The cruise industry is experiencing a resurgence in popularity, with particularly strong performance in the post-pandemic environment. Key growth drivers include significant penetration into younger demographic segments, comprehensive multi-destination itineraries, competitive price points, and diversified onboard experiences. However, booking a cruise experience can be more complex than other types of travel due to the variety of options like cabin categories, dining options, and onboard activities. Cruisebound addresses this through its comprehensive comparison and reservation platform, aggregating offerings across all major cruise lines. In an industry where approximately 80% of bookings are facilitated through travel agencies, Cruisebound has developed a streamlined digital solution that delivers agency-level service through both web and mobile interfaces. The platform eliminates booking fees while significantly reducing research time for consumers. With an extensive inventory of over 27,000 itineraries, consumers can be confident that they will not only be selecting their ideal itineraries but also receive transparent pricing. In the last two years, the company has experienced triple-digit revenue growth.
AlleyWatch caught up with Cruisebound Cofounder and CEO Pierre-Olivier Lepage to learn more about the business, the company’s strategic plans, latest round of funding, which brings the company’s total funding raised to $25.7M, and much, much more…
Who were your investors and how much did you raise?Cruisebound closed a $13M financing round led by Thayer Ventures with participation from Link Ventures, former Booking Holdings Chairman and CEO Jeff Boyd, PAR Capital Ventures, Tripadvisor cofounder and former CEO Steve Kaufer, Flybridge, Plug & Play Ventures, and several others. The fresh capital will accelerate Cruisebound’s already-popular cruise booking products.This is the second time Cruisebound has sold equity. Cruisebound announced a Series A investment in January 2023. We’re thrilled about the progress we’ve made over the past 2 years and these funds will allow us to fuel our growth.
Tell us about the product or service that Cruisebound offers.Cruisebound, founded in 2022, helps consumers find and compare cruises from every major cruise line to find the best fit for vacation needs. Our comprehensive inventory includes over 27,000 global itineraries, from the top 19 cruise lines. Features like an AI chatbot trained to answer cruise related questions, a customer service team of agents available to answer questions, and no booking fees sets Cruisebound apart from competitors. Whether it’s a multigenerational family trip to Mexico with Royal Caribbean, an anniversary celebration in the Mediterranean on Virgin Voyages or a once-in-a-lifetime Alaska adventure with Norwegian Cruise Line, Cruisebound makes it easy to discover and book your perfect cruise.
What inspired the start of Cruisebound?When booking my first cruise, I was surprised at how difficult it was to research and book online–and nearly impossible on a mobile device. My go-to travel sites for booking flights and hotels are not designed to sell a complicated cruise product. After a little more research, I found out I was not alone in feeling this way. Although ~80% of cruise bookings are completed with the assistance of a travel agent, two-thirds of existing cruisers state that they would prefer to book online on their own if there was a simple way to do it. Cruisebound is offering that simple and frictionless booking experience while offering the same great deals travel agents offer.
How is Cruisebound different?Cruisebound was designed to solve the pain points of researching and booking a cruise online. Because Cruisebound only sells cruises, we continue to innovate and release new features travelers need to choose the perfect cruise including:
Multi-cabin booking for up to five cabins: 90% of cruisers travel with family or friends and 28% sail together with at least 3 generations, according to CLIA. Cruisebound has developed a simple, industry-leading, feature for holding and booking up to five cabins in a single session.
24-hour cabin hold, free of charge: Cruise bookings often require coordination of complex itineraries amongst several travelers. With Cruisebound, cruisers can hold a cabin for up to 24 hours, online and free of charge, to confirm the details with their friends and family.
AI chatbot for first-level customer service: Cruisebound trained an LLM-based recommendation engine to help its agents give in-depth advice on cruise itineraries and activities. The tool makes the agents more efficient because it understands the customer’s concern and suggests the right answer or recommends the perfect cruise in a matter of seconds. The bot is automatically answering 42% of customer service requests. Cruisebound is planning to test other AI-powered features in the near future.
Flexible payment options including installments and industry-first deferred deposits (i.e. $0 deposits) on select sailings.
Team of world-class support agents for customers wanting assistance. Although we are focused on online conversion, our team of agents is ready to answer any questions our customers may have. What we find however, is that most cruisers don’t want to talk to us and 83% of our reservations are completed without any customer assistance. This hybrid online/offline approach has struck a chord with customers, with 92% of reviewers on Trustpilot rating them 5 of 5 stars.
What market does Cruisebound target and how big is it?According to Cruise Market Watch, Cruise industry is expected to reach $66B in revenue by the end of 2024. 2023 cruise passenger volume reached 31.7 million— surpassing 2019 by 7%. The number of new-to-cruise is increasing – 27% of cruisers over the past two years are new-to-cruise, an increase of 12% over the past year.
What’s your business model?Cruisebound makes money from booking commissions.
How has the business and cruise industry changed since we last spoke at your launch in 2023?Over the past two years, Cruisebound enjoyed triple-digit annual revenue growth, making it one of the world’s fastest-growing national cruise agencies. We continue to add new partners and inventory. Today, Cruisebound offers 27,000+ cruise itineraries, from 19 of the top cruise lines. We are also focused on improving the product by simplifying the booking process, and working relentlessly to offer the best possible deal to our customers.
What was the funding process like?A lot of companies are competing for funding right now, and VCs seem to focus on fundamentals like path to profitability. We focused on the progress we’ve made over the past 2 years, including customer growth, financial growth, and our planned sustainable growth moving forward.
What are the biggest challenges that you faced while raising capital?The fundraising environment is still recovering from the shock it experienced ~2 years ago. There is capital to be invested out there, but investors have become more disciplined at deploying it. Our focus on driving sustainable growth with as little capital as possible resonated with investors.
What factors about your business led your investors to write the check?Our innovative approach to the cruise industry, the customers’ response to our product to date, and our track record of growth and improved unit economics since launching in January 2023.
What are the milestones you plan to achieve in the next six months?Q1 is Wave Season, the cruise industry’s busiest time for bookings, so our focus over the next six months is to help as many cruisers as possible book their dream vacation.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?Focus on execution, driving results, and remain conservative with capital. This will extend your runway and make your business more attractive for investors.
Where do you see the company going in the near term?We have a clear path to continue on our growth trajectory which will eventually help us to reach profitability.
What’s your favorite fall destination in and around the city?When I’m not boarding a Southbound cruise from one of our three cruise ports, I love to go to Beacon, NY. It’s an easy train ride from the city. There’s a lot to do in town and tons of hiking options around.
