In a note, the brokerage said the average age of cruisers for some major operators has been getting younger, with Royal Caribbean Cruises Ltd. seeing a 30% increase in millennials in the past two years.
'But we don't think the demand growth is from just one demographic. We believe the dynamic of improved cruise demand may be tied to a broader consumer desire for accumulating experiences rather than objects,' UBS analyst Robin Farley said.
UBS pointed to similar indications from the lodging sector, with hotel operators flagging the strength in leisure travel.
'Cruise lines may be the equivalent of investing purely in the leisure segment of hotels, with the added bonus of tax structure, high barriers to entry and the ability to move assets to markets with the highest demand,' Farley said.
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