SINGAPORE: Singapore’s cruise sector is holding up better than expected despite rising fuel prices linked to the Middle East conflict, with operators adjusting routes and cutting costs while travel demand stays firm.

According to the Singapore Tourism Board (STB), international cruise arrivals into Singapore rose 10 per cent year-on-year in March 2026. The top source markets were Indonesia, China, and Malaysia, with passenger numbers from those countries also climbing.

While airlines are dealing with flight disruptions, higher fuel costs and route changes, cruise operators appear to have more room to adapt without heavily affecting travellers. Some companies are slowing sailing speeds to save fuel. Others are changing routes or scaling back promotions instead of sharply increasing prices.

For many Singapore-based travellers, cruises are also starting to look more predictable than overseas flights. Education consultant Kristabel Quek, 40, told Channel NewsAsia (CNA) she booked two cruises after the Middle East conflict began and didn’t notice major price jumps compared to earlier trips. She said flying now feels less certain due to fare increases and possible disruptions, while cruises remain easier for multi-generation family holidays.

That convenience matters in Singapore, where cruises have long appealed to retirees, families with children, and travellers looking for short regional getaways without the stress of airport transfers and packed itineraries.

Fuel costs are rising, but operators are absorbing part of the pressure

Cruise companies are still feeling the impact behind the scenes. Very low sulphur fuel oil, commonly used by cruise ships, reportedly jumped from around US$550 (S$697.84) per tonne in February to more than US$1,000 in March, according to fuel tracking platform Ship & Bunker. Prices remained elevated in May.

StarDream Cruises president Michael Goh said the company has introduced measures such as route optimisation, speed management and energy-saving efforts across its fleet. The company also imposed a S$15 fuel surcharge per passenger in March following the spike in fuel prices. Still, Mr Goh said the operator continues to offer promotions, including buy-one-get-one-free deals, to keep cruises attractive amid the current uncertainty.

Industry observers said cruise firms are handling the situation more quietly than airlines. Christopher Khoo, managing director of MasterConsult Services, said that fuel usually makes up 10% to 20% of cruise operating costs, lower than airlines, where fuel can account for up to 35%. That gives cruise operators more breathing room to manage volatility.

He added that operators often pass on costs indirectly through smaller promotions, fuel surcharges or pricier excursions instead of steep headline fare hikes.

Some cruise routes are changing

The conflict overseas has also forced some itinerary changes. Oceania Cruises said its Oceania Vista sailing from Singapore to Southampton will now avoid the Suez Canal and travel via Cape Town instead due to security concerns in the Gulf region.

Regent Seven Seas Cruises also changed one of its routes earlier this month, ending a sailing in Mumbai instead of Doha. For Singapore travellers, though, many Asia-focused cruises remain largely unaffected.

Mr Goh said StarDream Cruises continues to concentrate on Southeast Asia and East Asia routes, helping to reduce exposure to conflict-affected areas.

Asia could benefit from the disruption

Some tourism analysts believe the crisis may even shift more cruise business into Asia. Kevin Phun, director at the Centre for Responsible Tourism Singapore, said travellers may increasingly choose Asian cruise routes, seen as safer and more stable.

A Seatrade Cruise News industry poll found that 39% of travel agencies identified North and Southeast Asia as alternative cruise regions amid the ongoing conflict. The Singapore Tourism Board also said cruise lines are exploring more “Asia for Asia” deployments, in which ships remain stationed within the region rather than rotating globally.

That shift could benefit Singapore in the long run as the country already acts as a major regional cruise hub, backed by strong flight connections and steady demand from nearby markets. Cruise passenger numbers globally are projected to reach 42.1 million by 2029, up from 37.2 million in 2025, according to STB figures cited.

Frequent cruise passenger Mr Zheng, who booked a 2028 sailing earlier this year, said prices still felt reasonable despite the broader fuel situation. He described cruises as a simpler and more manageable option compared to traditional overseas holidays.

The bigger picture is that travellers are increasingly paying for certainty and convenience. When flights feel unpredictable and overseas costs keep shifting, many travellers appear willing to pay for something that feels organised, contained and easier to plan around.

Singapore’s cruise industry seems to understand that well, so instead of making dramatic changes, operators are making small adjustments while keeping the holiday experience mostly intact.

This article (Fuel prices soar, but Singapore’s cruise sector stays afloat with steady travel demand) first appeared on The Independent Singapore News.

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