Anchors aweigh: India's cruise craze, record footfalls draw Singapore OTA to its shores

Cruise-only OTA

Akansha Agarwal, co-founder and Chief Marketing Officer at Int2Cruises, wants people to book their cruises just the way they book flights.

"There is only 1 percent of conversions when it comes to online bookings for cruises because the booking can become a little overwhelming for customers as they have to take too many decisions from flight travel to the port from where the cruise will depart, visas, room bookings, and itineraries. Plus, there is a vacuum in terms of platform providers offering live inventory," she said.

On Int2Cruises, travellers can choose and compare live inventory of various cruise liners and select the preferred ship. "On the same platform, users can book their ancillaries as well," she added.

However, some of the ancillaries, like flight bookings and online visas, are yet to start.

"We are actively working with airline providers, so that it becomes like a fly-cruise proposition. Within a few months, this should become online. We are offering it currently, but offline," he said.

"Visa is one of the biggest pain points for customers. Hotels and flights can still be booked in isolation, but if you don't have the visa, you can't fly to that particular country. We are solving the challenge. We are in talks and within a month, we will provide visas online," he said.

Cost of cruising

Agarwal is also curating land-plus cruise packages ranging from Rs 13,000 to Rs 180,000 per person per night, including pre/post land excursions, transfers, depending on the destination, cruise line, and level of accommodation.

Cruise-only packages start as low as Rs 6,500 per person per night, going up to Rs 516,000 per person per night for ultra-luxury experiences.

The co-founder said that recent trends show that Indians don't mind spending big on cruise travel.

"There is a noticeable shift in purchasing behaviour. Previously, most Indian travellers opted for inside cabins for around Rs 45,000 per person for Asia sailings and Rs 86,000 per person for the rest of the world cruises. Today, 70 percent of travellers prefer balcony cabins, often priced around Rs 90,000 per person in Asia, and up to Rs 300,000 per person for long-haul cruises," she noted.

In addition, 20 percent travellers now book suites and onboard spends has increased significantly with the current average of Rs 8,000 per person per day with people opting for wi-fi packages, beverage plans, specialty dining, among others.

High interest levels

Agarwal has also witnessed a key behavioural shift. "Previously, travellers in India planned land-based holidays and occasionally added a short cruise as an extra. Today, cruising has become the centrepiece, with travellers choosing the cruise first and then building their itinerary around it."

Interest levels are high among Indians for cruise travel as more international cruise liners are coming to India and nearby home ports like Singapore, Dubai and Thailand, she added.

India holds a huge potential for the Singapore cruise-only OTA. "India is poised to become one of our top revenue-contributing markets. We estimate India to be at Rs 600 crore GMV (gross merchandise value/ total order value) by 2027 -2028, given the growth in outbound tourism and the untapped cruise market in India," Agarwal said.

India boasts of a 7,500-km coastline and over 14,000 km of navigable rivers, making it a strong market for ocean and river cruise tourism.

She said that India's outbound market is projected to grow at 11 percent CAGR (compound annual growth rate) by 2034 to become a $55 billion industry. Online travel market spends, growing at 10.5 percent CAGR by 2029, is expected to reach $28.4 billion.

"Among the global spenders on tourism and travel in the outbound sector, India is supposed to become the fourth-largest. Aspirations are high. The government is doing a great job in terms of the Cruise Bharat Mission. It's just the right time to tap the Indian market," she said.

Cruise Bharat Mission

Under the Cruise Bharat Mission, launched on September 30, 2024, the Indian government aims to take cruise passenger traffic to 1 million by 2029 from 4.71 lakh in FY24 -- the highest ever.

The aim is to boost different segments of cruise tourism across deep sea cruises, coastal cruises, river cruises, and yacht cruises.

The Indian government plans to spend Rs 45,000 crore ($5.4 billion) to develop river cruise tourism.

It expects river cruise passengers to grow from 0.5 million in Phase 1 of Cruise Bharat Mission to 1.5 million by Phase 3. The number of international cruise terminals are estimated to increase from 2 in Phase 1 to 10 by Phase 3 while river cruise terminals are expected to increase from 50 to 100.

The Centre is also looking to establish alliances with countries like United Arab Emirates, Male, Maldives, Singapore, Malaysia, Thailand, Myanmar, Bangladesh and Indonesia to increase its international cruise outreach.

Preferred destinations

Singapore is already one of the most preferred destinations, said Agarwal.

"Majority of the bookings are for Singapore right now, because it is near to home. People are also inquiring more about Europe. Europe remains a strong favourite, particularly the Mediterranean and Northern Europe, while expedition cruises to Antarctica and the Arctic are also drawing interest among adventure seekers. There’s a growing appetite for newer and larger ships, and a strong demand for short-haul cruises from accessible hubs like Singapore, Hong Kong, Japan, Dubai, and Mumbai."

While Tier-I cities lead in terms of volume for cruise booking, Agarwal is seeing significant traction from Tier-II cities as well. "Kochi, Jaipur, Nasik, Aurangabad, Chandigarh, Amritsar and Pune are now catching up," she said.