Cruise lines are chasing luxury travelers with bigger, more expensive suites

The latest push in high-end travel is taking place on the high seas, as cruise lines increasingly rely on luxury offerings.

On Regent’s Seven Seas Splendor, an all-luxury ship, staterooms cost between $1,800 and $15,000 per night for its top-of-the-line reservation, the Regent Suite.

The difference isn’t just in the approximately 5,100 square feet of space. The top-floor suite features a Steinway piano, a private dining room reserved for its occupants, and a wraparound terrace with a hot tub and views comparable to those from the ship’s bridge.

Several passengers wanted the suite for Splendor’s 151-night world cruise that sets sail in January, Regent told CNBC, and it’s almost always busy.

Regent is aiming even bigger, as the cruise line plans to launch the Seven Seas Prestige in December, its first new class of ship in a decade. Its superior suite costs $25,000 per night.

While mega-ships equipped with surfboards and water slides can carry more than 7,500 passengers, smaller elite ships – some carrying fewer than a thousand passengers – generate profits for companies like Norwegian Cruise Line Holdings. The company owns the Regent and Oceania luxury lines.

Norwegian CEO John Chidsey said he was focused on strengthening the positioning of luxury brands, improving products and customer experiences, and strengthening their business performance.

Regent and Oceania, he said, are in good shape for 2027, although Chidsey did not break down the metrics between the companies.

Cruise competitors are also betting big on luxury offerings, investing in new ships and more specialized experiences.

Regent competes with established luxury cruise lines, including Royal Caribbean Silversea and Carnival Seabourn, as well as new entrants offering hotel names to the market. Four Seasons, Aman and Orient Express are among the brands bringing luxury hospitality to yacht-style ships.

The cruise industry predicts that the luxury cruise fleet will grow from 104 ships in 2026 to at least 130 by 2036.

And while the number of cruise lines worldwide is expected to grow by about 11% between 2025 and 2028, according to the Cruise Lines International Association, or CLIA, industry investment is increasingly moving toward luxury and expedition brands, with an increase in orders for smaller ships and fewer berths over the next decade.

From 2020 to 2025, there was a 71% increase in the number of luxury ships and an 84% increase in the number of berths, according to CLIA. The orders indicate a further 26% increase in the number of ships until the end of 2029 and a 32% increase in capacity.

Other hotel companies are also investing and expanding their ultra-premium offerings. Hotels, casinos, airlines, restaurants, spas and other travel and leisure companies are following the trend: affluent customers remain willing to pay for more space, personalized service and distinctive experiences.

United Airlines this year, launched its largest Polaris Studio Suites with private doors and caviar service. American airlines has increased its sleeping capacity and announced Thursday that its premium passenger unit revenues rose 18.5% in the third quarter, compared with 14.4% for its main cabin.

Marriott’s Second-quarter results showed that luxury revenue per available room grew faster than the overall hotel sector in the United States and Canada, increasing 9.1% year-over-year, compared to 5% for all Marriott hotels in the region. In June, CEO Anthony Capuano told CNBC that there is an “almost insatiable appetite” for luxury travel.

Wynn Resorts, which caters almost exclusively to an upscale clientele, has chosen to keep its rates high in Las Vegas, even as visits have slowed over the past year, rather than fill every room with travelers looking for a bargain.

Asked on stage at the Global Gaming Expo in September whether Wynn was making more money with fewer customers, CEO Craig Billings said, “We will always focus on what is the most comfortable experience for the customer and where we can generate the highest possible EBITDA.”

But offering luxury vacations doesn’t guarantee a company’s fortune.

The Ritz-Carlton Yacht Collection, for example, has struggled to stay busy despite major marketing campaigns and has racked up nearly $700 million in losses since 2017, according to the Financial Times.

Increased competition in this area could reduce the perception of scarcity. As more companies add luxury products, they must convince travelers that the experience is worth the price.

Sands of Las Vegas reported lower-than-expected revenue and profit earnings on Wednesday, hurt by high-end segments in Macau and Singapore.

“When customers don’t show up, it’s a little problematic,” CEO Patrick Dumont said during the company’s earnings conference call.

Dumont said he couldn’t pinpoint a single cause for the weakness, adding that “maybe people don’t feel as good about the market,” but he said he thought this quarter was an aberration.

CNBC asked Dumont during the NBA China Games in Macau on Oct. 9 whether luxury travel was in danger of becoming overcrowded.

In response, he highlighted long-term wealth creation in Asia and said the challenge was creating experiences that customers want to return to.

“It’s not about whether there are enough customers,” he said. “It’s, can we create an interesting enough set of experiences where people find us indispensable in their lives.”