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 ...
I wonder how long their creditors can wait to be reimbursed? Or will some of them bolt, and force a bankruptcy.- Tom
Largest cruise ship in the world crashes into a Pier and the rest follow
Gotta get a shot to get on a cruise ship......I think I se the problem
Can’t they just dock the boats at various ports and rent out the rooms for people to live in? Like an enormous apartment complex? At least they can get some of their money back that way.
I’m honestly surprised they lasted through the pandemic nonsense. Airlines survived because a lot of folks have to fly.
Easy credit by “too big to fail” lenders can kick the can down the road for a long time....
When it is time to refinance at higher rates is when the party ends.
I am so tired of this excuse from yesterday's panic.
No doubt that is a part of the immediate problem.
It also will tick off a certain amount of unvaccinated cruisers from ever going back to cruising. -Tom
My wife and I were thinking about doing an Alaskan cruise for our 25th anniversary, but every stinking cruise line mandates that you be “fully vaccinated.”
That means there is a 0% chance of us getting on your ships. I guarantee you there are lots of other potential customers like us.
I’ve seen/heard very few complaints about requiring vaccination to board a cruise ship. Most passengers are olde and more vulnerable, therefore they prefer cruises where vaccinations are required.
[I wonder how long their creditors can wait to be reimbursed? Or will some of them bolt, and force a bankruptcy.- Tom]
Yep....first the absurd $hots requirement, now...folks have no discretionary funds to spend...on cruises.
The industry is sinking like the Titanic, unfortunately.
I guess some folks will have to be doing their own cooking and cleaning.
The huge manatee.
I would say you are exactly right.
Most passengers are olde and more vulnerable, therefore they prefer cruises where vaccinations are required.
Nope. Just Ye Olde $hift Working $hot $hills, Dugway.
It just seems like the cruise and airline industries are always looking for a bailout.
“I’ve seen/heard very few complaints about requiring vaccination to board a cruise ship”
You can add me to the list of complainers.
To add to my previous comment, we were all set to go on an Alaskan cruise in May 2020 to celebrate retirement, but Covid hysteria put an end to that, and we were able to get a refund.
We enjoy going on a cruise every so often, so we are returning customers, but we will NOT return until all stupid Covid mandates are gone.
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).
“a certain amount of unvaccinated cruisers from ever going back to cruising”
Mrs V_TWIN and I are both proudly still pure bloods and we would definitely consider another cruise...but not at the expense of getting a little tested experimental treatment to fight a virus I have a 99.8% chance of surviving anyway.....that would be just plain stupid.
My wife and I, even though we have had it and can document antibodies.
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