At the same time, the business is seen to be extremely volatile and ever more highly capital-intensive. The cruise industry is the fastest growing sector of the travel industry, with demand estimated to grow at 7.0% per annum over the past decade, and cruise passenger surpassing the threshold of 30 mln. According to UNWTO, cruise tourism includes ‘a wide range of activities for travelers in addition to its traditional function of providing transport and accommodation’. A set of challenging and innovative contributions is delivered for the financial performance of major cruise companies, for the first time to the authors' knowledge, in support of efficient managerial implications and recommendations.Ĭruise tourism business is a form of traveling for leisure purposes that involves an all-inclusive holiday on a cruise ship. This original study attempts to bridge the relevant research gap, as past literature remains surprisingly thin on this critical topic. The detrimental impact of the recent coronavirus pandemic on the cruise sector is also discussed. A sample of leading cruise companies, jointly holding a dominant market position, is incorporated to empirically investigate and assess their financial, accounting and stock market performance, based on convenient financial ratios and established market metrics. The paper contributes a rigorous corporate financial performance evaluation in the cruise sector and attempts to shed light on managerial financial efficiency, capital structure options, solvency conditions and corporate value dynamics.
The mix of funding sources to finance these capital-intensive projects is critical and exerts a direct impact on the cost of capital.
Major cruise companies deploy ambitious investment plans to expand and renew their expensive fleet with larger modern vessels of high value. Globalization, restructurings, mergers and a diverse bundle of travel and tourism services to cater for different passenger profiles have boosted robust revenue and profitability growth. The global cruise industry has experienced persistent growth dynamics over the last two decades, with an impressive rebound after the 2008 financial crisis, unlike commercial shipping.
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