Is Royal Caribbean (RCL) More Attractive Than Carnival (CCL)? – August 23, 2018

The cruise and travel space primarily thrives on consumer spending. Demand for cruises is relatively elastic as any significant change in the general market often tampers with consumers’ preference for such services.

Notably, the near-term fate of the overall leisure space reflects an increasing anxiety among consumers, regarding Trump’s tariff policy. Per the Bureau of Economic Analysis, disposable personal income increased 4.5% in the second quarter of 2018, down from the 7% increase in the first quarter.

However, the Federal Reserve’s latest forecast calls for economic growth of 2.8% for 2018, which is likely to support growth for the leisure industry. Moreover, according to Cruise Lines International Association (CLIA), the cruise industry is expected to continue…

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