The Norwegian pearl cruise ship anchored offshore on January 7, 2022 in Miami Beach, Florida.
Joe Raedle | Getty Images
The cruise industry is looking for the rough seas to come when it comes to consumer trust and travel budgets.
for example, Norway Cruise Line Holdings It reports “chops” of cruises booked from the US to Europe in the third quarter.
“In fact, I booked really, really well, about a month or two ago, and American consumers seemed a bit thin about traveling far away,” CEO Harry Somer told CNBC on Wednesday.
Norwegian stocks fell more than 7% on Wednesday, following its first-quarter earnings report.
According to an average estimate compiled by LSEG, revenue for the first quarter was just $2.13 billion, a mere $2.13 billion compared to an estimate of $2.15 billion, adjusting 7 cents to its nine-cent forecast.
The company has changed its guidance on net yield growth from 1% to 2% to 3%, saying this year’s revenues are likely to put pressure on them. However, Norwegians maintained guidance on previous earnings in interest, taxes, depreciation, amortization, or EBITDA, maintained adjusted earnings per share, and predicted cost reductions through more favorable foreign currency charges and lower fuel prices.
Despite the pressure, Summer reiterated the widely embraced view of the cruise industry that the value of these holidays via land holidays makes travelers increasingly look to in times of economic turmoil.
Royal Caribbean CEO Jason Liberty said on Tuesday that he was “not affected by macro volatility” in the company’s first quarter revenue call.
“But what we see on the ground is real-time spending on bookings and ships, and consumers are still prioritizing the experience, planning to spend more than this year, and wanting to be worthy of our offering,” Liberty said.
The company said 86% have been booked by the end of 2025.
Royal Caribbean raised guidance for the year and reported results that beat Wall Street’s expectations. However, its stocks also fell on Wednesday, with about 6% off per year.
Norwegian stocks have been 37% off to date Carnival Cruise Line This year, the company has dropped 26% so far, but surpassed the company’s own guidance despite record-breaking first quarter results announced in March.
The Norwegian said spending on board remained stable in April and was seen to “return to normal.”
“You know, you may have a weak month, a weak quarter, but consumers continue to take leave,” Summer said. “It’s one of their God-given rights, they enjoy them, and they’ll come back.”
