Cruise line stocks surged on Thursday along with the market which went up on better-than-expected inflation reports.
Carnival Corporation saw its shares soar 14.3 per cent, closing at $9.78, compared to a 52-week low-high of $6.11 to $23.86.
Royal Caribbean saw a 9.9 per cent rise to $57.72 from a 52-week range from $31.09 to $90.55.
Norwegian Cruise Line Holdings rose 8.2 per cent to $17.09, compared to a 52-week low-high of $10.31 to $27.05
Lindblad Expeditions rose 6.5 per cent to $10.55 compared to a 52-week low-high of $5.91 to $19.13.
The Dow Jones Industrial Average had surged more than 1,000 points or more than 3% on the news that the October’s consumer price index rose only 0.4 per cent for the month and is up 7.7% from a year ago. It is the lowest monthly increase since January.
Royal Caribbean Group’s new cruise terminal in the Port of Galveston is officially open, with a ribbon-cutting ceremony held at the new facility on Wednesday morning with the Allure of the Seas docked in the port.
Marking the arrival of the Oasis class to Texas, the vessel departed from its new homeport for the first time on Wednesday afternoon.
Launching a series of Western Caribbean cruises departing from Galveston, the Royal Caribbean International ship is sailing on a promotional short cruise before kicking off a schedule of week-long cruises to Mexico and Honduras next Sunday.
The program features a regular itinerary that includes visits to Cozumel, Costa Maya and Roatán.
One of the world’s largest cruise ships, the Allure of the Seas has a capacity for over 5,400 guests.
Following the Oasis of the Seas, the 220,000-ton vessel introduced a groundbreaking design that is highlighted by features such as Central Park, a park with real plants, surrounded by shops and restaurants.
The 2010-built vessel also has its public areas divided in seven different neighbourhoods, each one of them having a different appeal. The BoardWalk, for instance, was inspired by a seaside pier and features a carousel, and carnival games, in addition to retail outlets and eateries.
With its new terminal in Galveston, the Royal Caribbean Group will be able to accommodate up to 630,000 guests in the port per year.
The $125 million project saw construction started in 2021 and is a collaboration between Royal Caribbean International, Ceres Terminal Holdings, LLC and Galveston Wharves.
In addition to the Allure, a second Royal Caribbean International vessel, the Adventure of the Seas, is set to offer cruises from Galveston during the 2022-2023 season.
In November 2023, the Harmony of the Seas is set to take over Allure’s program, offering similar week-long itineraries in the region.
Jason Liberty, President and CEO of the Royal Caribbean Group, shared some insight on the company’s deployment and sourcing plans for the upcoming year.
Speaking on Thursday’s third-quarter earnings call, he revealed hopes for a return to normality in 2023, focusing on a strong U.S. market.
“While we are still early in our planning cycle, 2023 is shaping up to be a strong year for the company and in the return to normal, typical business,” Liberty said.
“Our overall capacity will grow 14 per cent compared to 2019 on account of ten new ships which have joined or will join the fleet across our brands during this period,” he added, noting that the growth will be achieved despite previous ship disposals.
Liberty also said that deployment across markets is “relatively unchanged” compared to 2019 with the Caribbean representing just over half of the overall deployment and Europe with almost 20 per cent.
“Asia is in the low single digits, with no planned deployment in the high-yielding China market,” he said.
About 18 per cent of the U.S. population is within driving distance to a U.S. homeport, Liberty added, with the “Short Caribbean” product upsized by 35 per cent compared to 2019.
Perfect Day at CocoCay has also been an important part of the deployment, with 65 per cent of the guests sailing on Royal Caribbean International’s Caribbean itineraries in 2023 set to visit the private destination in the Bahamas. The number of calls is up 30 per cent from 2019, he said.
“We expect almost 80 per cent of 2023 guest sourcing to come from North America as we continue to see particularly strong demand from that customer,” Liberty said.
Royal Caribbean’s multi-brand strategy also allows for efficient guest sourcing around the world, he added.
“Our global brands’ appeal and nimble source model allows us to attract the highest yielding guest and partially mitigate the impact from a strong dollar.”
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