Cruise Industry Overcapacity On The Horizon
One way to gain confidence in the pricing power of a specific type of business is to understand factors like spare capacity. Another way is to study the history of price changes in response to changes in supply and demand. In a post-COVID world, overcapacity is likely to haunt the cruise industry as capacity outpaces demand. It will have a depressing impact on stock prices unless much more capacity is removed in the years ahead.