RCL Stock is Soaring Past Competitors

RCL is the clear leader in the cruise game.

We've said that for some time.

Aside from its strategic pricing (lower than Norwegian but higher than Carnival) and focus on bigger, better ships, its leadership team has proven to be the most savvy.

Royal Caribbean effectively managed its finances during the pandemic, particularly by minimizing equity issuance. This strategy preserved its share price and enabled a faster return to pre-pandemic levels. Consequently, Royal Caribbean saw the highest ticket revenue increase among its peers and its share price has exceeded pre-pandemic highs, while competitors like Carnival and Norwegian are still trading more than -60% below their 2019 levels.

Looking ahead, RCL appears to be...well, cruising.

The company is in the news after a robust hiring spree, with plans to add 10,000 new employees this year.

LikeFolio metrics confirm robust demand.

Mention volume is heading higher, up +22% YoY.

Web visits, indicative of future bookings, continue higher even after peak "wave season." Wave season is a period from January to March when travelers are mostly likely to pull the trigger on vacation plans.

Most importantly, the company appears to be besting competitors even if ever so slightly.

The cruise industry at large has benefitted big time from pent-up demand, and it doesn't look like the spring is fully uncoiled yet.

Last quarter all three names we track reported "record-breaking quarters" (CCL, NCLH, RCL) with statements like this on earnings calls:

• "We entered the year with the best booked position we have ever seen, and now have nearly two-thirds of our occupancy already on the books for 2024, at considerably higher prices" - CCL

• "We are determined to capitalize on our recent achievements and take advantage of the positive momentum and strong demand for cruise which resulted in turning the year at all-time highs in both our booked position and pricing," - NCLH

• "Demand for our brands continues to outpace broader travel as a result of consumer spend further shifting toward experiences..." - RCL

We expect continued momentum for cruise lines and overperformance from RCL.

But do note this stock has already caught up to where it was in 2019 and then some.

Investors looking for divergence plays may find one in Norwegian in particular, whose mention volume is up by triple digits YoY while its stock trades ~11% lower YTD.