Carnival Corporation reports strong Q1 profits

Posted on 30 March, 2015 by Spacejunkie2

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 creates boutique cruises that include a ‘Throwback Seaday’

Posted on 6 March, 2015 by Spacejunkie2

Carnival Cruise Lines is redoubling its push for more interesting itineraries, creating a new cruise collection that has novel onboard features in addition to longer voyages.

Called “Carnival Journeys,” the cruises will feature more local food and entertainment options, fun “Carnival style” enrichment classes, more crew interaction and a “Throwback Seaday” in which the clock will be turned back to 1987.

“We want to create something really different in terms of the experience,” said Terry Thornton, senior vice president of itinerary planning.

So far, 26 cruises have been designated Carnival Journeys. They are all longer than the typical Carnival cruise and include some smaller, less visited ports. Thornton cited Bonaire; Martinique; Grenada; Dominica; and Ixtapa, Mexico, as examples. Cruises will run between 9 and 15 days.

Well under 1% of Carnival cruises will be in the program. Part of the idea is to give experienced cruisers and Carnival’s past guests something new to aspire to. “This will be a natural for people who have cruised before to come back to cruising and find something original and unique,” Thornton said.

For travel agents, Carnival Journeys offer the prospect of higher commissions than are typical for Carnival.

There are five components to the new onboard program. In “Authentic Eats,” Carnival will partner with local restaurants in ports of call to do onboard cooking demonstrations. There will be excursions to the restaurants and market tours with the chef.

“Local-tainment” will feature local bands either on or off the ship; “Academy of Fun,” will offer enrichment, but in a non-stuffy, entertaining way; and a “Throwback Seaday” will bring back the Baked Alaska dessert, the midnight buffet and white gloves on officers, as Carnival featured in 1987.

The fifth component is a heightened opportunity for interaction with the staff at all levels, and more chances to learn about shipboard life.

The first Carnival Journeys cruise is scheduled for Oct. 4 from New Orleans.
___

Correction: The first Carnival Journeys cruise will depart New Orleans, not Galveston as previously reported.

P&O Cruises takes delivery of ‘step change’ Britannia

Posted on 23 February, 2015 by Spacejunkie2

By Phil Davies

P&O Cruises new vessel Britannia is a “mega step change” for the company, according to chairman David Dingle.

Speaking as the ship was presented to the company by the Italian Fincantieri shipyard near Trieste, Dingle said the ship would propel the line forward to meet the needs of new and returning customers alike.

Before vowing that “Britannia will once again rule the waves”, Dingle said: “This not just a ship for Britain, it’s a ship for a new Britain. A more vibrant, more exciting Britain.”

Dingle congratulated Fincantieri for their hard work and said the partnership between the shipyard and Carnival had helped to shape the cruise industry.

“Cruising has become a vibrant expanding part of the mainstream holiday business and our two businesses, Fincanteiri and Carnival, as market leaders in our different industry sectors, have played a role in this.

“Taking delivery of a ship is just the beginning for now we must attract passengers to Britannia not only this year but for the next 30 years and we will, because we know it’s contemporary, groundbreaking ships which attract others into cruising.”

He said he believed the new ship would help push the number of UK cruisers to the two million mark, as well as showing that the “UK was an established part of Carnival’s continuing growth.”

Britannia is the fifth P&O Cruises ship to be built by Fincanteiri, and the largest ship built for the brand.