Cruise line stocks fall amid concerns over promotional activity

Published 19/09/2025, 15:04
© Reuters.

Investing.com -- Carnival Corporation (NYSE:CCL) stock fell 3.2% on Friday, leading a broader decline in cruise line shares amid growing concerns about increased promotional activity in the sector. Royal Caribbean Cruises (NYSE:RCL) dropped 2.7%, Norwegian Cruise Line Holdings (NYSE:NCLH) declined 1.7%, and Viking Holdings (NYSE:VIK) slipped 2.5%.

The selloff follows observations from Truist analyst C. Patrick Scholes, who noted a "big uptick in promos and/or price cuts" designed to drive bookings in the cruise industry. In his September demand and price survey, Scholes described seeing "mixed trends" with "mixed implications" for the industry and related stocks.

Despite the increased promotional activity, Scholes indicated that cruise operators are still likely to meet third-quarter earnings expectations and maintain their full-year guidance. Companies also appear to remain on track to achieve their balance sheet goals, according to the analyst’s assessment.

However, Scholes cautioned that current booking and pricing trends suggest a normalization in growth rates rather than the significantly outperforming results that were anticipated earlier in the year. This moderation in growth expectations appears to be weighing on investor sentiment across the cruise line sector.

The analyst’s observations were based on extensive conversations with senior executives in the private travel industry over the past month, as well as analysis of "big data" on future cruise bookings and pricing patterns.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.