Carnival Travel Company Shows Resilience Amid Economic Concerns

Despite producing impressive gains in recent quarters, tourism operator Carnivals stock remains below its pre-pandemic levels. Because of the high interest rates and worries about a possible recession, investors are reluctant to purchase the stock. However, Carnivals business strength lies in its older, more affluent customer base, which is more resilient to inflation and potential recession. The company has great insight into bookings, with approximately 50% of demand for the next 12 months already booked and 55% of guests being repeat customers. Carnivals record second-quarter revenue of $5.8 billion rose by 18% year over year, but its high interest expenses have a significant impact on its earnings. Despite these challenges, Carnivals operating income has been steadily increasing, but its high interest