Carnival says global bookings 20% ahead of last year at lower prices

Since January, booking volumes at Carnival Corp & plc, the Anglo-American cruise shipping group, for the remainder of the year are running well ahead of last year at lower prices, but the booking window is gradually lengthening, the company said in a statement.

At this time, cumulative advance bookings for the remainder of 2014 are ahead of the prior year at prices below prior year levels.

Group ceo Arnold Donald noted, “We have experienced a solid wave season, with booking volumes up almost 20 % globally surpassing last year’s cumulative advance booking levels, albeit at lower prices.”

“Many guests are booking further in advance, which increases visibility and builds confidence that yield comparisons will turn positive in the second half of 2014. Increased interest across our brands is an encouraging indication that our message is resonating as consumers recognize the strong value proposition and exceptional vacation experiences we provide.” 

Carnival Corp & plc first quarter $15 million net loss smaller than forecast on Europe, Carnival Cruise Line recovery

Carnival Corporation & plc, the Anglo-American cruise shipping group, reported first quarter to 28 February 2014 U.S. GAAP net loss, which included net unrealised losses on fuel derivatives of $17 million, was $15 million, or $0.02 diluted loss per share. For the first quarter of 2013, U.S. GAAP net income was $37 million, or $0.05 diluted earnings per share.  Analysts in London and New York has forecast EPS negative by $0.08.

Revenues for the first quarter of 2014 were $3.6 billion in line with the prior year.

“Carnival Corporation & plc President and Chief Executive Officer Arnold Donald noted that first quarter non-GAAP earnings were better than anticipated in the company’s December guidance due to better than expected ticket prices for Carnival Cruise Lines and our continental European brands, as well as the timing of certain expenses. “

Donald noted, “We see progress with our continental European brands and continue to be pleased with Carnival Cruise Lines’ pace of improvement. Exciting product innovations and strategic marketing initiatives at Carnival Cruise Lines have driven strong close-in demand resulting in sequential improvement in year-over-year quarterly ticket prices for the brand.”

 

During the quarter, Carnival Cruise Lines announced an exclusive partnership with Dr. Seuss Enterprises to bring the beloved children’s brand and favorite characters to its fleet and the Carnival LIVE Concert Series, which brings the best in live music to the seas with a diverse roster of popular music artists including Jennifer Hudson, Lady Antebellum and Jewel.  These brand building initiatives complement the continued roll-out of its Fun Ship 2.0 product enhancement program, as well as ongoing travel agent outreach and the unprecedented Great Vacation Guarantee. In addition, Carnival Cruise Lines was the national cruise line advertiser of the Sochi 2014 Olympic Winter Games, with its creative “Bobslide” campaign which targeted the family segment and furthered the brand’s new marketing campaign launched last fall.

 

 

Mitsubishi to book heavy loss from AIDA Cruises’ two newbuildings

Mitsubishi Heavy Industres., the Japanese shipbuilder, will reportedly book a heavy loss from an order for two 124,500 gross ton cruise ship it won in 2011 from IDA Cruises, the German unit of Carnival Corp & plc, news reports say.

“The company also said that, while it would book an extraordinary loss of 60 billion yen from its cruise ship business, it would still be able to achieve its 150 billion yen net profit projection for this financial year,” the Reuters news agency reports, referring to Mitsubishi Heavy Industries.

Cruise Business Online calculated at the time that the Japanese company agreed to build the ships at about €10,000 to €15,000 per berth cheaper than newbuilding orders placed with European builders at the time, indicating a discount of up to 10%, figures show.

On 3 August 2011, AIDA Cruises said, it had signed an agreement with Mitsubishi Heavy Industries in Japan to build two cruise liners of 124,500 gross tons each, with accommodation for 3,250 passengers. The ships are due for delivery in March 2015 and March 2016 and they will cost about €140,000 per lower berth each, AIDA Cruises said in a statement

AIDA’s 3,250 passenger vessels contracted in Japan will cost about €140,000 per lower berth. By comparison, the company agreed to pay €150,000 per lower berth on a 71,300 gross ton ship ordered at Meyer Werft in Germany last year. The ship will have 2,192 lower beds.

The most expensive contract in per berth terms of recent time has been an order Royal Caribbean International placed with Meyer Werft for a 158,000 gross ton Project Sunshine – since renamed the Quantum Class - vessel Quantum of the Seas with 4,100 lower berths: it will cost €170,000 per lower berth to build. The brand is part of Royal Caribbean Cruises Ltd group.

Princess Cruises and P&O Cruises, both parts of the Carnival Corp & plc group and sister companies of AIDA Cruises, agreed to pay €155,000 per lower berth for two and one 143,000 gross ton newbuilding at Fincantieri, respectively. All three ships will have 3,600 lower berths. Royal Princess, first of the two Princess ships, has since been delivered, while the second one will be named Regal Princess. The P&O Cruises’ ship will be called Britannia.

Norwegian Cruise Line that ordered two 143,500 gross ton newbuildings at Meyer Werft last year got their 4,000 passenger vessels at €150,000 per lower berth. These have since entered service as Norwegian Getaway and Norwegian Breakaway

Mitsubishi built two ships for Princess Cruises – Diamond Princess and Sapphire Princess – early in the previous decade, but has not won cruise liner orders since then.