Restaurateurs and their staffs are suffering financially while also trying to accommodate the erratically changing rules-from mandatory masks for employees to reduced capacities to outdoor dining only. As the number of COVID-19 cases spike in Florida, Texas, California and many other states, restaurants are grappling with health and safety guidelines that change day to day. Cruise stocks were hit hard during the pandemic.Just when they thought indoor dining was back, restaurants are being forced to close their doors again. And they’re not not exactly back to normal yet.
For the most part, cruise liners weren’t very active during the pandemic. So naturally, cruise stock values plummeted alongside revenue. However, investors looking for a bargain have started to take a closer look. That being said, the window of opportunity isn’t going to stay open forever… But as evidenced by the vacation deals some are offering, there’s a lot of growth left in this portion of the travel industry.
Pre-pandemic, cruises were the fastest growing sector in the leisure travel industry. According to post-cruise surveys, a whopping 92% of cruisers said they would probably book a cruise for their next vacation as well. There were also key demographic factors working in cruise lines’ favor. Cruises were beginning to draw younger crowds. Millennials and Gen Xers preferred cruises to all-inclusive resorts, tours and other land-based vacation options. In fact, cruising was the favorite means of vacation for all generations by a substantial margin. That’s one reason cruise stocks have sustained value.Īnd here’s the last key point that shows cruises are poised for a comeback. The average adult on a cruise already has five other cruises under their belt. There’s growing adoption of cruises as a means of vacationing. And with that growth comes strong loyalty. Norwegian Cruise Line Holdings (NYSE: NCLH).And they’re about to get their shot… Cruise Stocks That Are About to Start Making Money Again All of that adds up to a whole lot of people itching to get back on a cruise ship. The big cruise stocks have seen a lot of interest from value investors looking for a good deal. This is an example of investors moving away from flashy growth stocks, as many analysts are recommending. A more back-to-basics investing approach is what they’re prescribing for investors. Tech stocks – while they’ll always have a place in a diversified portfolio – won’t lead the pack forever. Because the times, they’re poised to change again.Īs Liberty Through Wealth‘s Alexander Green recently wrote… Many of the high-flying work-from-home stocks have run their course. To be a successful investor… flip the script and buy what’s out of favor, knowing that with time all sectors, industries and market classes will shine again. In other words, industries that struggled to stay afloat though the pandemic will soon rise with the incoming tide of pent-up demand. On top of that, you’d be hard-pressed to find an area of the economy with as much pent-up demand as the travel industry. And the demand for travel has never had the cooped-up financial funding quite like it has now. And those holding cruise stocks could be in a very promising position. When economies shut down around the world, some industries failed.
An estimated 110,000 restaurants and bars closed in the U.S – lots of them for good. Many of them received little to no relief from the Congressional stimulus packages. Carnival took on an additional $4 billion in debt to try to get over the pandemic hump.
Situations like this sent cruise stocks tumbling. Unlike independent restaurants and bars, cruise lines had more options to withstand the loss of demand for their services.
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