Carnival: ‘Fuel Surcharge Not Off The Table

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Carnival Pride passing the Seacombe Ferry in Liverpool photo credit Spacejunkie2

With fuel prices on the rise, a fuel surcharge is not off the table at Carnival Corporation, according to Josh Weinstein, president and CEO.

Cruise lines typically reserve a right to add a fuel surcharge to ticket pricing, should the price of oil go over a set amount. Most cruise companies have rarely used this option

“It’s certainly not off the table. We wouldn’t take anything off of the table. It’s not something we’re planning to implement in the near-term, although that could certainly change,” said Weinstein, speaking on the company’s third quarter earnings call.

“There are certainly considerations that have to be made about what’s the norm in society with the expectations of our customer,” he continued. “Obviously, you don’t go retroactively too. So you’re talking about forward bookings.

“But I wouldn’t take anything off the table. I would reiterate, though, even a fuel surcharge is temporary. And really, the one thing that we can do, no matter what, is use less fuel and that’s where our focus is. And we estimate it saved us about $375 million on the bottom line this year versus what our profile looks like in 2019 because of all those efforts.”

Carnival Corp Posts 109% Occupancy in Third Quarter

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P&O one of the Carnival Group, photo credit Spacejunkie2 (Flickr account)

Carnival Corporation’s nine brands enjoyed full ships in the third quarter of 2023 as the company delivered a profit of over $1 billion and record revenue.

The ships on average were 109 percent full. Cruise ship occupancy is calculated by having two people in each stateroom, bringing a ship to 100 per cent. Any additional guests, such as children, will push a ship over the 100 per cent mark.

The company said that the 109 per cent occupancy number was better than its own expectations and marked a return to historical levels, compared to just 84 per cent in 2022 and 113 per cent in 2019, the last normal year prior to the pandemic.

“On the European front, occupancy came in better than anticipated for Costa and AIDA, with both brands hitting 119 per cent occupancy in August. Not to be outdone, P&O Cruises achieved its highest occupancy in over a decade,” said Josh Weinstein, president and CEO, on the company’s third-quarter earnings call.

“And so I can’t say that their yields were higher. But I can tell you that their occupancy is back, and they are well on their way, and that’s absolutely as expected,” said Weinstein, commenting on the company’s P&O brand.

Trinidad Gears Up for a Busy Cruise Season

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Trinidad is gearing up for an increase in visitors during the upcoming 2023-24 cruise season.

The cruise season begins in November and typically runs through April the following year. According to a statement, initial projections indicate that approximately 88,000 passengers and 30,000 crew will visit Trinidad, representing an estimated 81 per cent increase in passengers when compared to the last season. During the previous season, Trinidad welcomed a total of 29 calls and 48,243 passengers.

Tourism Trinidad CEO Carla Cupid said: “Employment opportunities flourished as the cruise season unfolded. Local guides, tour operators, taxi drivers, craft vendors, and service personnel played a pivotal role in ensuring an unforgettable experience for cruise passengers.

“This surge in employment not only provided income for individuals but also fostered skills development and contributed to the growth of the local tourism sector.”

This year, the first ship to visit Trinidad will be the Seabourn Pursuit, scheduled to arrive on October 11, 2023.