High inflation, consecutive federal rate hikes, and looming recessionary fears might cause significant headwinds for cruise line companies. So, I think this is not the right time to invest in Royal Caribbean Cruises Ltd. (RCL) and Carnival Corporation & plc (CCL) for the reasons mentioned throughout this article.
Inflation has caused Americans to reduce their discretionary spending, including travel. Furthermore, recession fears may further slow travel demand, harming the cruise line industry’s growth. According to Statista, there is probability of 70.9% that the United States will fall into an economic recession by May 2024.
