.7% from a year earlier, while hotels near the Ports of New Orleans and Tampa Bay had RevPAR gains of 5.6% and 5.2%, respectively.

In addition, Hilton’s partnership with ResortPass, which allows day travelers to access hotel amenities without committing to an overnight stay, has proven popular. This initiative appeals to cruise passengers accustomed to the high-quality amenities on upscale cruise ships.

The hotel industry appears set to either compete or collaborate with the growing cruise capacity. The global cruise capacity is predicted to grow at least 10% between 2024 and 2028, and the cruise-passenger count is forecasted to increase 9.5% in 2027. This trend suggests promise for hoteliers willing to cooperate with the burgeoning cruise industry.

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