BUZZ-Cruise stocks advance as demand strengthens

Reuters2024-12-31

** Shares of cruise operators Royal Caribbean , Carnival and Norwegian Cruise Line Holdings up ~80%, 35% and 28% this year, respectively

** RCL and NCLH have raised their annual forecasts multiple times this year, while CCL forecast strong bookings for 2025 earlier this month

** Cos have benefited from strength in demand for cruise vacations, as well as plenty of room to continue raising prices to bridge the gap with land-based vacations

** Momentum expected to continue in 2025, helped by growth in new-to-cruise passengers and demand materially outpacing supply to drive pricing power - Goldman Sachs

** With pent-up demand long gone, we turn our focus to idiosyncratic drivers of pricing power such as new private islands and ship launches in cruise - Goldman Sachs

** YTD, the S&P 500 Hotels, Restaurants & Leisure index

has risen 14% compared with a 23.8% rise in the S&P 500 index

(Reporting by Juveria Tabassum in Bengaluru)

((Juveria.Tabassum@thomsonreuters.com;))

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