NEW YORK (Reuters) - Shares of the world’s largest cruise operators fell sharply on Wednesday on concerns about demand in Europe and on a drop in the broader stock market.
The slump in the stock market came a day after Europe's biggest travel company, TUI Travel TUIGn.DETT.L, said strong booking patterns seen in early May were not sustained during the early summer period.
Europe is seen as a major growth spot for the cruise industry.
“TUI Travel (Plc’s) cautionary comments coupled (with) recent comments from European-based consumer staple companies of slowing demand cannot be dismissed and will bear ongoing close monitoring,” Wells Fargo analyst Timothy Conder said in a research note Wednesday.
But Condor, who has “outperform” ratings on both Carnival and Royal Caribbean, added that booking and pricing trends for European-based cruise consumers remained “encouraging.”
Reporting by Deepa Seetharaman; Editing by Lisa Von Ahn
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