Cruise operators hoist anchor for growth, set sail for bigger fleet

India’s cruise industry is expanding, driven by a post-pandemic surge and a rise in experiential travel. Cruises, once seen as luxury vacations reserved for the wealthy, have gained popularity among middle-income families and solo travellers, lifting revenue growth and prompting cruise companies to introduce additional offerings.

 

Cruise companies like Antara Cruises and Cordelia Cruises told Business Standard that they plan to invest in expanding their fleet size and raise funds. Meanwhile, Alaknanda Cruiseline aims to add a vessel to its fleet this year and expand its presence to more cities.

 

This comes after the Economic Survey 2024-25 highlighted that improved waterways have benefited both cargo and tourism. As of October 2024, 82,587 passengers had taken day cruises, while the number of night cruise passengers rose fivefold to 11,431 in 2023-24 compared to 2018-19.

 

However, industry experts believe India has sizeable untapped potential, with 14,850 kilometre (km) of navigable waterways. As of October 2024, the country has only 26 operational waterways spanning more than 4,800 km.

 

Responding to this demand and government initiatives, Raj Singh, founder and chairman of Antara Cruises, which operates nine river cruises, said the company plans to invest ₹800 crore to ₹1,000 crore, using a mix of internal and external funding, depending on the project. Its expansion will focus on river and coastal cruising.

 

India’s Finance Minister Nirmala Sitharaman announced several incentives for shipbuilding and shipyards in the Union Budget, which Singh sees as a positive step for the cruise tourism industry. He added that the company is fully booked for this year and is already taking reservations for 2026 and 2027.

 

The government is also working to promote river cruise tourism on national waterways, according to the survey. Passenger movement on national waterways in the second quarter (Q2) of 2024-25 (FY25) exceeded 3.36 crore, up from roughly 6.7 million in Q2 of 2023-24.

 

“We have reached our normal peak traveller numbers and had a very good season (in 2024). Financially, we performed better than before the pandemic, with both revenue and passenger numbers increasing,” Singh observed.

 

Another river cruise company, Alaknanda Cruiseline, which operates five river cruises in Varanasi, plans to expand to Ayodhya.

 

“After that, we plan to introduce a 24-bedroom luxury residential cruise — a floating hotel in Varanasi,” said Jayant Malaviya, business development manager at Alaknanda Cruiseline. “It will operate multi-day tours from Varanasi to Prayagraj and Varanasi to Kolkata.”

 

He added that the floating hotel will likely become operational this year, either after July or August. The company will fund these projects internally. Post-pandemic, it has seen a 25 per cent increase in revenue.

 

Unlike Antara Cruises, which focuses solely on river cruising, Malaviya is open to launching a sea cruise line. Both river cruise companies see strong demand from international tourists.

 

Cordelia Cruises, a sea cruise company with a single ship accommodating about 2,000 guests, has sold nearly 73,000 rooms, serving about 180,000 guests so far in FY25.

 

“In light of our only ship, Cordelia Empress, operating near full capacity, we have decided to add two more cruise ships to our fleet,” the company said in a release.

 

The company also plans to raise almost ₹800 crore through an initial public offering by issuing equity to institutional and other eligible investors, subject to regulatory approvals, according to the release.

 

Jurgen Bailom, president and chief executive officer of Waterways Leisure Tourism, the parent company of Cordelia Cruises, said they are in talks with major cruise companies in the US and Europe looking to sell their smaller ships, each accommodating 2,000 to 2,500 passengers.

 

“We have multiple offers from existing cruise lines as they upgrade their fleet with larger ships. Given the current market dynamics, this is an opportune time for us to expand our fleet,” he said.

 

Bailom expects a 5-10 per cent increase in occupancy levels in the coming financial year (2025-26).

 

“India has very few ports, with only six cruise ports today. We currently operate routes through Mumbai, Goa, Kochi, Lakshadweep, Chennai, and Puducherry, along with a couple of international ports in Sri Lanka. The most popular route right now is from Mumbai to Lakshadweep,” Bailom said.

 

Cordelia Cruises plans to launch a new route by next summer to Singapore, with two sailings from Chennai to Singapore and back. The company is also looking to add two sailings from Kochi to the Maldives and back.

 

Bailom added that India’s cruise industry will take another 10 years to develop further. 

LUXURY AFLOAT

 

*   Antara Cruises plans to invest ₹800-1,000 cr, focused on river and coastal cruising

 

*   Alaknanda Cruiseline plans to introduce a 24-bedroom luxury residential cruise in Varanasi

 

*  Cordelia Cruises planning to raise approximately ₹800 cr through IPO and add new routes, expand fleet

 

*  Passenger movement on national waterways in Q2FY25 was more than 33.6 mn, an increase from approximately 6.7 mn passengers in Q2FY24