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Analyst Note: Caribbean Cruise Pricing Continues Upward Notes

September 12, 2007 By: David Eisen Travel Agent

Caribbean cruise pricing is maintaining a "positive, improving trend," writes Tim Conder, a cruise industry analyst with A.G. Edwards. According to Conder, Carnival's Caribbean pricing is up to the low double digits while Royal Caribbean is seeing single-digit growth. While Caribbean pricing improves, Conder notes that Europe continues to be the strongest geographic market with year-over-year pricing up in the fourth quarter. However, while many investors are concerned that European pricing will come under pressure because of the success of this year and last, Conder writes that "while we expect year-over-year pricing and yield growth to slow due to these factors, we also feel that pricing yields will be up year-over-year barring a sharp economic slowdown in Europe or the U.S."

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