Contemporary Cruise Brand Pricing Dropping; Luxury Brands Still Trending Well

Cruise Week

Prior to last month, cruise fares for the first half of 2021 were was "hanging in there and looked to be moderating a bit, but since then we have only seen our data deteriorate across the board," says a report by Hedgeye Gaming Lodging & Leisure. This weakness is also reflective in Q4 2020 pricing. 

"The general trend, broadly speaking, has gotten worse since we last checked in two weeks ago," the report indicates.

But while contemporary brands continue to lag, luxury brands are hanging in there a bit better, with Regent (a subsidiary of NCLH) and Silversea (a subsidiary of RCL) still showing positive pricing for the first half of 2021 since the start of Wave season.

Big brands like Carnival, Royal Caribbean, and NCL were down mid- to single-digits since Wave season commenced but, since mid-MAY, pricing has dramatically decelerated and is down around 13%, 12%, and 15%, respectively.

"Discounting and promotional activity will likely show up first in those contemporary brands, so one shouldn’t be overly surprised to see that," stated the report. "However, the continued weakness over the last month or so is definitely cause for concern as the '21 yield picture is coming into focus."

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