Tag Archives: Carnival Corporation

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.

MOL Plans Cruise Expansion, Newbuilds

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Seabourn Odyssey photo credit for Spacejunkie2 (Flickr)

With the purchase of the Seabourn Odyssey, MOL Group, which operates Mitsui O.S.K. Lines, Ltd. in the domestic Japanese market, plans to operate two ships in 2024, it said in a press release. Sales terms were not disclosed.

The Seabourn Odyssey will be renamed and sail alongside the Nippon Maru, according to the company, which has hired a new Senior Executive Advisor in Anthony Kaufman, who has extensive knowledge and expertise in the cruise ship business, having held key positions with Carnival, Holland America Group and Princess Cruises, where he played a major role in the development of the inbound and outbound markets in Japan.

In a press statement, MOL Group said it “positions the cruise ship business as a new growth area,” and plans to build an additional two new 600-guest ships.

The Seabourn Odyssey will join the fleet in 2024 after a refurbishment, the company said. A new name for the ship will be announced this summer, along with other details.

“By increasing the number of cruise ships operated by MOPAS to two, they will be able to significantly increase the number of departures and arrivals in various parts of Japan and globally, and will be able to provide a wider variety of itineraries and experiences that meet our customer’s needs,” the company said in a statement.

In the near term, MOL will open a “Wellbeing & Lifestyle Business” brand as well as a new “Cruise Business Innovation Project Unit.”