Three cruise operators with the wind at their backs

These companies have multiple trends working in their favour, and they are trading at attractive discounts.

Vikram Barhat 30 May, 2018 | 5:00PM
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As the summer months approach, families and individual vacationers are furiously planning their next getaway for a much-needed break from the daily grind. A record number of these people, both first timers and seasoned seafarers, are expected to go on a cruise holiday, as per the Cruise Lines International Association (CLIA). It's little surprise that the outlook for the global cruise industry is brighter than ever before.

Long considered a happy hunting ground for North American retirees, the cruise liners today are carrying a highly diverse clientele from a much wider geographic footprint, including a rocketing number of Asian middle-class and millennial holidaymakers. With passengers from China alone far exceeding 2 million, making it the second-largest market after the U.S., the cruise industry clocked more than 26 million people who took cruises in 2017, and is projected to surpass 28 million in 2018, according to the CLIA report.

As more consumers choose the thrill of experiences over the gratification of material acquisitions, they are happy to splurge on memorable vacations. The trend conspires with favourable economic conditions and greater interest in ocean cruising, which has jumped more than 20% over the last five years, to create a tailwind for the industry, says the CLIA report.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Carnival Corp17.20 USD-3.86Rating
Norwegian Cruise Line Holdings Ltd18.29 USD-4.54Rating
Royal Caribbean Group66.76 USD-3.08Rating

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.

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