CKIA’s View
Cruise lines will probably raise prices as bookings have been strong since the start of “wave season,” the time from January to April when people book cruises for the year. Royal Caribbean Group CEO Jason Liberty said his company experienced the seven biggest booking weeks in its history and is encouraged by the ability to raise pricing. According to Liberty, cruise vacations are currently priced 30% or more cheaper than land-based resorts, the largest discount in the history of the cruise business, but the discount is starting to reverse. Bank of America Securities reported that pricing for Royal Caribbean sailings increased 3.1% in the month since its last pricing analysis. Other cruise companies also saw pricing increases. Onboard spending per passenger was also up 30% from 2019. Holland America, P&O Cruises, and Aida Cruises reported record booking weeks.
