Key problems facing cruise sector investors
Sparse Pricing Data
Critically, investors lack consistent access to detailed pricing data, the best leading indicator of yields, EBITDA, FCF and therefore, company performance. Institutional investors rely on periodic, sparse, anecdotal travel agent surveys and limited other data to evaluate the health of companies.
Analysts and PMs Spread Thin
Sector analysts also conduct research on several segments within leisure, so have limited time allocated to cruise.
Drydocks, Bunker Fuel and FX
Tracking every single voyage and gaps in between helps provide a view into drydock timing, lost revenue days and the associated expenses. Tracking bunker fuels daily helps evaluate how the main variable cost affects results. Tracking FX is an important indicator to FCF due to greater exposure to EUR and GBP.
Our Solution
Infinity Research is the only cruise research firm that regularly collects ticket pricing data on over 95% of the global cruise industry.
Summary excels with commentary, as well as periodic insights into industry events and trends, is a distinguishing factor vs. sell-side competitors.
Proprietary data collection and captures quantitative ticket data by:
- ship
- cabin category
- brand
- itinerary
- for each of the 15 major destinations
The database encompasses pricing data for not only the publicly-traded companies, but also private companies, such as MSC, Viking, AMA Waterways, Avalon, etc.
Having run cruise data analysis for almost 20 years provides a unique view into long-term trends. Focus is on sequential and YOY pricing.
Earnings and FCF analysis is enriched by daily tracking of global bunker fuel, as well as drydock detail.
This unique, number-based approach provides the opportunity for buy-side analysts and PMs to develop their own insights with regard to future financial performance of cruise companies, not limited to Infinity Research’s conclusions.