We’re betting there are a few champagne corks being popped at Carnival Cruise Line’s corporate headquarters, as today’s first-quarter earnings report was better than expected… and the overall message seemed to be, to borrow a phrase, “The future’s so bright, we have to wear shades.” After all, they recently became the first US-based cruise operator in more than 50 years to be given permission to sail to Cuba (with their Fathom brand), and the coming months will see the arrival of the highly-anticipated Carnival Vista. But let’s take a look at the soundbytes that came out of this development… and then translate them into what it means to you, the consumer!
What They Said: “Our ongoing guest experience innovations coupled with our increasingly effective marketing and communication efforts have driven additional demand for our brands,” said Carnival’s president & CEO, Arnold Donald, “resulting in a strong booked position.”
What That Means: Thanks to updates and innovations, as well as strong advertising campaigns, a whole lotta people have booked cruises in the coming months.
What They Said: “The lower levels of inventory remaining for sale for the balance of the year, particularly for our peak summer period, positions our brands well for continued revenue yield growth and builds confidence in our full-year earnings forecast,” said Donald.
What That Means: They’ve gotten a whole lot of people to book months in advance — no doubt thanks to the reduced-deposit offers — and therefore can be fairly assured that they’ll sail through the rest of the year (pun intended) without hitting any financial icebergs.
What They Said: “At this time,” read a corporate release on the earnings, “cumulative advance bookings for the remainder of 2016 are well ahead of the prior year at slightly higher prices.”
What That Means: Even though we’ve raised the prices a bit, people are still booking like crazy.
What They Said: “Since January,” continued the release, “booking volumes for the remainder of the year are running ahead of last year’s historically high levels at higher prices.”
What That Means: Give that they are selling more cruises at a higher price, don’t expect to see any major deals being offered in the coming months!