Analyst Bullish on Cruise Industry

The cruise industry is poised for smooth sailing according to Michael Savner, an analyst for Bank of America, as he initiated Royal Caribbean Cruises and Carnival Corp. coverage on Tuesday. "We are bullish on the cruise industry, based on recent signs of improvement we have observed," he said. "There is still healthy consumer demand for cruises, and we expect that further capacity expansion outside the Caribbean over the next few years could help offset a weak Caribbean market and drive incremental growth." Savner tagged both cruise operators with "Buy" ratings, based on Carnival's deep brand portfolio and Royal Caribbean's new revenue opportunities through its acquisition of Spain-based cruise and tour operator Pullmantur S.A.

Read more on:

Suggested Articles:

Seabourn celebrated the "first steel cutting" for its second ultra-luxury expedition ship, slated for delivery in 2022. Here's what guests can…

Coral Expeditions will restart cruises for Australian guests on October 14. Coral Discoverer will sail Great Barrier Reef cruises from Cairns.

Riviera River Cruises plans a webinar for travel advisors on September 23. The line will discuss a new itinerary, dining options, promotions and more.