How low will they go?

[swedish weave]

Thast is very true.

 

They fill the ship at any cost hoping to get a lot of onboard revenue. This is a plus for some of the Carnival enthusiast. They can always say that Carnivals ships sail full every week so there is nothing wrong with the cruise line.

 

Bill

 

Good management will fill the ships. An empty cabin produces no revenue. All well managed companies do this.

[Sargent_Schultz]

With lower fixed costs and greater economies of scale Carnival can sell cabins inexpensively, still make a profit, and pay a superior dividend.

[firefly333]

Good management will fill the ships. An empty cabin produces no revenue. All well managed companies do this.

 

I know you also keep arguing that Carnival WANTS to keep cabin prices low.

 

So, you also dont mind that Carnival earnings will miss forecasted earnings this next release and have lower earnings year over year? I know I keep seeing you post that you think Carnival has these lower prices on purpose.. that its smart business.

[S.S.Oceanlover]

Good management will fill the ships. An empty cabin produces no revenue. All well managed companies do this.

 

It's the cheap prices that are filling the ships.

 

I am in agreeance with you that empty cabins produce zero income.

 

If the board thought that their management team was doing a good job they wouldn't have brought in the ex CEO as a consultant.

 

Bill

[Sargent_Schultz]

It's the cheap prices that are filling the ships.

 

I am in agreeance with you that empty cabins produce zero income.

 

If the board thought that their management team was doing a good job they wouldn't have brought in the ex CEO as a consultant.

 

Bill

 

Until very recently Uncle Bob WAS on the board.

[swedish weave]

I know you also keep arguing that Carnival WANTS to keep cabin prices low.

 

So, you also dont mind that Carnival earnings will miss forecasted earnings this next release and have lower earnings year over year? I know I keep seeing you post that you think Carnival has these lower prices on purpose.. that its smart business.

 

Carnival grew to be the biggest in the world by providing cruises at low prices and by selling lots of booze. Yes=== They know how to manage a business and have really shown their abilities recently by surviving a string of very expensive problems.

 

Sure-- their finances have taken a hit but are already starting to rebound in a very volatile market. They have a ways to go, and are making the moves to assure long term positive results. Some analysts are predicting an increase for 2014 --- But as I posted previously --- CC posters know a lot more than they do. lol

 

Carnival doesn't need new ships with outlandish stuff like rock walls and projecting glass cages in order to attract their target market. They will continue to provide nice cruises at low prices and will fill their ships.

[S.S.Oceanlover]

Until very recently Uncle Bob WAS on the board.

 

I guess he finally convinced the rest of the board that change was needed.

 

And just to add a little irony Mr. Schultz I am sitting here in the mall while my wife shops but it just doesnt compare to the mall of the seas.

 

Bill

[rjrpar]

The problem with such low fares is Carnival is being forced to cut costs to maintain their margins. Similar RCI cruises are selling for 50% more. We all like cheap fares but not an inferior product.

[Seago2]

Good management will fill the ships. An empty cabin produces no revenue. All well managed companies do this.

 

But this is a December 3rd sailing- six months out. So it doesn't seem like a good management technique being utilized to fill the ship last minute. It's just a rock bottom fare. Crazy.

[firefly333]

 

Sure-- their finances have taken a hit but are already starting to rebound in a very volatile market. They have a ways to go, and are making the moves to assure long term positive results. Some analysts are predicting an increase for 2014

 

I would hope that if you take the whole year of 2014 earnings will be higher than last years. Of course earnings are positive. (i.e. not a loss). As a stock holder people expect the company to GROW earnings, and have higher earnings than last year.

 

Could you post a link to a analyst who has said since Triumph there will be a increase in earnings for 2014 please? I dont know if they will or not.. but I have not read such a analyst report.. please post the link.

 

As a cruiser, I love low prices. Bring them on. Im in heaven. As a stockholder .. this year hasnt been so great for Carnival .. and last year was Costa fiasco, so it should be a easy target to do better this year. Show me a low price on a drive to cruise .. Im all over it. I love it. People love these low prices. Carnival cant raise prices and still fill the ships. You keep saying how smart this is.. that Carnival has dug themselves in such a hole they have to sail at $300 pp on a 7 day and cant raise prices enough to make earnings in line.

[swedish weave]

I would hope that if you take the whole year of 2014 earnings will be higher than last years. Of course earnings are positive. (i.e. not a loss). As a stock holder people expect the company to GROW earnings, and have higher earnings than last year.

 

Could you post a link to a analyst who has said since Triumph there will be a increase in earnings for 2014 please? I dont know if they will or not.. but I have not read such a analyst report.. please post the link.

 

As a cruiser, I love low prices. Bring them on. Im in heaven. As a stockholder .. this year hasnt been so great for Carnival .. and last year was Costa fiasco, so it should be a easy target to do better this year. Show me a low price on a drive to cruise .. Im all over it. I love it. People love these low prices. Carnival cant raise prices and still fill the ships. You keep saying how smart this is.. that Carnival has dug themselves in such a hole they have to sail at $300 pp on a 7 day and cant raise prices enough to make earnings in line.

 

It is in Business week.

 

http://investing.businessweek.com/research/stocks/earnings/earnings.asp?ticker=CCL

 

Neither you nor I know what the price break on Carnival is to determine if the company is making or losing money. The cost of the cruise is not the only factor that determines profit or loss, so to say they can't make money selling a cruise for $300 is not a supportable comment.

[Blurgh]

December out of NYC, for a week (meaning it's not going south of Florida).

 

Yeech. Sounds about right. I don't know if I'd do it for that price, I'd just rather go to Florida and get the boat from there.

[swedish weave]

But this is a December 3rd sailing- six months out. So it doesn't seem like a good management technique being utilized to fill the ship last minute. It's just a rock bottom fare. Crazy.

 

Are you saying the largest cruise line in the world doesn't know how to manage their business ?? That is difficult to accept.

[firefly333]

But this is a December 3rd sailing- six months out. So it doesn't seem like a good management technique being utilized to fill the ship last minute. It's just a rock bottom fare. Crazy.

 

I agree, and if they cannot sell this cruise for more, I think eventually they need to find another port to sail out of. US will lose some ships to down under or the far east if these prices don't pick up.

 

Dec 12, 2014, the cheapest Quantum sailing except for the samplers at $949 pp is already selling out of many categories. It sails out of NJ and has awful ports, Pt. Canaveral, Nassau and CocoCay (no wonder its so cheap). People are rushing to book Quantum out of NJ during the winter, where it is just as cold as out of NY. It has many better itineraries for those who want to spend a lot more $$$.

 

Of course people on here defend Carnival and love the low prices. I would too, but imo $300 pp is too low, and if prices continue so low the ship is in danger of being moved. Yea, I think Carnival is smart.. so they wouldn't put up with these kinds of prices long term.

[mdwcruises]

The problem with such low fares is Carnival is being forced to cut costs to maintain their margins. Similar RCI cruises are selling for 50% more. We all like cheap fares but not an inferior product.

 

That is what I am afraid of.

[Can'tWait2SetSail]

“Worry does not empty tomorrow of its sorrow, it empties today of its strength.”

[mdwcruises]

Of course people on here defend Carnival and love the low prices. I would too, but imo $300 pp is too low, and if prices continue so low the ship is in danger of being moved. Yea, I think Carnival is smart.. so they wouldn't put up with these kinds of prices long term.

 

That is what I am thinking. These low prices are not good news. Carnival is doing it because otherwise cruises don't sell. I worry that quality will be compromised. I don't worry about moving ships because I live in Miami so there will be ships for me. :p

[Blurgh]

I agree, and if they cannot sell this cruise for more, I think eventually they need to find another port to sail out of. US will lose some ships to down under or the far east if these prices don't pick up.

 

Dec 12, 2014, the cheapest Quantum sailing except for the samplers at $949 pp is already selling out of many categories. It sails out of NJ and has awful ports, Pt. Canaveral, Nassau and CocoCay (no wonder its so cheap). People are rushing to book Quantum out of NJ during the winter, where it is just as cold as out of NY. It has many better itineraries for those who want to spend a lot more $$$.

 

Of course people on here defend Carnival and love the low prices. I would too, but imo $300 pp is too low, and if prices continue so low the ship is in danger of being moved. Yea, I think Carnival is smart.. so they wouldn't put up with these kinds of prices long term.

 

Yeah, but the Quantum will be a few weeks old on that sailing. And it's a new megaship, which is a destination unto itself. And given that, it's STILL way too cheap. I don't know why the lines put so many boats up here in the winter. It's just not attactive at all. If Quantum is going to go for $2,000-3,000 for normal cabins, what chance does an old Carnival ship have?

[DaveRRT]

Carnival owns more then Carnival. Like owning Dollar General, Walmart, Macys and Coach, They have it covered

[jwalk03]

I agree, and if they cannot sell this cruise for more, I think eventually they need to find another port to sail out of. US will lose some ships to down under or the far east if these prices don't pick up.

 

Dec 12, 2014, the cheapest Quantum sailing except for the samplers at $949 pp is already selling out of many categories. It sails out of NJ and has awful ports, Pt. Canaveral, Nassau and CocoCay (no wonder its so cheap). People are rushing to book Quantum out of NJ during the winter, where it is just as cold as out of NY. It has many better itineraries for those who want to spend a lot more $$$.

 

Of course people on here defend Carnival and love the low prices. I would too, but imo $300 pp is too low, and if prices continue so low the ship is in danger of being moved. Yea, I think Carnival is smart.. so they wouldn't put up with these kinds of prices long term.

 

I agree that $300 is really really low, and would certainly not be sustainable if the price was always that low. During the high season the cruises out of NY are EXPENSIVE though! at least compared to similar length Carnival cruises from Florida, so while this particular December cruise is way too low for Carnival to be profiting much (along with some other very cheap off-season cruises) I think they are more than making up for it with the higher priced NY cruises during the rest of the year.

[cathyz]

I agree that $300 is really really low, and would certainly not be sustainable if the price was always that low. During the high season the cruises out of NY are EXPENSIVE though! at least compared to similar length Carnival cruises from Florida, so while this particular December cruise is way too low for Carnival to be profiting much (along with some other very cheap off-season cruises) I think they are more than making up for it with the higher priced NY cruises during the rest of the year.

The cruises on the west coast are generally lots more expensive than Florida too, so they're making their money somewhere. The exact cabin category we are booked for in November is now $750 more than I paid for it last year, so some prices are going up not down for sure. Even the 4-days out of Long Beach to Ensenada and Catalina are more than $300pp! And the 3-days over the weekend are even more because of demand.

[firefly333]

Yeah, but the Quantum will be a few weeks old on that sailing. And it's a new megaship, which is a destination unto itself. And given that, it's STILL way too cheap. I don't know why the lines put so many boats up here in the winter. It's just not attactive at all. If Quantum is going to go for $2,000-3,000 for normal cabins, what chance does an old Carnival ship have?

 

Actually, its not that much bigger than Freedom class and some were dissapointed it will not be a minature Oasis.

 

Cabins are heated, and as far as I know Carnival does not heat cabins? The aft pool will be covered. It is being built to cruise year round from a colder climate.

 

If you have any loyalty level with RCL and apply a balcony discount the balconies are cheaper than insides. All regular insides will have a 80 inch tv virtual balcony so they are actually more expensive than having a regular outside balcony. Outside E balconys start at $1049 last time I checked, and I would get a $225 discount I believe. Others got a $350 discount who are higher loyalty levels. The balcony discount is only good on balconys and higher, and since balconys are only priced $100 pp higher than a inside, many people are saying its cheaper to book the balcony.

 

I do think Carnival is having trouble competing in this market, judging from prices.

[nealstuber]

I don't think there will ever be prices that low out of Galveston for a 7 day cruise.

 

I have seen prices low out of New York before. I did the Glory end of September 2011 and paid $329 pp.

 

Post Ike we came close to that.

[swedish weave]

The problem with such low fares is Carnival is being forced to cut costs to maintain their margins. Similar RCI cruises are selling for 50% more. We all like cheap fares but not an inferior product.

 

Who is forcing carnival to cut costs ?????

 

ISN'T IT PRETTY HARD TO FORCE THE BIGGEST CRUISE COMPANY IN THE WORLD TO DO ANYTHING THEY DON'T WANT TO DO ????

[firefly333]

Who is forcing carnival to cut costs ?????

 

ISN'T IT PRETTY HARD TO FORCE THE BIGGEST CRUISE COMPANY IN THE WORLD TO DO ANYTHING THEY DON'T WANT TO DO ????

 

I will try one more time then give up on you. Does it occur to you that everyone else is seeing things different than you? Your view that Carival WANTS to price cabins low.. when its simple supply and demand. In order to fill the ships they lower the prices.

 

Then when they lower the prices, they make cuts and seem to be in a downward spiral that the other lines are not in.

 

There is no "they" .. no one but Carnival is forcing these cuts on itself. You are misreading the post you quoted. I swear I need to just put you on ignore and quit reading your view of business which does not make sense to anyone but you.

 

No one WANTS to price themselves at rock bottom. They do it to fill the ships. Anyone would want to raise prices and still fill the ships with people who were willing to pay more to cruise on Carnival.

 

Its about basic supply and demand. The demand for Carnival does not allow them to raise their prices right now enough to make more revenue than they did just one year ago. This bad pr is no good.

 

If you still want to take on the world with your own private vision.. I will let you and not try to reason with you any more. Believe me.. Carnival needs to raise prices at least somewhat.. everything goes up, the price of food, labor you name it.. they need some room to be able to raise prices. It makes no sense to believe they want bad revenues and low cruise prices right now.

 

Carnival is the "they" .. no one is forcing them to do anything but themselves. Its up to them to find a way out of this downward spiral they are now in. You cant cut prices forever and cut services and then cut this and that forever. First it was Glory that had such low prices I read.. now its also Splendor this next winter.. crazy low this far out.