MarketsApr 11, 2024
Cruise Stocks Have Rallied From Their Pandemic Lows — And One Company Is Going Public To Get A Piece of the Action
Leisure Boom
Noah Weidner
Discover
After a chaotic pandemic for cruise companies, the choppy waters appear to be subsiding — and Americans are setting sail again. Last year, 31.7M passengers boarded cruises from ports, surpassing pre-Covid levels. And with demand floating up, one cruise company is testing the waters on Wall Street.
Voyaging to markets: Conde Nast readers named Viking the top cruise company for oceans, rivers, and expeditions. While most people are familiar with ocean cruises, specialty river and expedition cruises have become a hit, and tourists are looking for more scenic ports of call. Viking saw 51% of its 650K guests last year returning for more. The company hopes to use that brand loyalty as it approaches its biggest dock yet — the New York Stock Exchange, where it has filed to go public and could fetch a $10B valuation.
Viking isn’t the only company riding the wave of post-Covid cruising demand. Carnival, Royal Caribbean, and Norwegian Cruise Line have been riding high as bookings bounce back. With cruises making up just 1.5-2% of the total travel market, companies are banking on growth through larger ships and more orders.
Forward-looking: Cruise Industry News predicts that 14 new cruise ships will hit the seas in 2024 — just in time for a 12.6% passenger increase this year forecasted by the Cruise Line International Association. Fresh competition in the cruise market, like Virgin Cruises, is shaking things up with all-inclusive fares and subscription models targeting chronic cruisers.
