Study Shows Caribbean Cruise Prices Rising

Caribbean cruise prices continue to rise while European prices are down, according to a Wachovia survey.

With capacity up 15 percent to 20 percent in Europe this year, Wachovia analyst Tim Conder said that “European pricing remains the most challenging” for the industry. Conder added that after currency benefits are realized, European cruise prices will be only slightly down.

Mr. Conder wrote that pricing in the Caribbean is up almost 10 percent, while Alaska pricing has declined in the low double digits for Carnival brands (excluding Holland America and Princess), and the low single digits increase for Royal Caribbean Cruises brands.

Mr. Conder lowered his 2008 and 2009 estimates for Carnival shares solely based on the sharp escalation of fuel prices, but said he remains positive about cruise shares in general due to the “ongoing overall solid pricing environment despite economic challenges.”