Current low cruise prices are expected to continue into 2023 and 2024. Experts blame this on the pressure of COVID and the difficulty of attracting new customers to cruises.
With fluctuating jet fuel prices being passed along to airline customers, rising hotel booking fees due to pent-up demand, and gasoline prices forcing vehicles to spend $5 a gallon, a cruise can be the most economical alternative for a good trip in the summer of 2022.
Prices on cruise trips”are some of the lowest we’ve seen in a long time,” Chris Gray Faust, editor-in-chief of online industry publication The Cruise Critic, told GMA.
Faust saw a five-day Caribbean cruise for $500 a person, which means “about $100 a day, including lodging, meals and entertainment. And with the way land holidays have been… [with] more expensive airfare, you have a hard time finding a similarly priced vacation on land.”
There are other three- or four-night cruise deals as well that range from $100 to $125 a night. Gray Faust even found a seven-night Alaska cruise for $399 per person with Holland America.
Regarding the stock market, Bank of America analyst Andrew Didora said last week that “we see this as more specific to the cruise industry than a higher reading for the leisure consumer, given the added pressures of COVID (tests still needed), continued increase in cruise capacity and likely some difficulty attracting the ‘new to cruising’ consumer,” said Didora.
Carnival’s share prices fell the most in May compared to Royal Caribbean Cruises and Norwegian Cruise Line Holdings, down 2.6% in all periods compared to November.
Carnival’s pricing weakness is not surprising, according to Didora, given the company’s exposure to Europe, which has been particularly bad due to COVID-19 restrictions and the conflict in Ukraine.
After a 3.6% increase in April, Royal Caribbean’s prices dropped 1.2% in May. According to Bank of America, Norwegian prices fell 1.3% month-on-month in May, making it five straight months in which they fell.
With a 4.6% cut in May, Norwegian overcame price drops in 2023. Carnival reduced its prices by 2.6% on average in 2023, while Royal Caribbean reduced its prices by 2.4%, according to Didora.