Cruise Lines 2019 Q4 Breakdown: By the Numbers

Posted on 25 February, 2020 by Spacejunkie2

Seabourn, Royal Caribbean and AIDA Ships in Antigua

Cruise Industry News takes a look at the financial performance of the “big three” following the final quarter of 2019.

Takeaways:

While gross revenue was up for Q4 2019 for the three publicly-traded cruise companies, increased operating expenses led to reduced operating income, net income and net income per passenger day, compared to Q4 for the previous year.

Net revenue per passenger day was also down year-over-year for Carnival Corporation, up noticeably for Royal Caribbean and up slightly for Norwegian.

Gross revenue per passenger day was significantly up for all three companies, including onboard spending, with gross ticket revenue per day also up for Royal Caribbean and Norwegian, but down for Carnival.

Carnival saw the biggest difference between gross and net onboard revenue: more than $25, making it flat with last year, while Royal had nearly a $12 drop and Norwegian a little more than $10, and up from last year.

Both Carnival and Royal Caribbean saw a decrease in fuel costs year-over-year while Norwegian saw its fuel spend to go up.

Carnival cited the regulatory change preventing travel to Cuba, geopolitical events in Arabian Gulf, Hurricane Dorian, an unscheduled drydock, and multiple shipyard delays. Royal cited the Oasis drydock mishap, Cuba and Hurricane Dorian, and Norwegian also cited Cuba and Dorian.

Because of the fleet mix, Norwegian continued to generate the highest gross and net ticket and onboard spend revenue.

Cruise Industry Financial Tracking

The Cruise Industry Financial Tracking Report provides an in-depth look into the financial metrics of the leading cruise companies. Learn more.

Included: Carnival, Royal Caribbean, Norwegian, MSC, Star/Genting, Royal Olympic, P&O Princess, Regent, American Classical Voyages and Commodore.

Key metrics include revenue, operating expenses, operating income and net income, as well as those metrics on a per passenger day basis. We also look at EPS, fleets, berths and passenger cruise days.

Coronavirus: Royal Caribbean Cruises to deliver one million surgical masks to China

Posted on 17 February, 2020 by Spacejunkie2

Image result for spectrum of the seas

Royal Caribbean Cruises will deliver a million protective surgical masks into China as the country battles to contain the coronavirus outbreak.

Richard Fain, the chairman and chief executive of Royal Caribbean Cruises, said the cruise company would work with suppliers to deliver the N-95 protective masks to China for the country’s government.

Face masks are reportedly selling out in cities across Asia as concerns over the virus grow.

More than 1,300 people are known to have died from the virus, including six health workers in China.

Local authorities in the country have reportedly struggled to provide protective equipment such as respiratory masks and goggles in hospitals, according to the BBC.

Fain said: “We admire the all-out efforts of the Chinese government and people to address this crisis and we want to bring our resources to bear to help their efforts.”

Royal Caribbean International president and chief executive Michael Bayley said the line would move a ship to China to carry out a series of complimentary sailings to thank medical personnel once the virus outbreak had ended.

Royal has also revealed that Spectrum of the Seas will offer complimentary cruises sailing from Sydney for Australia’s first responder community and Celebrity Millennium will provide ex-US sailings for firefighters in California following the wildfires.

Royal Caribbean latest to warn of coronavirus profit impact

Posted on 14 February, 2020 by Spacejunkie2

Image result for royal caribbean ships in china

The wonder of the Seas due for China deployment 2020

Royal Caribbean Cruises has joined larger rival Carnival Corporation in warning of the potential “material” financial impact of the ongoing coronavirus outbreak.

The world’s second-largest cruise company has now cancelled a total of 18 sailings in south-east Asia and also modified several itineraries as a result of travel restrictions in place and “related circumstances.”

The number of cancelled cruises has risen from the eight out of China reported by the company last week.

RCC also reported “softer bookings” across the broader business, not just Asia.

It is in regular communications with global health authorities after China and other countries moved “aggressively” to contain the spread of the virus.

Like other cruise firms, the owner of brands such as Royal Caribbean International, Celebrity Cruises, Silversea and Azamara, has implemented measures to protect passengers and crew.

These include denying boarding to those that have travelled from, to or through mainland China or Hong Kong in the past 15 days and performing mandatory specialised health screenings on at-risk passengers and crew.

The company “is assessing the developments constantly and will update these measures as needed”.

RCC added: “Taken together, these measures have an estimated impact on the company’s financial performance for 2020 of approximately $0.65 per share.

“While not currently planned, if the company was to cancel all of its remaining sailings in Asia through the end of April, it would impact 2020 financial performance by an additional $0.55 per share.

“There are still too many variables and uncertainties to make a reasonable forecast for 2020.

“While the early impact due to concerns about the coronavirus is mainly related to Asia, recent bookings for our broader business have also been softer.

“If the travel restrictions and concerns over the outbreak continue for an extended period of time, they could materially impact the company’s overall financial performance.”

Chairman and chief executive Richard Fain said: “It is important that every organisation acts responsibly, and we have already taken aggressive steps to minimise risk through boarding restrictions and itinerary changes.

“Our shipboard and shoreside teams have been working tirelessly through these circumstances and I want to thank them for all of their extraordinary efforts. We appreciate our responsibility to our guests and to each other, and our focus on public health is unwavering.”

Carnival Corporation, owner of quarantined ship Diamond Princess in Japan after an outbreak of coronavirus on board, was the first to warn of a “material impact” on its financial results.