Where Carnival Corp. saved more and spent more in 2012
Carnival Corp., and Carnival Cruise Lines in particular, hang their hats on cost control. So it is instructive to take a look at where Carnival saved the most money in fiscal 2012.
According to Carnival’s profit and loss statement issued last week, it saved $169 million on commissions, transportation and other costs. That’s triple what it saved on tour operations ($50 million) and ten times what it saved on other shipping operations ($14 million).
Carnival paid $2.46 billion in commission and transportation in 2011, and $2.29 billion in 2012, a 6.9% decline. Tour expenses fell 24.5%, to $154 million. Other shipping operations were flat, dropping 0.6%.
All other expenses rose, including payroll, up 1.1%; onboard expense, up 10.3%; and fuel, up 6.8%. The biggest absolute increase in cost was for fuel, an additional $188 million.
It is always hard to sort out how much commission payments change from looking at the financial statements, because they are lumped in with air fares and other transportation costs. And looking at one year’s data, even if it is the most recent, doesn’t show a trend over time.
It may be worth noting, however, that the same expense line for commissions and transportation at the cruise industry’s other big publicly traded company, Royal Caribbean Cruises Ltd., shows a $10 million increase through the first nine months of 2012.
For travel agents, that’s a comparison that bears watching in the year ahead.
However, they didn’t count on the passing cruise vessel the Island Princess, which had been scheduled to head to the nearby port of Ocho Rios in Jamaica.
Ms Loren’s influence extends to suite number 16007, which can be found in the MSC Yacht Club – the exclusive section of the ship dedicated to an ultra-luxury experience. The ship’s godmother selected the rich palette of deep reds that are used throughout; the cabin features a set of specially designed lamps and the walls are decorated with photographs of Ms Loren in her most memorable roles. The final touch takes shape in a replica of her personal dressing table, where cabin guests will be able to prepare for glamorous gala dinners in true Sophia Loren style. The plush MSC Yacht Club library also features a collection of 20 of leave your locks looking shiny and radiant, meanwhile MSC’s first barbershop is happy to provide some masculine pampering for those gentlemen in need of a cut or shave. Divina is also the first in the fleet to offer Neophor, an anti-aging medical treatment, and her state-of-the-art fitness centre has welcomed the addition of a spinning centre and Arke equipment.
For finer dining, the fashionable Galaxy restaurant models itself on a 1950s Italian supper club. Floor to ceiling windows offer incredible views, and the menu evolves as the day progresses, offering plenty of options for a lazy brunch in the morning, a menu of Mediterranean-inspired dishes in the evening and a selection of cocktails at night, when the restaurant transforms into a starlit disco.
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