As the cruise industry grapples with the slowdown in new ship orders due to inflation and high interest rates, cruise lines are turning their attention to extensive renovation projects to breathe new life into their older ships. This shift in strategy makes financial sense, considering the exorbitant costs of building new cruise ships. With renovation projects being significantly cheaper and the potential to prioritize revenue-generating experiences, cruise lines are leveraging this opportunity to enhance the guest experience and generate additional income.
According to Walter Nadolny, professor emeritus of marine transportation and global business at the State University of New York Maritime College, the cost of building a new cruise ship ranges from $80 million to nearly $2 billion. In contrast, the price tag for renovations is significantly lower. Nadolny emphasizes that refurbishments present cruise lines with a much cheaper alternative to newbuilds. By focusing on high-profit areas like upscale restaurants and other revenue-generating amenities, cruise lines can achieve a refreshed and appealing onboard experience while keeping expenses in check.
Following the pandemic-induced pause in operations, the rate of new ship orders has decreased significantly. Approximately 40 ships were due to be delivered in the past two years, but this figure dropped to just 10 in 2024. The year 2025 is expected to see nearly 20 ship deliveries, but there are only nine ships currently on order for 2026, as reported by Cruise Industry News. Carnival Corp., the world’s largest cruise company, is grappling with its smallest order book in decades, with no new ships expected in 2026 for its nine cruise brands. CEO Josh Weinstein states that the company plans to add only one or two newbuilds per year for several years after 2026. Despite the slowdown in new ship orders, cruise lines are not halting their expenditures. Carnival Corp. expects to have 580 drydock days in 2023, an 18% increase from the previous year, as it seeks to strengthen its balance sheet after incurring debt during the pandemic.
Holland America Line has seized this opportunity to embark on major renovations for four of its ships, ranging from 5 to 24 years old. The Nieuw Statendam (built in 2018), Nieuw Amsterdam (2010), Noordam (2006), and Volendam (1999) will undergo extensive work from late 2022 to 2024. The renovations aim to enhance accessibility in compliance with the Americans With Disabilities Act and upgrade select cabins, lounges, bars, spas, and open decks. The highlight of Holland America’s renovation efforts is the introduction of a new stand-alone restaurant, Morimoto By Sea, on the Nieuw Amsterdam. This exclusive dining venue charges $55 per person and is scheduled to be installed on other ships as pop-up versions during select sailings. Holland America is also reintroducing libraries across its fleet, responding to guest feedback expressing a desire for onboard libraries where they can enjoy top-selling books during their vacation.
As Norwegian Cruise Line eagerly anticipates the launch of its third Prima-class ship in 2025, the company is focusing on renovating the Norwegian Joy, a vessel built in 2017. The renovation project involves replacing the Galaxy Pavilion’s virtual reality complex with a lavish spa thermal suite, making it the largest in the Breakaway Plus class. Guests will have access to amenities such as saunas, ice rooms, aromatic steam rooms, and a unique hydrotherapy course. The refurbishment will also feature the addition of new balcony cabins and the expansion of Premier Owner’s Suites, offering three bedrooms, renovated living rooms, and new dining rooms overlooking the forward-facing Horizon Lounge. To cater to adult guests, Norwegian Cruise Line will expand the adults-only Vibe Beach Club, repurposing the space previously occupied by the laser tag arena.
Windstar Cruises plans to rejuvenate its fleet of six small ships by undertaking a multimillion-dollar renovation project. The company aims to redesign and update the Wind Star, Wind Spirit, and Wind Surf, three-mast sailing ships built in the late 1980s. The renovation project includes revitalizing the pool deck, replacing the pool, upgrading technology in staterooms, introducing new gym equipment, and incorporating specially commissioned art. The focus of these renovations is to create versatile spaces that can cater to various needs, including hosting events and fostering relaxation and connection among guests.
After the successful launch of the Celebrity Ascent, the fourth Edge-class ship, Celebrity Cruises is now contemplating the renovation of its Solstice-class ships. With the first Solstice-class ship launching 15 years ago, the line aims to bring the cutting-edge design elements of the Edge-class to its older vessels. While the details of the renovation project have not been disclosed, Laura Hodges Bethge, president of Celebrity Cruises, has highlighted the addition of seven features to the next Edge ship, the Celebrity Xcel. This clue suggests that passengers can expect some exciting enhancements on the Solstice-class ships as well. Notably, Celebrity previously embarked on the Celebrity Revolution upgrade plan, investing $500 million to incorporate Edge-class features into older ships in the fleet, such as the Celebrity Millennium, Eclipse, Summit, and Silhouette.
As the cruise industry faces a slowdown in new ship orders, cruise lines have shifted their focus towards extensive renovation projects to enhance their older ships. This cost-effective alternative enables them to revitalize the onboard experience, prioritize revenue-generating areas, and generate additional income. From major renovations to introducing new dining venues and expanding amenities, cruise lines are capitalizing on this opportunity to provide guests with an improved and memorable cruising experience.
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