Carnival Corporation to Trim Down Cruise Newbuilding Pace

Posted on 27 December, 2022 by Spacejunkie2

Carnival Corporation will decelerate its new building pace in an effort to not only moderate supply growth, but keep spending down, according to Josh Weinstein, president and CEO, speaking on the company’s year-end and fourth-quarter earnings call.

Weinstein said that the company didn’t expect to take delivery of any new ships in 2026, and beyond that, would only build two ships a year going forward.

“Going forward, we are committed to using our expected cash flow strength to repair the balance sheet over time, and we’ll be disciplined and rigorous in making newbuild decisions accordingly,” he said.

“We have just four ships on order through 2025, plus our second incredible Seabourn luxury expedition ship to be delivered in 2023.

“This is our lowest order book in decades,” Weinstein continued. “We don’t expect any new ships in 2026 and anticipate just one or two new builds each year for several years thereafter.”

Left on the Carnival orderbook through 2025 are the Carnival Jubilee, Cunard’s Queen Anne, the Sun Princess, another Princess newbuild that has yet to be named and the Seabourn Pursuit.

No new builds are on order for the company’s other brands including Holland America Line, AIDA Cruises, P&O Cruises and P&O Cruises Australia. Carnival’s joint venture with China State Shipbuilding Corporation was not mentioned.

With more old ships exiting combined with recent deliveries and the upcoming new build schedule, the company expects about 25 per cent of its capacity to be what it considers new ships in 2023.

That means an eight-percentage point increase in balcony cabins across the fleet, and differentiated onboard experiences resulting in greater onboard revenue.

Carnival Corporation Cruise Brands Ramp Up Ad Spending

Posted on 24 December, 2022 by Spacejunkie2

Carnival Corporation is ramping up advertising spending across its portfolio of brands, according to President and CEO Josh Weinstein, speaking on the company’s year-end and fourth-quarter earnings call.

He said it was a move to support future demand.

“I’ve actively been working with each brand on their strategies and road maps,” Weinstein said. “As a result, I’ve authorized our brands to take a significant step up in advertising activities, including a nearly 20 per cent increase in our investment this past quarter over 2019, to elevate awareness and consideration and to drive demand for both the near and the longer term. This should be particularly impactful with those new-to-cruise, where we draw about one-third of our guests, as we position to take share from land-based alternatives.”

For example, Weinstein said that Princess Cruises would source more heavily in North America than in prior years due to source market disruptions elsewhere.

And the results have been good, Weinstein noted, with record Black Friday and Cyber Monday sales results at a number of brands.

“We think that advertising has a good amount to do with that, to really reach first-timers, generate awareness, generate consideration, and do so in a meaningful way. We’ve got great brands, and we’ve got tremendous brands, but we need to do a better job getting the voice out. And this is a good way to do it. And it helps not just us, it helps our trade partners, it helps the bookings across the board.”

Chinese Eye 80,000-Ton Cruise Newbuild

Posted on 29 November, 2022 by Spacejunkie2

n 80,000-ton cruise newbuild concept in China has obtained a China Classification Society in Principle approval certificate, a key item needed in moving forward with the construction process.

The ship was designed and developed by China State Shipbuilding Corporation (CSSC) and its CSSC Cruise Technology Development subsidiary.

CSSC announced last week that its homegrown domestic Chinese brand, in partnership with Carnival Corporation, will launch service soon under the name Adora Cruises.

While two 135,000-ton Vista-class new ships are slated for Adora Cruises, this 80,000-ton ship could also join the brand should construction commence.

According to a statement, the ship is 293.5 meters long and features a high proportion of balcony cabins with approximately 70 per cent of accommodations featuring a balcony.

Next, CSSC will complete the basic design of the ship and submit plans to the China Classification Society for final approval.