On Friday, Bank of America (BofA) reported a slight decrease in pricing for ocean cruise markets, while noting that Alaska cruise prices have remained consistent. According to the firm's early June data, 40% of cruise itineraries saw a drop in prices compared to 33% in early May.
This is a significant improvement from the 60% of itineraries that experienced softer pricing in early March. Conversely, 32% of itineraries observed positive pricing growth, a decrease from 43% in the previous month, and 28% maintained steady prices, slightly up from 25% in May.
For the first time, Bofa included pricing data for Viking cruises, which displayed less fluctuation than larger ocean markets. Approximately 60% of Viking's itineraries had unchanged pricing sequentially. In a more detailed view, Alaska's cruise market showed exceptional resilience, with only a 1% sequential price decrease, underscoring a year-long trend of robust performance.
The pricing dynamics for cruise giants Carnival Corporation (NYSE:CCL) and Norwegian Cruise Line Holdings (NYSE:NYSE:NCLH) were positive, with increases of 5% and 4%, respectively. Royal Caribbean 's (NYSE:NYSE:RCL) strongest regional pricing was also noted in Alaska. Meanwhile, the European and Mediterranean cruise markets experienced a slight sequential decline in pricing, 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, aiming to enhance its guest capacity. The move will see the retirement of the P&O Cruises Australia brand and the rebranding of two of its ships under the Carnival Cruise Line.
Analysts at Melius Research recently expressed a positive outlook on the cruise industry, highlighting potential for margin expansion and balance sheet improvements. They suggested that stocks like Carnival Corporation may experience a re-rating as the companies continue to execute their strategies.
Carnival Corporation also completed a significant technology upgrade, outfitting its entire fleet with SpaceX's Starlink high-speed internet service, aiming to transform the connectivity experience for both guests and crew. Meanwhile, Carnival, along with other major cruise operators like Royal Caribbean and Norwegian Cruise Line Holdings, has offered discounts on summer voyages to fill cabins on older ships. The price reductions come as an increased number of vessels are set to cruise popular destinations like the Caribbean and Alaska.
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