Key insights
- Bank of America data indicates cruise spending rebounded in April, growing 15.8% YoY. While sequential spending declined, it outperformed historical averages. Royal Caribbean noted improved bookings, aligning with the data. Cruise spending data has historically correlated with industry net yields, suggesting potential positive implications for cruise line profitability, though the impact on broader US equities is limited.
Investing.com -- Monthly cruise spending in April increased 15.8% year-over-year, according to aggregated credit and debit card data from Bank of America, rebounding from March's 6.7% growth rate.
On a sequential basis, cruise spending in April declined 8.1% compared to March, which was above the 2023-2025 average sequential decline of 12.7%.
The April rebound follows a period of slower bookings in March amid geopolitical uncertainty. Royal Caribbean (NYSE: RCL) stated during its April 30 earnings call that bookings had "turned the corner," which appears to align with the Bank of America spending data.
April's year-over-year comparison benefited from easier comparisons, though the sequential trend showed improvement relative to historical patterns.
Bank of America's aggregated cruise card spending data has shown approximately 75% correlation with industry net yields on a one-quarter lag since 2008, excluding the pandemic period.