Norwegian Cruise lifts profit target on robust cruise vacation demand

(Reuters) – Norwegian Cruise Line (NYSE:) Holdings raised its full-year profit forecast on Wednesday, betting on record demand for cruise vacations to destinations like the Caribbean and higher ticket prices.

Operators are seeing all-time high booking rates for cruise vacations this year, as travelers continue to opt for sea-based sojourns that offer a range of fun activities under one roof, in comparison to expensive land-based holidays.

That has given them enough room to hike prices and narrow the pricing gap between cruise and land holidays, which also helps protect margins from lingering costs and boost profits.

The cruise operator expects an adjusted profit of $1.32 per share for fiscal 2024, compared with its previous forecast of $1.23 per share. Analysts on average were expecting annual profit of $1.30, according to LSEG data.

However, shares of the company dropped 2.6% in premarket trading after it missed first-quarter revenue estimates.

The company’s quarterly revenue rose to $2.19 billion, compared to analysts’ expectations of $2.24 billion.