Cruise ships are running cheaper than hotels, according to a report from NBC News on Sunday.
According to UBS leisure analyst Robin Farley, the price gap between hotels and cruises stems from their use: Cruise ships are generally used for leisure, while hotels are used in many cases for business travel.
After the COVID-19 pandemic, the travel industry was largely impacted as a whole. Since then, prices in the travel industry have continued to rise. On Wednesday, Hilton CEO Christopher Nassetta said during the company's quarterly earnings call that the demand for leisure travel in the U.S. "is flat, maybe even a little bit down."
However, the prices for a cruise ship stay are still lower than those of a hotel stay.
Barclays analyst Brandt Montour said in a note last week, "The Cruise industry's continued strength in bookings/demand, whilst cracks form across much of the rest of the travel market, is primarily driven by the combination of the still significant discount to land-based vacations coupled with the relatively elevated service levels."
Speaking on the state of travel, Carnival CEO Josh Weinstein argued that higher costs for hotels could leave the cruise ship industry to not only offer a better price for customers but a better value for their experience.
"If that's true that the consumer is slowing down in other sectors," Weinstein said," that really bodes well for us to be able to take them into our demand profile because we will be of value. We give a better experience at a better price than they can achieve elsewhere."
Nick Koutsobinas ✉
Nick Koutsobinas, a Newsmax writer, has years of news reporting experience. A graduate from Missouri State University’s philosophy program, he focuses on exposing corruption and censorship.
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