The Pent Up Demand For The Cruise Ships Is Real

Carnival is the largest cruise company in the world, with more than 100 ships on the seas that attract over 12 million travelers each year across brands.

Back in July of last year the CEO of Carnival, Arnold Donald said that the company was continuing to see demand for new bookings for 2021. Of those bookings nearly 60% were new and the majority of customer deposits were from previously canceled bookings.

Cruise ship stocks climbed on Monday as declining COVID-19 case counts gave investors hope that the beleaguered industry could begin to recover in the coming months.

And if promising vaccines from the likes of Pfizer and Moderna can help to bring about the end of the pandemic, the major cruise lines could see their businesses begin to recover sooner than many investors currently expect.

Royal Caribbean generated almost 10% of its revenue from China. A year ago, Royal Caribbean immediately cancelled three of their China based cruise liner trips as the world took notice to COVID-19 breaking out in China.

Royal Caribbean quickly cancelled cruise trips and said the cancellation would cut into their earnings by $0.10 / share and it would take an additional 10-cent hit if travel restrictions in China continued until the end of February.

However, this February it’s a different story. We now have a vaccine the cruise ship companies have raised the necessary capital to stay afloat and people are running toward and not away from the cruise ships.

Video Source:https://www.youtube.com/c/CNBCtelevision/videos

Posted Using LeoFinance ^Beta