Cruise bookings trend positively in the US and much of Europe
New ships – as well as promotions, convenience and variety of destinations – are the main factors driving consumer demand, with current bookings for 2H 2018 and 2019 trips up vs. last year in the US and in most countries surveyed in Europe. Spain was the outlier, with mixed bookings.
Grassroots® Research interviews with cruise travel agents/specialists in the US and Europe who sell cruises from large brands revealed that current cruise bookings for 2H 2018 and 2019 trips are up compared to the same time last year for 2017 trips for 100% in the UK, 87% each in France and Germany, 80% in the US, and 67% in Italy, while they are mixed in Spain, with 40% citing flat and 33% up. As to current cruise pricing for 2019 trips compared to the same time last year for 2018 trips, sources said it is up an average 5% in the US, 4% in Germany, and 3% each in Italy and the UK, while it is flat in France and Spain.
According to sources, the primary factors positively affecting cruise demand this year are the availability of new ships in the US, Germany, Spain and the UK; promotions and better offers/packages in France, Germany and the UK; convenience travel in France, Italy and Spain; the variety of destinations in France, Spain and the UK; a better economy in the US and Spain; and the range of services in Italy. However, the primary factors negatively affecting demand reportedly are mass-tourism ships in France, Germany, Italy and Spain; pricing in France and Italy; hurricanes, government travel restrictions, terrorism and Mexico’s political issues in the US; and exchange rates and Brexit in the UK.
Regarding the most popular cruise destinations currently, sources said they include the Caribbean, Alaska and Europe for clients in the US; the Mediterranean and the Caribbean in France; the Mediterranean, Northern Europe and the Baltic Sea in Germany; the Mediterranean, the Caribbean, Northern Europe, the Middle East and the United Arab Emirates in Italy; the Mediterranean, the Greek Islands, fjords and the Baltic Sea in Spain; and the Mediterranean and the Caribbean in the UK.
Grassroots® Research is a division of Allianz Global Investors that commissions investigative market research for asset-management professionals. Research data used to generate Grassroots® Research reports are received from independent, third-party contractors who supply research that, subject to applicable laws and regulations, may be paid for by commissions generated by trades executed on behalf of clients.
Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Bond prices will normally decline as interest rates rise. The impact may be greater with longer-duration bonds. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This document does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security.
The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted. This material has not been reviewed by any regulatory authorities. In mainland China, it is used only as supporting material to the offshore investment products offered by commercial banks under the Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations.
This document is being distributed by the following Allianz Global Investors companies: Allianz Global Investors U.S. LLC, an investment adviser registered with the U.S. Securities and Exchange Commission; Allianz Global Investors Distributors LLC, distributor registered with FINRA, is affiliated with Allianz Global Investors U.S. LLC; Allianz Global Investors GmbH, an investment company in Germany, authorized by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin); Allianz Global Investors (Schweiz) AG, licensed by FINMA (www.finma.ch) for distribution and by OAKBV (Oberaufsichtskommission berufliche Vorsorge) for asset management related to occupational pensions in Switzerland; Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No. 199907169Z]; Allianz Global Investors Japan Co., Ltd., registered in Japan as a Financial Instruments Business Operator [Registered No. The Director of Kanto Local Finance Bureau (Financial Instruments Business Operator), No. 424, Member of Japan Investment Advisers Association and Investment Trust Association, Japan]; and Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan.
Sales of e-bikes surge in Europe for sports, leisure and even short commutes
While sales of conventional bicycles were mixed in 3Q 2018 year-to-year, sales of e-bikes increased in all countries surveyed, and all expect the e-bike market to grow in the next 12 months – although opinions were mixed as to whether e-bikes are cannibalizing the sales of conventional bicycles or whether they represent a new segment.