Increased Costs for 2014

[cjknox]

They can't raise prices. I don't know what you mean by "lose growth".

CCL is in a pickle of a situation. Profits are down because cabin prices are low. They can't raise cabin prices because if they did, they'd sail partially full and that would hurt profits even more.

There is only one thing they can do- more cutbacks.

 

David Clark -

 

2013 has been a bad year for Carnival Corp. no debating that. But why has this been such a bad year?

 

Not because of low ticket fares, but mainly because of unexpected expenditures (in the hundreds of millions of dollars), and the economic crisis in Europe has taken its toll too on all cruise lines in the Carnival Corporate structure.

 

Keep in mind that Carnival doesn't make profit on the cabins they sell, and their main focus is to get people on board, and thats when they make their money.

 

So yes, 2013 is/has/will be a bad year revenue wise for Carnival Corp. but when things normalize then revenue/profits/margins will follow suit.

[Travelbyrob]

Carnival barely has new ships coming to market. They will lower prices on thier aging fleet. New products garner more money.

[DGP1111]

. . .Carnival's earnings warning on Monday said they are making less money this year than last, no growth in profit. They have to get profits up .. something has to be done. We want Carnival to continue offering a good cruise at a good price.. but prices cant stay this low and make a profit.

 

I see a lot of truth/reality in that statement.

 

At today's closing bell:

RCL = $36.13

CCL = $32.88

NCLH = $32.15 (hey, whodathunk that gap would get so narrow so fast?)

 

They can't raise prices. I don't know what you mean by "lose growth".

CCL is in a pickle of a situation. Profits are down because cabin prices are low. They can't raise cabin prices because if they did, they'd sail partially full and that would hurt profits even more.

There is only one thing they can do- more cutbacks.

 

Member halos mentioned something very similar to this earlier.

The cutbacks/reductions/adjustments/etc. for the line seem inevitable, but it's hard to imagine where that could/would occur to incur the least PR damage.

 

.

[cjknox]

Carnival barely has new ships coming to market. They will lower prices on thier aging fleet. New products garner more money.

 

One thing to notice is that each cruise line goes through periods of fast and constant growth.

 

Carnival for example expanded quite a bit in the past decade with the introduction of the Spirit, Conquest, Splendor, and Dream Classes. Now that growth has slowed with their next ship due in 2016 but look for more orders for Carnival if the global economy improves enough after 2016, perhaps in 2018 - 2021.

[richard1s]

It is interesting to read that Carnival prices are increasing with, at least as you read on these boards, continual cuts in the product that is offered. Bizarre changes such as the consolidation of breakfast and lunch into one meal? I can imagine Carnival teams in all day sessions brainstorming ideas about what they can take way from their "loyal" customers to cut costs. All the while knowing that there are diehards who won't demand or expect a better quality product under any circumstances.

 

But still, Carnival patrons balk at paying an additional $100 per person to cruise on a higher quality line such as RCL or NCL. After all, it is the same itinerary!

[mdwcruises]

Or maybe the prices are normal, but right now prices are the lowest I have seen them since Ive been cruising in 2006.

 

Is it just Carnival or other lines are unusually low too this year? I am trying to figure out the best 3 year strategy. LOL

 

If Carnival is the only line that's unusually low I will see if I can squeeze in one more next spring break.

[firefly333]

Is it just Carnival or other lines are unusually low too this year? I am trying to figure out the best 3 year strategy. LOL

 

If Carnival is the only line that's unusually low I will see if I can squeeze in one more next spring break.

 

I booked a cruise on RCL out of NOLA this past spring at the lowest rate I have ever booked a 7 day .. on any line.

 

I think prices are starting to rise though.. the $169 Elation prices are now gone. I see prices only going generally up. They have to.

 

Carnival's bad PR affected bookings on other lines too, which have to be down to offer the price I got.

 

People are all getting price drops right and left.. this isnt normal. Ive had many cruises with no price drops in other years. Look at the threads with people saying prices on Carnival are too high next year.. because they are higher than last year.. never mind they are still cheaper than other lines.

 

Im betting a year from now Carnival is back to normal and prices are higher. I would be taking advantage of any cheap cruises I could find right now.

[mdwcruises]

They can't raise prices. I don't know what you mean by "lose growth".

CCL is in a pickle of a situation. Profits are down because cabin prices are low. They can't raise cabin prices because if they did, they'd sail partially full and that would hurt profits even more.

There is only one thing they can do- more cutbacks.

 

They end up attracting students like me, my sister and friends. We probably shouldn't be cruising at all because we can barely scrape enough to pay for the Carnival fare and will have a zero on board bill because we have no money left. :o

 

We will bring wine and soda and that's it.