Posted on 06/16/2022 9:36:20 AM PDT by Capt. Tom
Cruise stocks were tumbling to their lowest point since 2020 on Thursday as fears intensified over rising inflation and a potential recession.
Fueling the selloff were concerns that consumers will be curbing discretionary spending in response to rising prices and economic uncertainty. There’s also an uptick in Covid-19 cases that may be increasing consumer reluctance to hop on a cruise. The seven-day moving average for known Covid-19 cases has hovered around 100,000, according to the Centers for Disease Control and Prevention, and likely is higher amid an increased reliance on at-home testing kits that don’t get reported to public officials.
Already, cruise lines have experienced pricing declines from May to June, indicating that bookings may be eroding, according to early June data from Bank of America Securities. BofA analyst Andrew Didora views the slowdown as “more specific to the cruise industry than a larger read to the leisure consumer,” given further Covid-19 pressures, ongoing pushes to ramp up capacity, and difficulty attracting consumers who are new to cruising.
Didora said he expects further pricing weakness ahead for 2023 and 2024, with prices declining 2.6%, on average, for all three major cruise lines.
“Cruise lines have been at the center of the pandemic, and the profit recovery continues to be delayed given the different variants,” Didora wrote. “This is happening at a time when the market is already factoring in a strong recovery. Given that the industry has taken on considerable amounts of debt in the past year, a long road ahead remains to de-lever and return to pre-pandemic balance sheets.”
That could be even more challenging if the economy plunges into a recession, which is becoming even more likely as the Federal Reserve moves to increase interest rates at a faster-than-expected pace.
(Excerpt) Read more at barrons.com ...
The cruise ship industry won’t be so lucky because the vessels are all foreign flagged, and none of them are built in the U.S.
That makes even more sense than my comment. Thanks!
The air lines can get bailouts from different Governments, and they have done that in the past.
The cruise lines can get bailouts from the countries they are flagged in, but only one of the big cruise ships is flagged in this country.
The rest of the cruise ships are at the mercy of he foreign countries they are flagged in, and many won't bail them out. -Tom
Fully vaxxed and still have outbreaks of covid-1984. I also wonder how many of the foreign staff have fake vax papers.
olivia3boys wrote: “I was planning to go on a group river cruise in France this past Spring, but the organizer/leader in our group declined the vax (when we first planned the trip there was no vax requirement) and so the entire trip was called off and the cruise line refunded our deposits (since they changed the rules after we deposited).”
Was that requirement established by the cruise line or by ports involved?
BTW, I recently heard of a cruise line that imposed a mask mandate the day before embarkation. No refunds were offered.
A mask mandate is a definite ‘no go’ for me although if you spend some time on Cruise Critic you will find many who prefer mask requirements.
Jane Long wrote: “Nope. Just Ye Olde $hift Working $hot $hills, Dugway.”
You always have so much to offer.
Hubby and I are going to Alaska for our 30th next month, only we are flying to Anchorage, and then renting an RV for ten days. No way I’m getting the shot for a cruise. Nothing but giant floating petri dishes. No thanks.
I read comments on FB cruise pages everyday & a lot of people are put in quarantine on the ship when they test positive. Apparently there are decks devoted to people with Covid. If they’re in a foreign country, they are sent to a hotel to further quarantine until they’re able to fly back to the US.
The problem with your cruise suggestion is it will likely cost too much money. If you convert a cruise ship into an apartment complex, you have to acquire parking spaces, electrical hookups, and build a new dock capable of handling the vessel for a permeant mooring. If it is in hurricane territory, the concept is a non-starter..
Much more than you, that is for sure.
What time is clock out, for your $hift, today?
I used to go on 1-2 cruises a year and that’s over now. I won’t be going back until I can just get on a ship and relax. If I have to take a test to get on the ship, test at every port, wear a mask all the time, and have to act like I’m in quarantine then that’s not a vacation.
Until this nonsense is over there’s no way in hell I’ll pay good money to be treated like a prison inmate.
“I’ve seen/heard very few complaints about requiring vaccination to board a cruise ship.”
I’m not complaining. I’m also not getting on a cruise ship and they’re not getting the $20k to $30k I used to spend on them every year. Screw them.
Daughter and her boyfriend signed up for an Alaskan cruise. It seems each day they receive updates about activities/excursions being canceled. At this point they regret their decision to sign up for the cruise.
The ships are at better than 90% capacity right now. So the vaccination doesn’t seem to be bothering many people.
What is gonna get them is the rising cost of food and fuel.
Simple, the answer is Bidenflation.
Couldn’t pay me to go on a cruise ship with all the viruses and parasites floating around.
Let me lodge one. Wife and I want to take a cruise but won’t take the clot shot to get on the boat. I know plenty of other people who took the initial jabs but have wizened up and won’t take a “booster.” Also most line require 12yo and up to be jabbed. Cruises may get the old timers (who probably should take the shot) but they are losing plenty of families with the policy.
👍🏼
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