On Friday, Bank of America (BofA) reported a slight decline in prices in the ocean cruise markets, although it noted that Alaska cruise prices have remained constant. According to the firm’s data from early June, 40% of cruise itineraries experienced a price drop compared to 33% in early May.
This is a significant improvement over the 60% of itineraries that experienced lower prices in early March. In contrast, 32% of itineraries saw positive price growth, down from 43% in the previous month, and 28% kept prices stable, slightly up from 25% in May.
For the first time, Bofa included pricing data from Viking cruises, which showed less fluctuations than larger ocean markets. Approximately 60% of Viking itineraries had unchanged pricing sequentially. Taking a closer look, the Alaska cruise market showed exceptional resilience, with only a 1% sequential price decline, underscoring a trend of a year of strong performance.
Price dynamics for cruise giants Carnival Corporation (NYSE:) and Norwegian Cruise Line Holdings (NYSE:NYSE:) were positive, with increases of 5% and 4%, respectively. Royal Caribbean’s (NYSE:NYSE:) strongest regional pricing was also seen in Alaska. Meanwhile, European and Mediterranean cruise markets saw a slight sequential drop in prices, following an increase in the previous month.
In other recent news, Carnival Corporation announced it will integrate P&O Cruises Australia into Carnival Cruise Line by March 2025, with the aim of improving its guest capacity. The move will see the retirement of the P&O Cruises Australia brand and the renaming of two of its ships to Carnival Cruise Line.
Melius Research analysts recently expressed a positive outlook on the cruise industry, highlighting the potential for margin expansion and balance sheet improvements. They suggested that stocks like Carnival Corporation may experience a rerating as the companies continue to execute their strategies.
Carnival Corporation also completed a major technology upgrade, equipping its entire fleet with SpaceX’s Starlink high-speed Internet service, with the goal of transforming the connectivity experience for both guests and crew. Meanwhile, Carnival, along with other major cruise operators such as Royal Caribbean and Norwegian Cruise Line Holdings, has offered discounts on summer voyages to fill cabins on older ships. The price reductions come as more vessels will sail to popular destinations such as the Caribbean and Alaska.
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