The cruise industry was severely hurt by the novel coronavirus pandemic after multiple ships were quarantined at sea for extended periods of time, leading to a halt of new departures and cancelled bookings. While ships have been anchored there has been tremendous uncertainty about the cruise industry’s viability in terms of liquidity and practicality, since many ships rely on circulated air and can not easily accommodate social distancing protocols.
Consensus estimates at the moment still reflect a long road to recovery, with only Royal Caribbean and Norwegian Cruise Lines fully recovering sales by 2023. However, we should note that the majority of analysts have yet to revise estimates since May.
In light of recent CDC guidance on industry protocols and a lifting of the “no sail order” next month, cruise liners are expected to slowly resume voyages on limited schedules. Pent-up consumer demand for traveling along with a diminishing fear to travel may have contributed to reportedly strong future bookings at the major cruise lines. In May, Royal Caribbean and Norwegian both stated that 2021 booking volumes appear to be in line with historical ranges. Analysts are currently forecasting 87-92% room occupancy in 2021, according to Visible Alpha.
Learn more about the ongoing revisions across every sector here.
This content was created using Visible Alpha Insights.
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