MIAMI BEACH -- Cruise line executives said the industry would weather current economic challenges but acknowledged that consumer uncertainty is causing some pullback.
During the Seatrade Cruise Global conference here this week, executives from lines large and small said that cruising isn't immune to shifts in consumer behavior caused by financial uncertainty. But they also suggested that while a plunging stock market has at least temporarily given some consumers jitters, they would adjust.
Norwegian Cruise Line Holdings CEO Harry Sommer said that until the early April market drops, he would have said everything was fine.
"That's OK," he said. "Two shaky days in the stock market do not have us changing our long-term financial strategy and models."
He also said on Tuesday that "things are already starting to get a little bit better today, we hope. So, it's full steam ahead."
Carnival Corp. CEO Josh Weinstein said that "the uncertainty and the ripple effects absolutely have an impact on the industry" and that consumers are "looking at the volatility."
"They're trying to figure out what does that mean for us? Companies are trying to figure out what does it mean for me? And the hard part about that is that as of now, the answer is, we don't know," he said. "It just takes some time for people to get comfortable with the uncertainty."
Ken Muskat, president at Scenic Group USA, said the industry is in a "wait-and-see situation" but that there has been some booking hesitation.
"We're definitely seeing some slowdown and definitely hearing more people, less around cancellations and more just doing their research, investigating and saying, 'OK, let me think about it for the next week or two and see what's going on,'" he said.
Still, the executives are optimistic that consumers will adjust and continue to prioritize travel.
"We'll definitely bounce back," Muskat said. "At the end of the day, going on vacation and doing experiential things that make a difference in your life is going to prevail over some of the more materialistic things that people spend money on and that's why the industry's as resilient as it is."
Sommer and Weinstein also said they are confident that as in past times of turbulence, once consumers adjust to a new economic normal, they will return to familiar spending habits.
And they expressed optimism about the economy overall, bolstered by statistics from a positive first quarter, which closed before the U.S. imposed tariffs and their corresponding impacts. Carnival yields were 7% higher than the same time in 2024, for example, Weinstein said. However, he described the pace of first-quarter bookings as "choppy," but during a year in which cruise lines were in a far better booked position than ever before.
John Waggoner, chairman at Victory Cruise Lines, also said consumers would adapt to economic changes, and may value cruising more than ever.
"When the stock market goes down, even though it's a paper loss, you inherently feel poorer," he said. "Some people get the attitude that, all right, it was a paper loss, it's bad, but it's a tough world out there so I'm going to go cruising and I'm going to enjoy myself."
And as is often the case in times of economic uncertainty, executives here touted cruising's inherent value as an advantage when consumers tighten their budgets.
"The value for money is there," MSC executive chairman Pierfrancesco Vago said. "People appreciate it."
The changing political winds
As far as the administration creating the current economic waves, CLIA president Charles "Bud" Darr said the organization is "still figuring out" some of the shifts occurring under Trump.
But, he added, CLIA is accustomed to shifts in governments and leadership styles, and said that working in the world of policy requires patience, willingness to be repetitive with messaging and finding government officials who are willing to listen.
"Moods change in the policy atmosphere," Darr said. "Governments change. Individuals change and have different leadership styles. We're used to that."