Three cruise line stocks set to sail higher

These names are trading at a discount, at a time when the global cruise industry revenue is forecasted to jump US$57 billion in 2027

Vikram Barhat 24 April, 2019 | 5:00PM
Facebook Twitter LinkedIn

With an exceptionally long and cold winter behind us, many Canadian holidaymakers are planning their annual summer break as they look forward to sunny days and a break from the grind. As every year, a sizable segment of these travelers will be hitting the high seas aboard a cruise liner. Long driven by the Baby Boomer cohort, ocean cruising is increasingly getting transformed by a younger demography seeking experiential travel and bucket-list vacations.

The cruise industry is projected to continue to grow throughout 2019 with 30 million travelers expected to go on cruise, up 6% from 28.2 million in 2018, according to a recent report from the Cruise Lines International Association (CLIA). While the Caribbean and Mediterranean account for half of all cruise itineraries, a growing number of destinations are being added from other parts of the world, including China which accounts for the second largest number of cruise passengers globally after the U.S. As a result, the global cruise industry revenue is forecasted to jump from US$35.5 billion in 2016 to US$57 billion in 2027, reports data aggregator Statista.

As more travelers splurge on cruise vacations, they create a growth tailwind for cruise operators that are responding to demand growth with new destinations, diverse durations and more attractions. The leading players are expanding their fleet, creating and customizing itineraries, on-deck activities and dining options keeping a more diverse pool of customers in focus. Many of these operators are also casting their net beyond their conventional markets to burgeoning but under-served parts of the world, according to Morningstar equity research.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free
Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Carnival Corp22.29 USD-0.18Rating
Norwegian Cruise Line Holdings Ltd25.48 USD-0.08Rating
Royal Caribbean Group84.63 USD1.07Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy