After dealing with some choppy waters, Carnival (CCL 0.70%) has been sailing smoothly in recent years. As the economic backdrop normalized following the worst days of the COVID-19 pandemic and consumers had a propensity to travel once again, the business has gained tremendously.

Shares have rocketed 291% higher in the past three years (as of Oct. 6). Despite that monster gain, here's one brilliant reason investors should be excited about Carnival stock.

Carnival Cruise Line ship at sunset with lights on.

Image source: Carnival.

Carnival is seeing unbelievable demand

There is clearly still so much demand for cruise travel, which is why investors should be upbeat. During the fiscal 2025 third quarter (ended Aug. 31), Carnival's revenue increased 3% year over year to $8.2 billion. This was the "tenth consecutive quarter of record revenues," said CEO Josh Weinstein.

The company also collected $7.1 billion in customer deposits, a Q3 record. And it reported record net yields and operating income.

There are tailwinds that can keep benefiting the business

It's easy to be optimistic about Carnival's growth trajectory over the long term. The leadership team believes the company provides an extremely compelling value proposition when compared to land-based travel options. This could remain a key advantage as consumers look to get more bang for their buck.

Additionally, the cruise industry in general is not only attracting younger customers, but also bringing on first-time cruise travelers. This is a clear indication of an expanding opportunity set, which can support durable demand.