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Cruise Investors Smell a Fire Sale

The fire aboard Royal Caribbean's (NYSE: RCL  ) Grandeur of the Seas was put out within two hours, but not before disrupting the travel plans of passengers on board and those set to board the ship this Friday. Both sailings have been nixed, and even though Royal Caribbean is doing things right by issuing refunds and discounts on future sailings, this is going to be a big hit for the cruise industry.

Royal Caribbean,¬†NCL (UNKNOWN: NCL.DL  ) , and ship spa services provider Steiner Leisure (UNKNOWN: STNR.DL  ) all hit new 52-week highs earlier this month. Unlike Carnival (NYSE: CCL  ) -- which has been sluggish in light of several mishaps at sea since last year -- everyone seemed to view the negative instances as Carnival-specific events. Now Royal Caribbean's fire may lead folks to question booking on any cruise line in the near future.

In this video, longtime Fool contributor Rick Munarriz -- who experienced a kitchen fire aboard the QE2 and whose parents suffered a nixed Hawaiian cruise when the S.S. Independence ceased operations several years ago -- takes a look at the reputation problems that the industry may experience in light of Monday's fire.

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  • Report this Comment On May 29, 2013, at 9:22 PM, Gunnyphillips wrote:

    This article amounts to nothing more than common sense. A series of negative events across multiple cruise lines might cause a dip in the public's perception of the industry? I think we kind of figured as much.

  • Report this Comment On May 30, 2013, at 3:48 PM, TMFBreakerRick wrote:

    Common sense -- yet RCL, NCL, and Steiner all hit 52-week highs earlier this month despite the series of negative events at Carnival.

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Related Tickers

9/29/2016 4:00 PM
CCL $48.26 Down -0.52 -1.07%
Carnival CAPS Rating: ***
RCL $74.25 Up +0.04 +0.05%
Royal Caribbean CAPS Rating: ***
NCL.DL $0.00 Down +0.00 +0.00%
Nuveen Insured CA… CAPS Rating: No stars
STNR.DL $0.00 Down +0.00 +0.00%
Steiner Leisure CAPS Rating: *****