World's most expensive cruises 2005

Bill Gates and Paul Allen did it together. So did Queen Beatrice of Holland and Enrique Iglesias. And in 2004, almost 11 million people worldwide did the same thing. Many did it two or three--or more--times.

What is it they did? They took a cruise.

Now, of course, in the case of billionaires, such as Gates and Allen, they didn't technically "cruise." Paul Allen has three yachts, the biggest of which, the 414-foot Octopus, is the second-largest yacht in America and has an onboard music studio, basketball court and personal submarine. (To read more about the world's most expensive yachts, click here.)

And while Allen may be considerably richer than most other affluent baby boomers, what they, as well as many younger travelers, share is a desire to vacation at sea--and to spend heavily, relatively speaking, to get the best.

For those without a yacht, a niche market of high-end cruise carriers, like Crystal Cruises, Silversea Cruises, Seabourn and Carnival Cruise Lines-owned (nyse: CCL - news - people ) Cunard, has emerged to cater to this growing--and very well-heeled--market.

"Vacationers today want choice," says Bob Dickinson, Miami-based Carnival's president and chief executive. "They want possibilities, in terms of activities, entertainment, sightseeing and service." By signing up for an expensive cruise, he explains, you're guaranteed "a level of clientèle that's just like you. You won't have anyone that's overreaching or being a social bumpkin. These cruises are self-delineating, based on the budgets. They attract fascinating people from all over the world; people who have become successful enough to have the time and money to go."

Just 30 years ago, a cruise ship didn't offer much more than a traditional land resort (and usually offered far less), unless you believe that there is a recreational aspect to mal-de-mer. It had a main lounge, a few bars, a restaurant resembling a high-school cafeteria and a gym below the water line with a rowing machine, dance bar and a few wrestling mats. Onboard casinos had a bank of slot machines and a roulette wheel, and the beauty parlor could give you a perm. Ships were technologically advanced enough to stay above water, but couldn't do much else.

Anchors away? Not exactly. Under a million people each year took cruises during the 1970s. But in 2004, nearly 11 million travelers around the world took a cruise, according to the Virginia-based International Council of Cruise Lines. Last year, the cruise industry generated $30 billion dollars--an increase of 18% over 2003. There are more cruise lines, cruise ships and itineraries available now than ever before.

But the industry may only grow by an estimated 5% in 2005, because demand for cruises is exceeding the supply of available cabins. In order to accommodate demand across the entire industry, new ships will need to be built, which will require capital commitments of approximately $1 billion for just two or three new ships from the cruise lines.

"I think the future of cruising is outstanding," says Carnival's Dickinson. "Today, cruising captures only 2% of the vacation market in this country. That's just 9.6 million people, while Las Vegas attracts over 37 million and Orlando is over 40 million. But cruising is capacity constrained. Our ships are full. If we wanted to be 6% of the market, we'd have to double the size of the fleet."

MORE FROM FORBES

Forbes Section Front

Dirtiest vehicles on America’s highways The worlds most powerful people The key to dealing with lousy boss: negotiation IRS rules for medical deductions are sickening Tailgate much? These are the rides you need What automakers have in store for 2010 Top-earning dead celebrity? Not Jackson Need to fire someone? Here’s what to do America’s highest-paid female CEOS Cars with the worst fuel economy Forbes Section Front