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Analysis of Royal Caribbean share price

Trade the Royal Caribbean share!
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If you are interested in the Royal Caribbean Cruises stock and want to invest in it online, we offer you our help in your analysis of this stock. In order to understand how this stock is likely to perform in the coming weeks and months, we offer you to discover the detailed activities of this company, its main competitors on the market or its strategic allies. You will also be able to perform a quality fundamental analysis of this stock thanks to the list of things to watch out for that we will provide you with here.

Elements that can influence the price of this asset:

Analysis N°1

Firstly, the group could take advantage of developing economies by carrying out operations to position itself in these markets.

Analysis N°2

We will also monitor the evolution of consumer needs and the evolution of the demand for cruises in the world, which is currently on the rise and has been for several years.

Analysis N°3

Customer loyalty is also an important source of profit for the group and we will therefore monitor the operations put in place to make them want to go on a cruise again.

Analysis N°4

Of course, any news about shipwrecks or safety problems, even from a competitor, can damage the image of cruises and lead to a significant drop in demand.

Analysis N°5

Periods of economic recession can also lead to a decline in household leisure budgets and therefore a decline in the profitability of the travel industry.

Analysis N°6

Finally, we will of course follow with interest the competition in this sector with the offers and market shares of Royal Caribbean Cruises' main adversaries.

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General presentation of Royal Caribbean

A good understanding of Royal Caribbean Cruises and its business is also essential for you to understand how this stock may perform in the future. That is why we are now providing you with a detailed presentation of this company and its sources of profits.

The Royal Caribbean Cruises group is an American company specializing in the tourism sector. More precisely, this company is currently the world's number two in the cruise industry. The group operates under the names of Royal Caribbean International, Celebrity Cruises, Pullmantur Cruises, Azamara Cruises and CDF Croisières de France.

To better understand the group's activities, they can be divided into different divisions according to the share of turnover they generate and in this way:

  • Ticket sales account for 73% of the company's revenue with 53% of sales in the US alone.
  • The remaining 27% of the turnover comes from the sale of services on board the boats, such as the services offered through concessions.

Currently, this company manages a fleet of 43 ships with a capacity of 105,750 berths.

Analysis of Royal Caribbean share price
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The major competitors of Royal Caribbean

Now let's find out together which companies you should be following as part of your Caribbean Cruises stock competitive analysis, i.e. the major players in the world cruise industry.

Carnival Cruises Lines

This American shipping company is also specialized in cruises and is a subsidiary of the Carnival group. CLL is also the most popular cruise brand in North America and the most profitable according to the company's website. It carries more than 3.7 million passengers worldwide each year.

Star Cruises

This Chinese company exists since 1993 and is a subsidiary of the Genting group. It currently owns 4 cruise ships.

MSC Crociere

Finally, MSC Crociere is a Swiss shipping company and a subsidiary of the MSC Crociere Group, which belongs to the Mediterranean Shipping Company.


The major partners of Royal Caribbean

Let's end this article dedicated to Royal Caribbean Cruises with a presentation of the important allies of this group. Here are two concrete examples of strategic partnerships that this company has set up with other companies recently:

WWF

First of all, Royal Caribbean Cruises has partnered with the World Wildlife Fund WWF by offering nature-themed cruises. In particular, it relies on the expertise of tour operators to meet the requirements of the United Nations World Council on Sustainable Tourism, which sets standards that all tourism businesses must adhere to with four main themes including effective sustainable planning, maximizing local social and economic benefits, enhancing cultural heritage and reducing negative environmental impacts.

O3B Maritime

The Group has also signed a partnership with O3b Maritime, capable of providing cruise guests and crew with maritime broadband services at parity with terrestrial telecommunications standards. This is the second such partnership between the two companies, this time to provide high-speed broadband service via satellite on board one of the world's largest and most innovative cruise ships, Allure of the Seas, which can carry more than 8,000 passengers, employees and crew in the Caribbean and which will benefit from high-speed Internet access equivalent to optical fibre.

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Positive factors for Royal Caribbean shares
The factors in favour of a rise in the Royal Caribbean share price:

To understand how Caribbean Cruises' share price is likely to perform in the coming years, you need to know how this company can assert its growth. It is therefore essential to know the advantages and disadvantages of this stock, i.e. the main strengths and weaknesses of this company. This is what we propose to discover here in detail.

Let's start by reviewing the various advantages and strengths that Caribbean Cruises has, which can support its growth and stock market performance:

  • First of all, the group has a particularly strong market position. First of all, the group has a particularly strong position in the market, covering the world market with prospects for growth and market share gains that are still significant.
  • The group's brand also benefits from an excellent image with the general public, with strong brand awareness and popularity.
  • Customer satisfaction is also one of the most important strengths of this company, as it is excellent, enabling it to maximise customer loyalty.
  • Financially, the group has seen an increase in revenue streams over the past decade, which has allowed it to deal with the Covid pandemic more effectively and calmly.
  • Caribbean Cruises' key strengths include innovations to the ships in its fleet that make them faster and more efficient.
  • The group also invests heavily in advertising and marketing to ensure that it remains a strong brand.
  • The company is also benefiting from a still very important growth potential in emerging and developing economies as well as an increasing interest of travellers for cruise holidays.
  • Finally, the group's retention rate is high, as according to the latest research, former customers plan to cruise again within the next three years.
Negative factors for Royal Caribbean shares
The factors in favour of a drop in the Royal Caribbean share price:

Let's now review the main weaknesses of the Caribbean Cruises group with the elements that could hinder its growth and penalise its share price.

  • Firstly, and given its business, the group is being hit hard by the current rise in fuel prices, which is making its costs higher and significantly reducing its margins.
  • There is also little differentiation between the services offered by Caribbean Cruises and those of its competitors with little opportunity to differentiate. This results in relatively limited customer loyalty to the brand.
  • Recent shipwrecks and safety problems on cruise ships even from different companies also contribute to the damage to demand and to the company's brand image.
  • It can also be mentioned here that the current economic crisis could dampen the demand for cruises from individuals. As this recreational activity is particularly expensive, some people will prefer to abandon it in favour of a more traditional holiday due to a drop in their purchasing power.
  • The economic recession in the developed countries is also a major brake on the group's growth and the indicators are not very positive for the years to come.
  • Finally, we can also mention here that the Caribbean Cruises group has suffered particularly from the Covid pandemic over the last two years and especially in 2020 with travel restrictions, border closures, confinements and other measures that have prevented cruisers from leaving by boat and sailing. Indeed, the group's financial situation is still struggling to recover with demand recovering only weakly.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

What are the major weaknesses of the Royal Caribbean Cruises group?

Royal Caribbean Cruises has a few weaknesses that you should be aware of before trading this stock online. Among these flaws is its strong dependence on the price of fuel, which is increasingly important and can reduce its margins. Finally, this group does not have a significant differentiation with its competitors which poses problems of customer loyalty.

Where and how to follow the Royal Caribbean Cruises share price?

The Royal Caribbean Cruises share price is currently listed on the NYSE American stock market. Its quotation evolves according to the opening hours of the New York Stock Exchange. However, you can of course check its price live and in real time from an online trading platform offering stock charts.

How to make a successful technical analysis of the Royal Caribbean Cruises share?

To perform a quality technical analysis of the Royal Caribbean Cruises share, you should first use a technology chart that displays several indicators simultaneously. Then, use several of these indicators including trend or volatility indicators.

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