Cruise ship bookings weak on coronavirus headlines

The cruise ship industry has not been able to escape the economic impact of the coronavirus, with the pace of bookings falling across the industry, according to U.S. based analysts from Instinet. 

The recent news of Royal Carribean’s Anthem of the Seas which has 12 Chinese national passengers suspected of being infected with coronavirus has sent the group’s share price down 5 percent. 

According to their discussion with several booking agents, the news has driven down a booking volume of around 15 percent. 

The analysts expect the lower booking volumes in the near term to worsen. 

That being said, analysts expect a recovery in the pace of bookings once cable news coverage of the virus diminishes, along with the threat of the illness.

“Like the Macau stocks, history tells us that underlying demand does not decline; global travelers will regain confidence and resume their travel planning.”

However, missed bookings will have a negative impact on yield growth and guidance.