Half-Empty a Year Ago, Cruises Are Now Packed Like Sardines

Cruise lines are seeing occupancy levels above 100% on many ships, largely due to the discounts and promotions many cruise lines offered in late fall and winter. Passengers are encountering long lines for activities on board, sold-out excursions and stressed-out crew members, a year after all but having ships to themselves. In extreme cases, cruise lines are canceling some people’s trips after overselling.

Royal Caribbean Group reported that the occupancy rate across its cruise lines averaged 102.1% during the first quarter of 2023, up from 57.4% in early 2022. Norwegian Cruise Line Holdings says the occupancy rate averaged 101.5% during the first quarter and projects it to average 103.5% for the full year.

Cruise occupancy rates can rise above 100% because they are based on the expectation that two people will stay in each cabin, and this was a common occurrence before the pandemic. When three or four passengers stay in one cabin, occupancy rates can exceed 100%.

The average starting cost of a five-night cruise on a major cruise line for an inside cabin is $743 in June, according to data from cruise website Cruise Critic. That’s up from $551 during the same month last year. The price of a cruise vacation varies based on destination, duration, cabin type and cruise line, among other factors.

Bookings have been strongest for “sun and fun destinations" like the Caribbean, says David Crooks, senior vice president of product and operations for World Travel Holdings, a Massachusetts-based travel agency that operates cruise-booking sites including CruisesOnly and Cruises.com. Many of these cruises are sold out for this summer and are seeing strong demand well into 2024, he says. There is more flexibility for cruises in Europe and Alaska.

Much like airlines, cruise lines sell more reservations than they can accommodate for a given booking, cruise industry executives say, under the expectation that some portion of travelers will choose not to go.

“Hotel companies don’t build a property with the goal of having empty rooms and sports teams don’t build stadiums to have empty seats," Chris Chiames, chief communications officer at Carnival Cruise Line, said in an email.

Stateroom shortage

Some cruise lines have encountered a larger number of oversold ships in recent months.

Royal Caribbean has had multiple sailings that were oversold in recent months. A company spokesman said that its cruise lines’ revenue teams proactively contact select guests to avoid overselling cruises. He notes that these customers are offered the ability to choose a different sailing, with several dates to choose from. He said this approach can be successful in avoiding the need to bump guests.

The recent spate of overbooked sailings is a reflection of pent-up travel demand, Crooks says.

Sometimes the rebooking options are on different ships, says Colleen McDaniel, editor in chief of Cruise Critic. Passengers also often can choose a refund of all money already paid to the cruise line, plus a future cruise credit.

For those with flexibility, this could mean a free or heavily discounted cruise. For others, getting bumped can represent a major financial burden.

Diane Gainey, a Maryland retiree, planned to go on a Celebrity Cruises voyage in Japan with her husband and son this September. She had booked the cruise in February 2022 to take advantage of a deal offered during another sailing. A few weeks ago, Celebrity notified her that her reservation was canceled because the ship was oversold.

Celebrity offered her a refund or the option to rebook on a 2024 cruise with a similar itinerary. The family had already purchased airfare and booked a hotel for when they were supposed to arrive in Japan. She made those reservations separately from her cruise booking, meaning they weren’t part of the refund. Celebrity offered to cover up to $500 in ancillary charges, including change fees for airline tickets, Gainey says. But she says she stands to lose as much as $6,000, mostly on airfare.

The family is waiting to negotiate with their airline for a refund or credit to see if Celebrity will offer a better deal. “It’s not like any of this is our fault," she says.

A company spokesman says this was an isolated incident due to unprecedented demand for sailings in Japan. He added that Celebrity offered $450 in future cruise credits and that passengers who rebook cruises for next year will pay the current rate for their future sailing.

All guests on deck

Beyond the cancellations, crowds on ships these days can lead to frustration. Onshore excursions and other premium activities book up far quicker, McDaniel says.

“If there’s something you want to do, and it’s going to make or break your vacation, you should book it as soon as you know you want to do it," McDaniel says.

Careful planning can help travelers avoid some of the headaches caused by more crowded ships. Tanner Callais, founder of travel website Cruzely.com, says he times his arrival on embarkation day on the later side to avoid long waits to board.

During the cruise, he visits dining rooms during nonpeak times and waits until lunchtime to grab a spot by the pool. If a show has multiple performances, Callais says, the later ones typically have smaller audiences.

Kailin Gow, an author who lives in Las Vegas, recently sailed with her husband and teenage daughter from Los Angeles to Vancouver, British Columbia, on a Norwegian cruise. The ship was packed, she says, and the crew appeared overwhelmed. Their cabin steward told the family that he was responsible for 22 cabins on the ship, while in the past he only had to oversee 16.

Norwegian didn’t respond to requests for comment.

“Because it was so overbooked, every time you went out of your room, it felt like you were in a Disneyland line," Gow says. “It made the experience very stressful."

Write to Jacob Passy at jacob.passy@wsj.com