Cars Not Boats 11-5-25

Summary

Becker Business Podcast — “Cars Not Boats” (11-5-25)

Host: Scott Becker
Date: November 5, 2025

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Episode Overview

In this episode of the Becker Business Podcast, Scott Becker delivers a concise but impactful update on recent developments in the travel industry, contrasting the resurgent fortunes of car rental companies—especially Hertz—with the sharp decline in cruise line stocks. With a conversational tone, Scott explores what these trends may indicate about U.S. travel patterns and market sentiment.

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Key Discussion Points and Insights

1. Celebrating Podcast Milestones

• Scott opens the episode by acknowledging an outstanding month in downloads and podcast rankings, expressing gratitude to his team.
  • Notable Mention: “A remarkable month of downloads and tremendous help from our team…” — Scott Becker (00:05)

2. Today’s Theme: “Cars Not Boats”

• The episode’s title is explained as a metaphor for recent stock performance in car rentals versus cruise lines.
  • “This seems like a ridiculous title and I agree with that. But the concept is as follows.” — Scott Becker (00:15)

3. Car Rental Sector Surges

• Hertz:
  • Hertz saw a dramatic midday stock surge, up about 40%, attributed to a return to profitability.
    • “Hertz knocked it out of the park, was up at midday about 40% on a return to profitability.” — Scott Becker (00:20)
  • Noted as a surprise given Hertz's recent history as a “laggard”—now achieving results not seen "in a very long time."
  • Scott suggests this success may be tied to an increase in domestic U.S. travel.
    • “I don’t know if that’s because people are doing more travel within the United States…” — Scott Becker (00:38)

4. Cruise Lines Sink

• Norwegian Cruise Line and Carnival Cruise Line experienced steep downturns in stock value:
  • Carnival Cruise Line stock fell about 9%.
  • Norwegian Cruise Lines dropped between 14 and 15%.
    • “Two of the big cruise lines, Norwegian American and Carnival Cruise Lines, both got slaughtered yesterday in the market.” — Scott Becker (00:28)
• The host uses playful nautical imagery:
  • “Both sank. To use a water term, they both had holes in the boats and sank.” — Scott Becker (01:05)

5. Implications and Closing Thoughts

• The contrasting fortunes highlight a possible shift: travelers might be favoring land-based, domestic travel (renting cars) over international or cruise-based vacations.
• Scott wonders aloud whether the cruise sector can recover.
  • “We’ll see if that rebounds.” — Scott Becker (00:42)

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Notable Quotes & Memorable Moments

• “Hertz knocked it out of the park, was up at midday about 40% on a return to profitability.” — Scott Becker (00:20)
• “Carnival Cruise Lines was down about 9%. Norwegian Cruise Lines was down about 14 or 15%.” — Scott Becker (00:30)
• “To use a water term, they both had holes in the boats and sank.” — Scott Becker (01:05)

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Timestamps for Key Segments

• 00:00 — 00:12: Introduction, podcast milestones, team shout-outs
• 00:12 — 00:20: Explanation of episode theme and title
• 00:20 — 00:38: Hertz’s performance and possible reasons for car rental gains
• 00:28 — 00:42: Cruise line stock declines and context
• 00:42 — 01:05: Reflections on what these dynamics indicate for business and travel sectors

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Takeaway

Scott Becker’s “Cars Not Boats” provides a quick snapshot of the divergent destinies in travel—celebrating car rental industry gains amid significant cruise line losses, and drawing attention to how these shifts might signal evolving traveler behavior in America’s post-pandemic landscape.

Transcript

[A]

This is Scott Becker with the Becker Private Equity and the Becker Business Podcast. A remarkable month of downloads and tremendous help from our team, Chanel Bunger, Grace Keller, Jeremy Core. A great, great month of downloads and rankings. So thank you for listening. Today's discussion is Cars, not boats. And so this seems like a ridiculous title and I agree with that. But the concept is as follows. In the markets yesterday, Hertz knocked it out of the park, was up at midday about 40% on a return to profitability. So Hertz and we talk about cars, we're talking rent to cars today. Hit numbers and stock results we've not seen in a very long time as Hertz has really been a laggard, but hit it out of the park yesterday. Second is boats. Boats we hear we're going to talk about cruise lines. Two of the big cruise lines, Norwegian American and Carnival Cruise Lines, both got slaughtered yesterday in the market. When I last looked at it, Carnival Cruise Lines was down about 9%. Norwegian Cruise Lines was down about 14 or 15%. So the basic concept is the car rental business going great. I don't know if that's because people are doing more travel within the United States, the boating and cruise business doing horrible. We'll see if that rebounds. But thank you for listening. Today on the Becker Business, the Becker Private Equity podcast. Again, today's discussion, cars, not boats. Hertz rebounded dramatically. The two cruise lines, Carnival Cruise, Norwegian Cruise, both got slaughtered. Both sank. To use a water term, they both had holes in the boats and sank. Thank you for listening to the Becker Business, the Becker Private Equity podcast, thank you very much.