Tag Archives: royal caribbean cruises

For close-in bookings, Carnival losing pricing battle

Posted on by
Reply

For close-in bookings, Carnival losing pricing battle

By Tom Stieghorst
In a new report, Jeffries International analyst Ian Rennardson says cruise pricing slipped in March, with the most dramatic decline at Carnival Corp.

For cruises in the next three months, prices are 2.1% lower than at this time last year, with increases at Royal Caribbean Cruises Ltd. (up 7.7%) and Norwegian Cruise Line (up 7.1%) more than offset by a drop at Carnival Corp. (down 8.9%).

The outlook is more positive for cruises booked four to 12 months out, with prices trailing last year by 1.4% in March, compared with 2.1% in February. For cruises booked four to 12 months out, Carnival pricing in March was down 0.7%, RCCL down 3.3% and Norwegian up 4.7%.

The report is based on a Cruise Market Watch database that tracks 190 ships and 9,000 annual cruises.

Rennardson said the March results are disappointing for Carnival.

“We are becoming more concerned that pricing for CCL over the next 12 months remains well below our 0% forecast as we estimate that 30%-50% of the all-important Q3 capacity has been sold at this point,” the report said.

“We are now lapping the easy pricing comparisons, and there is less and less time to make up the shortfall — pricing needs to turn sharply positive, and soon, if estimates are to be met.”

Costa accident hurts Royal Caribbean’s booking levels

Posted on by
Reply

Costa accident hurts Royal Caribbean’s booking levels

By Donna Tunney
The Costa Concordia accident on Jan. 13 has had a “significant impact on bookings in the near term,” said Royal Caribbean Cruises Ltd. in its 2011 financial report on Thursday.

RCCL’s U.S. brands are Royal Caribbean International, Celebrity and Azamara.

“Overall booking volumes from North America have fallen by low to mid-teen percentages versus same time last year for the last few weeks. In Europe, where media coverage hasbeen more extensive, the decline has been higher, though results vary significantly by country. In aggregate, the company’s other markets, including Asia-Pacific and Latin America, are down slightly,” the company stated.

The impact on bookings has been greatest in the first three quarters and “wanes as the year progresses,” the company said.

RCCL, the world’s second-largest cruise operator after Carnival Corp., said there has been “no material change” in cancellation activity, but that new bookings have been affected.

Carnival Corp., in a filing to the Securities and Exchange Commission on Jan. 30, reported that booking levels across its brands, not including Costa, had dropped by a “mid-teen” percentage.

RCCL’s net income for 2011 was $607.4 million, up from $515.7 million in 2010.

Revenue rose to $7.5 billion, up from $6.8 billion.

For the fourth quarter, net income was $36.6 million, up from $31.9 million in 2010. Revenue increased to $1.8 billion, up from $1.6 billion. Net yields increased 3.5%.

To find your perfect cruise