Three cruise operators that are charging full steam ahead

These companies are expanding beyond their traditional markets like the Caribbean, to court burgeoning Asian markets.

Vikram Barhat 10 May, 2017 | 5:00PM

It's the time of year when people in the northern hemisphere start planning their annual summer getaway. A large number of these travellers are expected to go on cruise vacations, a fast-growing constituent of the US$2 trillion global travel market.

Responding swiftly to this growing demand, the global cruise industry has dropped US$6.8 billion to buy 26 new oceans vessels in 2017, according to a recent report from the Cruise Lines International Association (CLIA). More than 25 million passengers are projected by the report to go on cruises this year, up by two million from 2015.

The demand and focus continues to improve in Asia and Europe, even though revenue and passengers for the global cruise industry remain highly concentrated in North America, especially the United States, which is projected to grow from US$23 billion in 2015 to more than US$31 billion in 2020. The S&P 500 Hotels, Resorts and Cruise Lines sub-index has climbed 14.23% year-to-date, compared to a more modest 4.9% gains for the S&P 500 index, as of April 21.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Carnival Corp20.22 USD-2.51
Norwegian Cruise Line Holdings Ltd24.59 USD-1.60
Royal Caribbean Group71.96 USD-0.96

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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