Carnival Corporation reports strong Q1 profits

By Hollie-Rae Merrick

Carnival Corporation reports strong Q1 profits Carnival Corporation has reporter stronger-than-expected earnings for the first quarter of 2015.

The cruise company made a net profit of $49 million, or $0.06 diluted earnings per share in the last quarter, compared to a net loss of $20 million in the last year period.

It attributed its strong earnings to a rise in onboard revenues which were up 8% compared to 2014. Onboard spending rose to $889 million from $850 million, although revenue from ticket prices dropped around 3.5%.

Net revenue yields increased 2% in the first quarter of 2015, better than the company’s December guidance of up to 1%. However, gross revenue yields dropped 3.1% due to changes in currency exchange rates.

Looking ahead to 2015, Carnival Corporation said advance bookings were ahead of 2014 and at higher prices.

Chief executive and president Arnold Donald said: “The year is off to a strong start achieving significantly higher earnings than the prior year and our previous guidance.

“Our onboard revenue initiatives drove particularly strong improvement in the first quarter with onboard yields more than 8% higher than prior year (constant dollar).

“We are experiencing an ongoing improvement in underlying fundamentals based on our successful initiatives to drive demand. Our efforts to further elevate our guest experience are clearly resonating with consumers and, notably, improving the frequency and retention of our loyal guests.”

Donald said he believed results had improved off the back of “ongoing public relations efforts and creative marketing campaigns” designed to attract new customers. He referenced the success of the company’s Super Bowl advertising campaign which generated five billion impressions online before the ad had even run on TV.

He added: “Consistent with many global companies, the strengthening of the US dollar has hampered our full-year earnings expectations, masking the 3% to 4% (constant currency) yield increase our collective brands are expecting to achieve.

“Our successful initiatives to drive both ticket and onboard revenue yields have improved our financial performance and we remain on track toward our goal of achieving double-digit return on invested capital in the next three to four years.”

Folllowing a strong start to the year with bookings, Carnival said it expects full-year 2015 net revenue yields to increase 3% or 4% compared to 2014 and one point better than previous guidance for the year ahead.

However, changes in currency exchange rates means full-year 2015 earning expectations have been reduced by $219 million. Carnival said this was offset by an improvement in the company’s operating performance.

Carnival Triumph headed to New Orleans in 2016

Carnival Triumph

Carnival Cruise Line will increase New Orleans capacity when the 3,143-passenger Triumph is transferred from Galveston to replace the 2,052-passenger Elation in the spring of 2016.

The Triumph will sail four- and five-day Mexico cruises from Galveston, starting April 4, 2016. The other ship in New Orleans, the 3,652-passenger Dream, sails seven-day cruises.

The Elation will shift from New Orleans to Jacksonville, Fla., and the Fascination will move from Jacksonville to San Juan. The Elation will sail year-round four- and five-day Bahamas cruises, and the Fascination will sail seven-day Caribbean voyages.

As previously reported, Below is the 12th Feb. article.

Carnival Breeze and Liberty will sail from Galveston

To make way for the new Carnival Vista when it is deployed in Miami in November 2016, Carnival Cruise Line will shift the Carnival Breeze to Galveston, Texas.

Also, Carnival will position the Carnival Liberty in Galveston in 2016. It has just repositioned Carnival Freedom to Galveston, where it is aggressively courting new business.

“Miami and Galveston are among our most popular points of embarkation, and deploying our newest, most innovative ships to these home ports speaks volumes about our confidence in growing these markets,” said Christine Duffy, Carnival’s president.

The Carnival Triumph and Magic, currently sailing from Galveston, will be redeployed with details to be announced at a later date.

Prior to the start-up of year-round service from Miami, Carnival Vista will operate a pair of voyages roundtrip from New York, beginning with a three-day cruise Nov. 4-7, 2016, followed by an 11-day voyage departing Nov. 7 and visiting Grand Turk, San Juan, St. Thomas, Antigua and St. Maarten.

Carnival Vista will then offer an 11-day transit cruise from New York to Miami from Nov. 18-29, with calls at Grand Turk, Bonaire, Aruba and St. Maarten.

Its first cruise from Miami will be a four-day cruise to Grand Turk, departing Nov. 29. Thereafter it will do alternating six- and eight-day Caribbean itineraries, mixed with a few one-time, one-off voyages, Carnival said.

A sea of changes await cruise passengers this year

Quantum of the Seas

Royal Caribbean worked with O3B, a company that brings Wi-Fi to developing countries, to launch fast, cheap Internet access on Quantum of the Seas. (Jonathan Atkin / PR Newswire)

By Dave Jones

Cruises Royal Caribbean International Mamma Mia! (musical) Dining and Drinking Lifestyle and Leisure Blue Man Group

Those are just some of the improvements you’ll find at sea in 2015. Along with getting bigger, ships are getting better, ushering in a new era of cruise ship as resort.

The insistence on formal attire and assigned seatings for dining has faded on some cruise lines. Today, you’re more likely to pack khakis than a tux or a ball gown, and meals are often on your schedule, not the ship’s.

The biggest change for the plugged-in passenger (and who isn’t connected these days?) is improved Internet access. At sea, access has been slow, expensive and not always reliable. Its sluggishness has kept travelers from uploading pictures efficiently (ouch, if you’re joined at the hip with, say, Instagram) and streaming videos.

Royal Caribbean worked with O3B, a company that brings Wi-Fi to developing countries, to launch faster, cheaper Internet access on Quantum of the Seas when it debuted in November, and the cruise line is rolling it out to Oasis of the Seas and Allure of the Seas. The line also worked with Harris CapRock in 2013 to improve the digital speed on the rest of the fleet as well as its Celebrity Cruises and Azamara Club Cruises brands.

In the spring, Viking Cruises launches the Viking Star with complimentary Wi-Fi. Although a few lines have offered free Wi-Fi as a bonus for frequent cruisers or a benefit in certain suites, this oceangoing line will offer it to everyone. (Maybe hotels will take notice?) These developments should have a ripple effect throughout the industry.

As for a different kind of consumption, cruise lines are increasingly letting passengers enjoy outdoor dining. Most ships have long offered casual dining by the pool but, come night time, most options have been indoors, a missed opportunity for those who want to enjoy balmy evenings in the Mediterranean or the Caribbean.

In the last couple of years, Crystal Cruises has added outdoor dining venues to ships that were in dry dock, and Norwegian Cruise Line is offering open-air tables as part of the Ocean Blue restaurant. Viking also is creating open-air options.

Entertainment is changing too. On some ships, the curtain is coming down on variety shows. Stage shows on large cruise ships are more often defined by partnerships with land-based production companies. Norwegian, for instance, is working with Blue Man Group and Burn the Floor (ballroom dancing with a Broadway flair). Norwegian also has partnered with the Grammy Awards and offers performances by Grammy winners and nominees on some journeys.

You’ll find abbreviated versions of Broadway musicals too: Norwegian offers “Legally Blonde” on Norwegian Getaway and “Rock of Ages” on Norwegian Breakaway; the line plans to launch “Priscilla: Queen of the Desert” in October on Norwegian Epic. Royal Caribbean stages “Chicago” on Allure of the Seas, “Cats” on Oasis of the Seas and “Mamma Mia!” on Quantum of the Seas; it will launch “We Will Rock You” on Anthem of the Seas in April.

As perhaps the ultimate in improvements, you now have a greater number of cabin choices. In days past, you could specify inside, outside, balcony or a suite. Nowadays, Norwegian, Royal Caribbean and Cunard offer special “studio” cabins for single travelers who previously would have been assessed a single supplement for a solo spot.

If you’re in a lower-category cabin where space can be snug, some cruise lines are using technology to create a more open feeling. Disney Cruise Line and Royal Caribbean have LED screens designed to look like windows that show a view from the bridge so you can see what’s going on outside.

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Cruise Tip of the Week

Check on newest amenities before you book

If you’ve fallen in love with a cruise line’s newest features — say, the skydiving simulator or robot bartenders on Royal Caribbean or the Guy Fieri-branded burger bar on Carnival — be sure to confirm before you book that your ship has the latest and greatest. Sometimes — but not always — lines retroactively add the most popular new features to older vessels. Check before you pay your deposit.

Happy Sailing!