Florida, Port of Miami, row of cruise ships docked, not essential due to coronavirus.
Jeff Greenberg | Universal Images Group | Getty Images
Throughout the coronavirus pandemic, tour guides have placed their hopes on a Covid-19 vaccine that will save their industry, which has suffered the aftermath of the health crisis.
The following news Monday from PfizerShow vaccine data more than 90% effectiveness Among those attending with no prior infection, CEOs of major cruise lines and hotel operators hailed the breakthrough.
“TripAdvisor has long believed that once a vaccine becomes widely available, travel will bounce back. Today’s Pfizer news is a welcome step in the right direction,” said Steve Kaufer, CEO of TripAdvisorsaid CNBC in an email.
TripAdvisor shares rose 21.67%.
Tour guides hope that an effective vaccine will reduce the amount of time travelers are comfortable when they are back on the road.
“This is a very positive development for the world and of course for our company and brands, as well as the cruise industry. It is too early at this point to determine the impact this may have on conditional sail orders in the US , if available ” carnival wrote in an email to CNBC.
Its shares rose nearly 40% on Monday, Carnival’s best day as a public company. It went public in 1987.
Richard Fain, CEO of royal caribbeanhas often called a vaccine the “ultimate weapon” against Covid-19. Royal Caribbean rose nearly 29% for its best day since March.
In the meantime, the cruise lines are working around the clock, setting up test facilities for the entire crew, and running simulated trips using their new Covid protocols. Once the CDC deems the security protocols appropriate, it will give the green light. Carnival, Royal Caribbean, and Norwegian Cruise Line have suspended US sailing for the remainder of 2020.
Norwegian cruise line reports quarterly profit after the bell on Monday, where shareholders want to know whether a start date in January 2021 is feasible.
Analysts also wonder whether a new administration will be led by the president-elect Joe Biden will lead to different protocols for the cruise industry. The industry was supported by the vice president Mike Pence, the CDC reportedly overruled the decision to extend the cruise ban until February 2021. The CDC lifted its no-sailing ordinance at the end of October and issued a framework for a conditional sailing ordinance.
Patrick Scholes, managing director of Truist Securities, said he believes a Biden administration “is more likely to follow the CDC’s recommendations when it comes to health issues.”
The hotel operators also took part in the market rally on Monday Marriott on pace for its best day since March.
Online travel giant Expedia is up 20%, the largest percentage increase since 2012. It closed 24.6% at a new 52-week high.
Investors are confident that having access to a vaccine will build traveler confidence and lead to a surge in bookings over the next year. Prior to the Pfizer vaccine news, Marriott CEO Arne Sorenson said on the company’s earnings call last Friday, “We will see significantly more bookings when these vaccines go into effect.”
Postings CEO Glenn Fogel said on CNBCs “Close bell” that he was optimistic about the impact of Pfizer and the German partner BioNTechpositive results. He warned, however, that the travel industry still has a “long, long way to go” before it returns to pre-pandemic levels.
“There is a lot of uncertainty out there and I am not going to change what we said last week. It will take time,” said Fogel. “We believe it will be years, not quarters, for us to recover” through 2019.
Booking Holdings, which includes brands like Booking.com and Priceline.com, closed more than 18% on Monday.
– – CNBCs Kevin Stankiewicz contributed to this report.