Americans are cruising again—and at record levels.
carnival, Norway and royal caribbean Individual bookings and cruise pricing have both hit record highs heading into the year, according to reports.
When the coronavirus outbreak broke out in the United States in March 2020, the U.S. Centers for Disease Control and Prevention issued a no-sail order, essentially shutting down the industry for 15 months, an impressive turnaround.
Royal Caribbean has always been at the forefront. Compared with 2019, its ticket revenue growth was the highest among the three cruise giants. Last month, its shares surpassed their pre-pandemic highs. Carnival and Norwegian Cruise Line’s volumes are both down more than 50% from 2019 levels.
“The number one reason why Royal Caribbean is outperforming its peers and recovering fastest is that they issued the least amount of stock during the pandemic. All companies have to issue stock… all companies have to issue convertible debt, and Royal Caribbean was able to leverage managing its cash position with minimal equity,” said Brent Montour, senior equity research analyst at Barclays.
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