Ticket prices for cruises are surging as operators say they're meeting higher demand for post-pandemic vacations.
Cruiser operators like Carnival and Royal Caribbean said they're considering raising prices even more to close the gap between the price of cruise vacations and land-based vacation alternatives.are setting some ticket prices higher than pre-pandemic levels and are indicating they may raise them further, even as they post pre-Covid profits.the average price of a five-night cruise in the Caribbean for December of this year is $736, roughly 37% higher than the average price a year earlier.
A Carnival spokesperson declined to comment on the company's specific future pricing actions, but said in a statement to CNBC that the company has been able to deliver a value of 25% to 50% over "comparable land-based vacation alternatives."Royal Caribbean CEO Jason Liberty echoed the sentiment, saying on that company's post-earnings call in July that his company is also considering increasing prices to meet the surge in demand.
That demand is being driven by both seasoned cruisers and first-timers, he said, a dynamic the industry hasn't historically seen much of. Even so, Saunders said he believes the high prices might be here to stay. Truist Securities analyst Patrick Scholes said while rising oil prices are important to monitor for context for the cruise industry, there's not enough of a correlation between that increase and the increase in cruise prices to explain the propped-up tickets.
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