Top Calls: Redburn Upgrads Cruise Operators

The video discusses the impact of COVID-19 on travel pricing, particularly in the cruise industry. It highlights the differences in booking windows between hotels and cruises, and how this affects pricing. The role of travel agents has diminished due to a shift towards online bookings, benefiting cruise lines. The video also covers stock upgrades for Carnival and Norwegian, noting their exposure to slower-recovering markets compared to Royal Caribbean.

What was the historical relationship between hotel and cruise pricing before COVID-19?

• Hotel pricing was always higher.

• They moved in lockstep.

• They were inversely related.

• Cruise pricing was always higher.

How long is the typical booking window for a cruise compared to a hotel?

• 1 year for both

• 2-3 months for both

• 18 months for cruises, 2-3 months for hotels

• 6 months for cruises, 2-3 months for hotels

Why has Royal Caribbean seen better pricing in the Caribbean?

• Longer booking windows

• Shorter booking windows

• Lower demand for Caribbean cruises

• Higher demand for European cruises

What significant change occurred in the role of travel agents during COVID-19?

• There was a shift towards online bookings.

• They started focusing on hotel bookings.

• They became obsolete.

• Their role increased significantly.

What percentage of cruise revenues was spent on distribution in 2019?

• 75%

• 15%

• 29%

• 50%

Why were Carnival and Norwegian stocks upgraded?

• They have more exposure to the Caribbean market.

• They have lower operational costs.

• They have a higher number of ships.

• They have longer booking curves in recovering areas.

Which cruise line has benefited from its exposure to the Caribbean market?

• Carnival

• MSC Cruises

• Royal Caribbean

• Norwegian