Published on 26 May 2023 on Zacks via Yahoo Finance

Here's Why Investors Should Retain Norwegian Cruise (NCLH) Now

Norwegian Cruise Line Holdings Ltd. NCLH is likely to benefit from strong booking activities, occupancy improvement and fleet expansion efforts. This and the focus on onboard revenue generation bode well. However, inflationary pressures pose concerns.Let us discuss why investors should hold on to the stock for the time being.

Key Catalysts

Improvements in booking activities have been aiding the company. The bookings include incorporating higher pricing and the dilutive impact of future cruise credits (FCCs). During the first quarter of 2023, the company generated solid booking volumes, courtesy of strong demand in the WAVE season. The company stated that the cumulative booked position for 2023 are higher than 2019 levels. Also, it reported strength in advance ticket sales. As of Mar 31, 2023, the company’s advance ticket sales balance came in at $3.4 billion, up 26% (from the previous quarter’s levels) and 60% (from 2019 levels). The company stated pricing levels to be elevated. The company intends to focus on strategic marketing efforts to drive demand and high-value bookings in the upcoming periods.