The travel business, a perfectly agreeable pursuit when everything runs smoothly, has lately found itself attracting the attention of those energetic chaps known as activist investors. These individuals, you see, possess a keen eye for businesses that have, shall we say, taken a bit of a tumble, and a firm belief that a brisk shake-up is precisely what’s needed. Investing alongside them can, on occasion, prove rewarding, though one must always approach such ventures with a healthy dose of skepticism. Let us, therefore, examine two travel concerns that have recently become the focus of these industrious meddlers.
Norwegian Cruise Line
Mr. Paul Singer, a name whispered with a certain respect in financial circles, has taken a rather substantial slice – a full ten percent, if you please – of Norwegian Cruise Line. He’s dispatched a letter to the board, pointing out, with admirable directness, that the company’s execution has been less than stellar, and its cost controls, well, let’s just say they could benefit from a spot of tightening. However, he perceives a golden opportunity for valuation recreation – a rather optimistic phrase, one might add.
Elliott, Mr. Singer’s firm, is proposing a new board, brimming with travel experience, and a CEO and executive team with a bit more pep in their step. The company has, to be fair, appointed a new CEO this month, a gentleman previously at the helm of Subway Restaurants. One hopes he possesses a knack for navigating choppy waters, both literal and financial.
The fund manager suggests the company’s strategy has been, shall we say, meandering, not quite in tune with the prevailing industry currents or the whims of the discerning traveler. Despite possessing a modern fleet and a rather splendid private island, it appears a few cogs have been slipping. He believes, with a confidence that is either admirable or reckless, that these errors are easily rectified and that the stock possesses a solid upward trajectory. He projects a rather ambitious $4 billion in adjusted EBITDA by 2027. A cheerful thought, though one must remember that projections are, at best, educated guesses.
It’s an interesting notion, this. Norwegian is, after all, the smallest of the major cruise operators, with a leaning towards the more luxurious end of the market. This tends to result in a rather generous staff-to-guest ratio, which, while agreeable for the passengers, does rather impact the bottom line. Debt is, naturally, a concern, but with the prevailing industry winds at its back, it may well be reduced, making the stock a potentially attractive, if slightly risky, proposition. A dash of deleveraging never goes amiss.
TripAdvisor
Norwegian wasn’t the only travel concern to attract an activist’s gaze. Starboard Value has taken a nine percent position in TripAdvisor, and immediately delivered a rather pointed critique of the platform’s slow adoption of artificial intelligence. They suggest this is causing the company to squander its lead in the space – a rather strong accusation, one might think. They intend to nominate their own board members and suggest that TripAdvisor should, in fact, put itself up for sale. A bold maneuver, indeed.
TripAdvisor has always possessed a rather intriguing user base and platform, but the company has, over the years, attempted numerous strategies to monetize it, with limited success. As a result, the stock has lost a considerable portion of its value – roughly three-quarters over the past five years, and a staggering eighty percent over the past decade. A rather gloomy state of affairs, wouldn’t you agree?
With a market capitalization of just $1.2 billion, the company could, conceivably, find a buyer willing to improve the platform and unlock its potential. The stock is, admittedly, rather cheap, trading at a forward P/E of 7.5. Investing alongside Starboard might, therefore, prove worthwhile, though one must remember that the risk of disruption by AI is considerable, and a successful acquisition is far from guaranteed. It’s a gamble, you see, and one should always approach a gamble with a healthy dose of skepticism and a firmly closed wallet.
Read More
- 2025 Crypto Wallets: Secure, Smart, and Surprisingly Simple!
- Gold Rate Forecast
- Brown Dust 2 Mirror Wars (PvP) Tier List – July 2025
- Banks & Shadows: A 2026 Outlook
- Gemini’s Execs Vanish Like Ghosts-Crypto’s Latest Drama!
- ETH PREDICTION. ETH cryptocurrency
- The 10 Most Beautiful Women in the World for 2026, According to the Golden Ratio
- Gay Actors Who Are Notoriously Private About Their Lives
- 9 Video Games That Reshaped Our Moral Lens
- Uncovering Hidden Groups: A New Approach to Social Network Analysis
2026-02-24 05:12