3 Cruise Line Stocks in Focus on Expected Demand Strength in 2026

Industry Overview - The cruise industry is experiencing strong demand and increased booking volumes, particularly in North America and Europe, with solid pricing and onboard spending contributing positively [1] - AAA projects that the number of Americans traveling on ocean cruises will reach a record high of 21.7 million by 2026, reflecting a year-over-year increase of 4.5% [2] - Cruise operators are investing in new hardware, including mega-ships and private destinations, to attract new customers [2] Company Insights Royal Caribbean Cruises Ltd. (RCL) - RCL is benefiting from robust booking trends and strong consumer spending onboard, with a focus on digital investment, fleet expansion, and enhancing guest experiences [6][9] - The company plans to debut the Legend of the Seas in 2026 and has secured shipbuilding slots through a long-term agreement with Meyer Turku, including a confirmed order for Icon 5 scheduled for delivery in 2028 [7][8] - RCL has an expected revenue growth rate of 9.3% and an earnings growth rate of 14.1% for the current year, with earnings estimates improving by 0.01% over the last 60 days [9] Carnival Corp. & plc (CCL) - CCL is experiencing sustained demand and increased booking volumes, with yields increasing by 5.5% during fiscal 2025, exceeding management's guidance [12][15] - The company is approximately two-thirds booked at historically high prices and expects this momentum to continue into fiscal 2026, projecting double-digit earnings growth [13][14] - CCL has an expected revenue growth rate of 4.2% and an earnings growth rate of 12.4% for the current year, with earnings estimates increasing by 5.4% over the last 30 days [15] Norwegian Cruise Line Holdings Ltd. (NCLH) - NCLH is benefiting from strong consumer demand and a solid booking environment, focusing on strategic investments in destination enhancements and luxury fleet upgrades [17] - The company forecasts net yield growth of approximately 3.5% to 4% in the fourth quarter, leveraging data analytics for personalized pre-cruise interactions [18] - NCLH has an expected revenue growth rate of 10.2% and an earnings growth rate of 26.9% for the current year, with earnings estimates improving by 0.8% over the last 30 days [19]