Americans are traveling again — and at record-breaking levels.
Carnival, Norway And Royal Caribbean All reported entering the year with record individual bookings and cruise prices.
This is an impressive turnaround after the industry was largely shut down for 15 months after the Centers for Disease Control and Prevention issued a no-sale order at the start of the Covid pandemic in the US in March 2020.
And Royal Caribbean is leading the way. Among the big three cruise giants, 2019 saw the highest increase in ticket revenue. And last month, its share price surpassed pre-pandemic highs. Both Carnival and Norwegian trade more than 50% lower than their 2019 levels.
“The No. 1 reason Royal Caribbean has outperformed its peers and recovered the fastest is because it issued the least amount of equity during the pandemic,” Barclays’ senior equity research analyst said. Royal Caribbean was able to manage its cash position in a way that used minimal equity, said Brent Montour.
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Credit : www.cnbc.com
