1403 ET - Cruise prices have plenty of room to grow given the gap to U.S. hotel prices is still significantly wider than pre-pandemic, with the gap to U.S. and Caribbean resorts growing even further in 2025 alone, UBS analysts say in a research note. While such a gap will always exist since cruises see none of the price inelasticity associated with business travel, there is no reason why it should be so much larger given higher hotel rates have been driven by leisure demand, the analysts says. At the same time, cruise supply growth remains below pre-pandemic levels, they say. Such a setup should continue to support above-average pricing and volume growth for U.S. cruise lines and continue to boost their stocks, the analysts say.(kelly.cloonan@wsj.com)

(END) Dow Jones Newswires

May 28, 2025 14:03 ET (18:03 GMT)

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