Confidence in cruises is growing among tourists – analysts
Travel consultants and analysts see new orders for megaliners from two of the world's largest cruise lines as a sign of confidence in cruising and a signal that normal shipbuilding rates may soon return.
The ships, one ordered by Carnival Corp. and the other by Royal Caribbean Group, are the first new orders from both companies after the pandemic, Travel Weekly writes.
The announcements of ship orders came one after another. Carnival Corp. on February 13 ordered the fourth Excel-class ship for Carnival Cruise Line in the spring of 2027. Two days later, Royal Caribbean Group announced an order for the seventh Oasis class ship from Royal Caribbean International, which is scheduled to debut in 2028.
Experts called it "incredible courage" of Carnival Corp. to place an order for the ship, despite the fact that it has tripled its debt load to survive the pandemic and is now working to pay it off.
It is noted that the delivery order is also a psychological incentive for those in the industry, including advisors and investors, to communicate that the company will not be shackled by debt, he said.
Carnival Corp. has been cautious about shipbuilding since the pandemic, working to rebuild its balance sheet. The company's debt before the pandemic was about $10 billion, and by the end of 2022, it had grown to more than $30 billion. In response, the company has the smallest order book in recent years, said Josh Weinstein, CEO of Carnival Corp.
Analysts expected both Carnival Corp. and Royal Caribbean Group to place orders for ships this year. One of these analysts was Robin Farley of UBS, who believes that Carnival Corp.'s order reflects the short-term reality and the company's long-term strategy.
As TravelWise wrote, Carnival Cruise Line offers travel on Carnival Venezia. It recently underwent a modernization before leaving New York.