The cruise industry is set to break records again in 2025 as 19 million Americans are projected to take a cruise during the year, according to AAA Travel. This equates to a 4.5% increase from 2024 and a 53% growth since 2022. The industry’s resilience is impressive when considering that it saw an 84% decline in passengers during the pandemic. As a result, shares of Carnival (CCL), Norwegian Cruise Line (NCLH), and Royal Caribbean (RCL) gained in today’s trading session, while Viking Holding (VIK) slipped.
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Interestingly, the Caribbean remains the top destination, with 72% of passengers choosing to sail to the region. Alaska and the Mediterranean are the next two most popular destinations, but at only 6% and 5% of passengers, respectively. In terms of departure ports, Florida’s Miami, Port Canaveral, and Fort Lauderdale are the top three, with Spain’s Barcelona and the UK’s Southampton also popular.
The cruise industry’s growth is expected to translate into significant revenue, with global sales projected to reach $44.4 billion in 2025, a 4.77% increase. To accommodate the increasing demand, 15 new ships will be launched, which include vessels from Disney and Royal Caribbean.
Which Cruise Stock Is the Better Buy?
Turning to Wall Street, out of the four stocks mentioned above, analysts think that CCL stock has the most room to run. In fact, CCL’s average price target of $30.07 per share implies more than 18% upside potential. On the other hand, analysts expect the least from VIK stock, as its average price target of $51.56 equates to a gain of 6.7%.
