Carnival Article in Time Magazine

[RD64]

Here is a link to a recent article in Time Magazine - sums it up quite succinctly.

 

http://time.com/39011/carnival-cruises-books-more-passengers-and-loses-more-money/

[Aoumd]

I read the article. While my family, friends and I have thoroughly enjoyed the deep discounts of the past year, this is quite the reminder of the dark side to those low rates.

 

The discussion in the second half of the article about the supply vs. demand of cruise berths industrywide makes me wonder what things will look like if things don't change. My guess, and this is just my guess, is that if the industry adds 70k berths and demand stays flat, Carnival will announce a plan to retire off the Fantasy class...and not replace anywhere near the same number of berths. If the industry is adding 70,000 berths and demand is flat, something's gotta give.

 

Of course, hopefully things will pick up again for the industry in the next year!

Edited March 28, 2014 by Aoumd

[cjknox]

I have said many times and will say once more that Carnival will normalize by mid to late 2015; by then we should see the regular annual passenger growth rate.

 

Carnival definitely will not be selling off or getting rid of any of the fantasy class anytime soon. Since there is not a very robust used ship market they'll be in the Carnival fleet for many more years. Not to mention they are a core part of the extremely crucial short cruise market.

 

I do agree that this is a very sticky situation for Carnival and the industry as a whole but the cruise industry is very resilient so they'll pull through.

[wrigley80]

Was that in this week's Time Magazine

[Giffer]

If you actually go to the link and read the financial summary you will see that it is for Carnival Corp, not Carnival Cruise Line. And there biggest loss was $17 M on fuel derivatives. Derivatives are always a crap shoot. Had fuel prices not declined, Carnival would not of been showing a loss. And the financial is only for Q1. The two quarters which include summer months will show improved income and most likely a lower ratio on the fuel. Let's see what the year end statement says.

 

Sent from my Samsung Note 10.1 using Forums mobile app.

[andy.capitan]

Carnival lost money but less than they were predicting. With demand leveling out, Carnival's bookings are up. Carnival, the cruise line only has 1 ship on order for delivery in 2016, while other cruise lines have more.

 

Carnival is looking brilliant and the others, well, not so much.

[AmberTeka]

""This week, Carnival Cruises reported a net loss of $15 million for the fiscal quarter ending February 28. The loss came, somewhat curiously, during a time period “with booking volumes up almost 20 percent globally surpassing last year’s cumulative advance booking levels,” Carnival president and CEO Arnold Donald said. "" (TIME)

 

Because those new bookings were "Free Cabins". And most of them Did Not rebook. Did not spend lots of money. And Carnival hacked off passengers who stayed with them during the bad Days. And who do spend some bucks when they sail..some for as many times as 51 crusies. ( Did NOT get a free cabin)

 

The "secret" promotion did not work. And I will Say I told you so.

 

Good Companies reward Good Customers. They then bring in family, friends from church.Work. Etc. Personal Experience from someone who has cruised..is the best sailing incentive for newbies

 

We are back from the Dream. My daughter posted pictures on her FaceBook site. I have had e-mails from friends and family, who want to be friended by her just to see the pictures. She is wowed by cruising. So is her husband after that cruise.

 

Not trying to stir the pot. Not mad anymore or hurt, is a better word. I am booked on Celebrity and I feel like a first time cruiser again. Excited but worried. No longer the same normal. Might be better. have to see the glass as half full. Expect the food will be good. The reviews I read rave about that.

Edited March 28, 2014 by AmberTeka

[GatorGirl57]

People have got to stop beating a dead horse about the free cabins! Besides, I wouldn't say I Told You So yet. Many of the people who got the free cruise (myself included) did not book for the very next week - my cruise is still almost three months away, along with many other people's. Who knows what it will look like when people go. I am also tired of the "not rewarding loyal customers" line. This will be my 5th Carnival cruise in less than 10 years. How is that not a loyal customer? I am not able to go all the time, anytime, I have a full-time job, but I have chosen them for most of my cruises. On two of those cruises, we went with about 20 different family members, some who had never sailed Carnival before. How is that not bringing people to the brand? I am tired of people picking on the people who got the free cruise. It just showed up in the mail! What, did you want me to turn it down!

 

-end rant- Now I feel better. I am seriously tired of people talking about this.

Edited March 28, 2014 by GatorGirl57