Cruise bookings are slowing while prices continue to rise: raising the question of the near-term strength of the industry.
Some experts are seeing mixed signals.
Echoing recent comments by executives at Miami-based Carnival Corp., a monthly cruise-industry survey by investment firm Susquehanna Financial Group finds that bookings are beginning to slow but prices continue to rise.
It’s a pair of decidedly mixed signals about the strength of the cruise industry.
Analysts Brian Dobson and Robert LaFleur of the Susquehanna Financial Group write:
“The big question is whether this observation is a function of less inventory left to sell — recall that both CCL [Carnival] and RCL [Royal Caribbean Cruises Ltd.] have been touting higher booked load factors this year compared to last — or something more sinister. We suspect it is a little of both.â€
They added:
“Declining consumer sentiment (backed up by some of our travel agent commentary) is definitely having a negative impact on booking. What we are not seeing is a freefall in demand. Were that the case, we would see a commensurate collapse in pricing, as worried cruise lines begin to slash prices in order to fill the ships.”
Report by David Wilkening
