As Cruise Travel Hits Record High, Norwegian, Royal Caribbean and Carnival …
A new report released this week by CLIA, the largest cruise industry trade association, showed that the number of American’s embarking on cruises is at a record high. Driven by larger capacity, new builds and new on-board and on-shore activities, this trend in increased cruising shows no signs of slowing.
Also driving traffic is an increase in the number of ships being built, with a total of 17 new cruise ships being added from 2015 to 2016. These additions are expected to add $3.6 billion in annual revenues to the cruise industry.
All three U. S. stocks that focus on cruising look very attractive right now; however, the company with the strongest earnings and sales is Miami-based Norwegian Cruise Line (NCLH – Get Report) . Due to report earnings later this month, analysts have been revising estimates upward as the company has produced an increase in year-over-year revenues in excess of 40% for the last two quarters.
Norwegian is known for providing the broadest range of cruising experiences ranging from high-end, all suite luxury boats to more casual experiences known as “freestyling” where guests can dine at will and attire is more casual. With the company’s announcement last week that it will be entering the Chinese cruise market in 2017, it will be introducing the first modern boat that will cater entirely to that market’s tastes.
Must Read: Carnival Plans a Bigger Splash in China with More Ships, Lines
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