Long-time Carnival Corp. (CCL) CEO Arnold Donald says demand is looking favorable at the moment as people seek out some relief from the pandemic via a vacation.
One way to tell this is by seeing how people are spending when they are on a cruise, explains Donald.
“On-board spending is at an all-time. Frankly, on-board spending went up every year in our almost 50-year history except one. But this year is really on an individual basis, spending is robust,” Donald said on Yahoo Finance Live.
Donald added that demand for cruises is also coming back.
“We have robust demand for cruises,” said Donald, who took over as CEO in 2013. “I mentioned at the last business update, we said we would have about 50% of our fleet back [by year-end]. So the demand hasn’t been the big issue. The issue has been much around regulatory and getting destinations to the place where guests are comfortable with the protocols required for those destinations.”
Carnival plans to provide an update on its fourth quarter results on Dec. 20. The company said several months ago it plans to have 75% of its capacity sailing again by June 2022.
An update report from Carnival would go a long way to jumpstart its stock, which has been hit lately along with other travel names on Omicron fears and increased lockdowns overseas.
Shares of the world’s largest cruise line are down 1% in December and 19% on the year, according to Yahoo Finance Plus data. Royal Caribbean and Norwegian Cruise Line shares are down 8% and 22%, respectively year-to-date.