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Analyst Warns of Weakening Cruise DemandOctober 1, 2007 By: Travel Agent Central Contributor Travel Agent
A Goldman Sachs analyst has expressed concern over the cruise industry estimating that fuel prices will increase amid souring consumer demand. Steven Kent said Goldman's energy team estimates that cruise oil prices will climb about 19 percent next year and another 13 percent in 2009. Kent also cautioned that consumer demand for cruises could dwindle, citing flattish net revenue yield growth and the absorption of new supply. In a client note, Kent said that a large buildup over the past few years will threaten pricing. (DE)