USA: Demand Could Exceed Supply of Ships When Cruising Restarts

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March 18. The research arm of Swiss investment bank UBS predicts that the return of cruising in North America will happen a bit later than expected, but that the industry’s recovery will be strong once it begins.

The analysts predict a slow 12-month startup period, with less than 10 percent of capacity in use in the first quarter of operations. As the cruise fleet works through the bureaucratic and logistical process of coming back online, staterooms will be in limited supply, and there may not be enough to meet customer demand. “Despite what is likely to be a challenging restart period, we believe demand will exceed supply, partly because supply will be so limited initially and also because there will be 2-3 years since the last cruise for many itineraries,” they wrote.

That imbalance is good news for pricing and booking after a long dry spell for the cruise lines, which have been operating on drastically reduced income since last spring.

Source: Maritime Executive

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56330cookie-checkUSA: Demand Could Exceed Supply of Ships When Cruising Restarts