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| Above, the Norwegian Sky docked at Nassau, Bahamas. Photo by Armand Vaquer. |
Are cruise demands softening? According to an article posted at MSN, it appears to be the case.
They wrote:
(Bloomberg) -- Norwegian Cruise Line Holdings Ltd. broke with its cruise peers by warning that cruise demand, which has long defied worrying travel trends, is beginning to weaken.
The cruise operator saw “softening” in its 12-month forward bookings, though maintains ticket sales are within the “optimal range, even amid ongoing macroeconomic volatility,” according to a statement Wednesday. Despite that, the company maintained its full-year targets.
“While we recognize there may be potential pressures on the top line, we believe these can be effectively offset by the continued execution of our cost savings initiatives,” Chief Executive Officer Harry Sommer said in the statement.
Shares dropped as much as 20% in premarket trading.
The thing (after reading this) that first came to mind is that several cruise lines have cancelled cruises even after tickets were purchased by people. People reading stories about cruises being cancelled may have dissuaded them from booking a cruise. Who wants to book a cruise only to have it cancel saddling them with airfare costs to travel to ports of departure?
Inflation may be a big factor as well.
To read more, go here.
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