Arnold Donald, President and CEO of Carnival Corporation, has said that the business is not recession proof, but has proven to be recession-resilient time and again, speaking on the company’s second quarter and business update call on June 24.

“As we have seen in prior cycles, even in downturns, employed people take vacations,” he said. “And that’s even more true in today’s environment where people prioritize spending on experiences over spending on things.

“Cruise remains an especially appealing vacation option during downturns because of its compelling value proposition relative to land-based alternatives. Also, there is pent-up demand for travel globally which is a powerful tailwind.”

Donald said there is also pent-up demand that will help.

David Bernstein, CFO, said: “Not every recession is the same. And we are currently in a very strong labor market. And given that, if people have jobs and they feel comfortable in their jobs, they’re likely to need a vacation. And remember, vacations are no longer a luxury, they’re a necessity in today’s world. So I think we will do very well. As Arnold said, we are recession-resilient and we’ll do very well in a recessionary environment.”