There doesn't seem to be much of a downside for Booking.com getting into cruises. As with flights, which it launched in 2019, we can only say — what took you so long?
Royal Caribbean will be one of the first Western travel brands to return to China. The fact that bookings look healthy there point to strong cruise demand in the country.
While consumer spending was key for Royal Caribbean's first quarter, demand across the board has led the company to its highest-ever revenue in the second quarter.
Royal Caribbean is sailing along on several trends —strong economic conditions, travel interest in experiences and pent-up demand— to get out of the red.
Cruise lines will continue to debut new ships in the near term through a balancing act between refinancing debt and improving profit margins. The high cost of debt will not stop vessels from sailing. The three major cruise lines remain optimistic for demand recovery.
Royal Caribbean seems confident it's smooth sailing now that the pandemic is over and passengers are ready to spend their savings on cruise experiences. But a potential recession could mess with all that.