UBS: Cruise stocks rise as the opening of the Strait of Hormuz boosts the market

UBS analysts mentioned in a research report that after recent discussions with a major US cruise retailer, they learned that ongoing conflicts in the Middle East have had a limited impact on cruise demand. However, this retailer also noted that not all retailers are as optimistic as he is. Performance over the past 30 to 40 days has been mixed: cruises on Caribbean routes "performed exceptionally well," while Alaska routes have benefited from a shift in demand. The analysts pointed out that there has been some hesitation in demand for Eastern Mediterranean routes, prompting cruise companies to intensify promotional efforts. They added that these promotions primarily increase non-cash value, such as offering airline points, rather than simply cutting prices. Previously, Iranian Foreign Minister Abbas Araqchi announced the opening of the Strait of Hormuz, which led to a rise in cruise stocks on Friday.