CEO of Carnival Corp on CNN

Arnold Donald was just on CNN. He said prices are up, profit are up and bookings are strong. There you have it. . .right from the horses mouth.

Cruising is still a great value, in my humble opinion.

Sounds like standard talk from any company. Should they say OH BY THE WAY fares are down because we can't fill the ship?

Sounds like standard talk from any company. Should they say OH BY THE WAY fares are down because we can't fill the ship?

No, but if CEOs lie they are subject to stock manipulation charges from the SEC. "Spin" is one thing, but saying that average prices are up if they are actually down would get you in trouble.

Arnold Donald was just on CNN. He said prices are up, profit are up and bookings are strong. There you have it. . .right from the horses mouth.

 

Cruising is still a great value, in my humble opinion.

Unfortunately hardly anyone saw it. Have you seen how bad CNN ratings are.:eek:

Unfortunately hardly anyone saw it. Have you seen how bad CNN ratings are.:eek:

Seems fine to me... I missed seeing this as the Istanbul attack took precedence...

Seems fine to me... I missed seeing this as the Istanbul attack took precedence...

He was on CNBC also, just prior to the Istanbul attacks being reported. Aside from the complete horror of that situation, I would have been interested in his response to a question about the impact of the attack on the cruise industry.

He was on CNBC also, just prior to the Istanbul attacks being reported. Aside from the complete horror of that situation, I would have been interested in his response to a question about the impact of the attack on the cruise industry.

I like to know the answer to your question myself.

Tony

Unfortunately hardly anyone saw it. Have you seen how bad CNN ratings are.:eek:

So then it is not true????

No, but if CEOs lie they are subject to stock manipulation charges from the SEC. "Spin" is one thing, but saying that average prices are up if they are actually down would get you in trouble.

Very true.....:):):)

Bob

From the stock analysts session Tuesday morning.

Remember that the comments are in general representative of all of the various brands (CCL, Princess, HA, AIDA, Fathom, etc.) rather than specific to Princess:

o Capacity shift to China has created relative scarcity in the rest of the world allowed increased pricing.

o 5% of 2016 CCL Corp capacity is in China. For 2017 it will be 6%.

o There will be a 5% reduction in European capacity in 2017, mainly due to reduced capacity in the Mediterranean area.

o There will be a 5% capacity increase in Alaska and 3% capacity increase in the Caribbean in 2017.

o In the past each brand decided on its own where to deploy ships. This led, for example, to a 20% increase in capacity in the Caribbean (and thus too much capacity) in 2014. Now the deployment is coordinated among the various CCL Corp brands to thus have the optimum number of berths available for the highest possible pricing.

o There are ongoing efforts to create demand that is greater than supply.

o In the UK where P&O and Cunard have many bookings paid in British pounds, the BREXIT devaluation of the pound will make cruising a more affordable option than a land vacation on mainland Europe or the USA.

o Bookings for the remainder of the year are at higher prices with less inventory remaining for sale than at the same time last year.

o Caribbean occupancy is well-ahead of last year at "nicely higher prices." For Alaska, occupancy is in line with last year, also at "nicely higher prices." For the seasonal European program, occupancy is ahead of the prior year at lower prices, due to events which impact the Mediterranean area.

o 90% of the guests on the European itineraries are European. (remember this covers all of CCL Corp brands). However, less North Americans are flying to Europe for cruises this year.

o CCL Corp now has 12 offices open in China and will continue to expand there. These offices continue to educate travel agents about cruising and how to better sell cruises. They have been working with ten distributers in China and will continue to expand this number. There are about 250-300 travel agents they work with who sell through more than 24,000 other TAs in China. (Note: only about 10% of Chinese TAs are authorized to sell trips that take people out of China.)

o Onboard revenues have increased every year but one in the history of the Corporation (I assume this does not include revenues prior to the purchase of some of the brands.)

o For Fathom, which is more about traveling than cruising, it has been difficult to access the market they are after. Those who have been on the cruises to the Dominican Republic and Cuba have "loved" the experience.

Sorry that I missed seeing Donald on CNN or CNBC. I would have liked to have seen it.

Thanks caribill for the stock report on CCL Corp. It appears we are in for inflated prices on future cruises. Everything else is going up so cruising is following the trend.

CEO's have to be very careful what they say as it could very well cause the stock price to go up or down. Also the SEC has a big stick to beat them over the head and they know it.