After being forced by the COVID-19 pandemic to navigate very rough operational waters last year, the cruise industry rebounded this year and is expected to continue seeing high demand next year and beyond, thanks to the easing of travel restrictions and rising holiday travel demand. Therefore, Wall Street analysts expect cruise stocks Carnival (NYSE:CUK) Corporation (CCL) and Norwegian Cruise (NCLH) to rally 55% or more in price in the near term. So, let’s discuss.The vacation travel sector, which includes the cruise industry, suffered through a rough phase last year as cruise lines were docked for more than a year due to the COVID-19 pandemic and consequent travel restrictions. However, the easing of travel restrictions and cruise companies’ efforts to better serve their customers have helped the cruise industry rebound this year. Global revenue under the cruise segment is expected to grow at a 38.4% CAGR through2026.
The industry is expected to see a huge surge in bookings in 2022 and beyond. This is evidenced by Oceania’s world cruise for 2023, which was sold out within one day of opening for sale to the public. Also, river cruise operator Uniworld saw a 425% year-over-year increase in bookings to exotic destinations. According to a report by Cruise Industry News, there has been a fifteenfold year-over-year increase in ships that will be operating commercially this month.
Given this backdrop, we think it could be worth adding cruise stocks Carnival Corporation & plc (CCL) and Norwegian Cruise Line Holdings Ltd . (NYSE:NCLH) to ones watchlist. Wall Street analysts expect them to rally by more than 55% in price in the near term.