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Carnival's Cunard Cruises to New Heights With Booking Surge in 2024

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Carnival Corporation & Plc’s (CCL - Free Report) Cunard is making waves in the luxury cruise industry with an extraordinary surge in guest bookings for 2024. During the period Jan. 1 and Oct. 31, 2024, the company reported 73,000 additional guest reservations compared to the same period in 2023, reflecting an impressive 23% year-on-year growth. The brand experienced a remarkable 49% increase in first-time guests compared to the same period in 2023.

This surge in bookings marks the highest number of guests secured in any equivalent period in the company’s history. Both the U.K. and North American markets played a pivotal role, with bookings from the U.K. rising 24% and those from North America up 29% year over year.

The introduction of Queen Anne in May has been instrumental in Cunard’s growth. The ship not only expanded capacity but also captured the interest of both loyal patrons and new customers alike. Alongside the ship’s launch, Cunard rolled out three innovative cruise programs in 2024, including winter 2026 and summer 2026 itineraries (introduced in March) and a winter 2027 program (revealed in October). These offerings have successfully met the evolving preferences of luxury travelers.

Cunard’s global strategy is paying dividends, with more than half of its 2024 bookings coming from markets outside the U.K. International reservations jumped 22% year over year, aided by targeted marketing campaigns that resonated with diverse audiences worldwide.

Katie McAlister, President of Cunard, highlighted the company's record-breaking bookings as a testament to its strong commercial performance. She acknowledged the dedication of Cunard’s global teams and partners, whose efforts have solidified the brand’s position as a leader in luxury travel. Going forward, the company is optimistic about the continued rollout of innovative cruise programs and strategic international campaigns to drive growth.

Price Performance of CCL Stock

Zacks Investment Research
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Shares of Carnival have surged 54.5% in the past six months compared with the industry’s 20% rise. The company is benefiting from sustained demand strength, increased booking volumes at significantly higher prices and the base loading strategy. During the third-quarter fiscal 2024, Carnival reported a solid booked position for the remainder of the year, with pricing and occupancy considerably higher than the 2023 levels. Also, the focus on marketing campaign efforts bodes well.

Owing to strong demand and cost-saving opportunities, the company raised its full-year 2024 adjusted EBITDA guidance to approximately $6 billion compared with the previous expectation of $5.83 billion. Earnings estimates for fiscal 2024 have increased in the past 30 days, depicting analysts’ optimism regarding the stock growth potential.

CCL’s Zacks Rank & Other Key Picks

Carnival sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the Zacks Consumer Discretionary sector have been discussed below.

Cinemark Holdings, Inc. (CNK - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

CNK has a trailing four-quarter earnings surprise of 164.8%, on average. The stock has surged 152.3% in the past year. The Zacks Consensus Estimate for CNK’s 2025 sales indicates growth of 11% from the year-ago levels.

Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) currently has a Zacks Rank #2. NCLH has a trailing four-quarter earnings surprise of 4.2%, on average. The stock has surged 55.7% in the past year.

The Zacks Consensus Estimate for NCLH’s 2024 sales and earnings per share (EPS) indicates growth of 10.7% and 134.3%, respectively, from the year-ago levels.

Royal Caribbean Cruises Ltd. (RCL - Free Report) currently carries a Zacks Rank #2. RCL has a trailing four-quarter earnings surprise of 16.2%, on average. The stock has surged 115.2% in the past year.

The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates growth of 18.6% and 71.9%, respectively, from the year-ago levels.

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