Analyst Notes Continued Hike in Demand for Caribbean Cruises

Cruise pricing and booking trends are improving and demand for Royal Caribbean International is the strongest among the major cruise brands, according to a monthly survey of 450 travel agents conducted by Bank of America leisure analyst Michael Savner.

In its third Monthly Cruise Line Survey, Mr. Savner said that Caribbean demand was on the rise for the third consecutive month in October, with the Caribbean demand index rising to 46.8 points during the month from 39.5 points in August.

He said that the upcoming Wave season could be “solid,” as Bank of America’s Wave season index had improved from 74.6 points in August to 78.8 points in October.

According to the report, 35 percent of travel agents said Norwegian Cruise Line was showing the biggest decrease in demand, while 30 percent said RCI had the most increase in demand.

Mr. Savner wrote that Bank of America is positive on the industry and that “negative sentiment for the cruise industry has peaked, that cruise demand outside the Caribbean is strong, and bookings should improve in 2007”.

The renowned analyst also added that in terms of the travel sector, he expected high fuel prices and low consumer sentiment to “limit meaningful increase in consumer spending for traditional leisure goods.”