Americans are back to cruising at record-breaking levels, with Carnival, Norwegian, and Royal Caribbean reporting record highs for individual bookings and cruise pricing. This marks a significant turnaround after a 15-month halt due to the CDC’s no-sail order at the start of the Covid pandemic in the U.S.
Royal Caribbean has been leading the recovery, with the highest ticket revenue increase compared to 2019 among the big three cruise companies. While Royal Caribbean’s share price has surpassed its pre-pandemic levels, Carnival and Norwegian are still trading more than 50% lower than their 2019 levels.
According to Barclays senior equity research analyst Brandt Montour, Royal Caribbean’s success can be attributed to issuing the least amount of equity during the pandemic compared to its competitors. This enabled the company to manage its cash position more effectively and recover faster.
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Americans are returning to cruising in record numbers, with Carnival, Norwegian, and Royal Caribbean all reporting record highs in individual bookings and cruise pricing at the beginning of the year. This is a significant rebound for the industry, which was largely shut down for 15 months due to the CDC’s no-sail order issued in March 2020 amidst the Covid pandemic in the U.S.
Royal Caribbean has been leading the way in this recovery, with the highest increase in ticket revenue compared to 2019 out of the three major cruise companies. Last month, its share price even surpassed its pre-pandemic high, while Carnival and Norwegian are still trading at over 50% lower than their 2019 levels.
Barclays senior equity research analyst Brandt Montour believes that Royal Caribbean’s success in recovering quickly is due to issuing the least amount of equity during the pandemic compared to its competitors. While all companies had to issue equity and convertible debt, Royal Caribbean managed its cash position in a way that required less equity, enabling it to recover faster.
Overall, the cruise industry is seeing a strong rebound as Americans are eager to return to cruising after being sidelined for over a year. Royal Caribbean’s success in recovering quickly and outperforming its peers reflects its strategic financial management during the pandemic.
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