Carnival Raises 2004 Forecast

Carnival Corporation bas raised its net yield guidance for 2004 to being up five to seven percent from its previous forecast of a two to four percent increase - "largely due to the weakness of the U.S. dollar and to a lesser extent due to strengthened booking levels during the Wave Season."

In its 10-K filing this week, Carnival also said that company-wide bookings were running 59 percent higher since the beginning of January than during the same period last year, which was adversely impacted by the build up to the war in Iraq.

Carnival said the increase in bookings was significantly above the company's 17.5 percent capacity increase for 2004.

However, with bookings up sharply and with Carnival attributing the increase in yields mostly to the weak dollar, it means that pricing is still an issue.

And, despite the improved outlook, Carnival is keeping its guidance at $2.02 for the year, up only $0.04 from its previous guidance of $1.98. For QI, Carnival expects earnings to be in the range of $0.21 to $0.22 up only slightly from its previous guidance which was in the range of $0.18 to $0.20.

Thus, while the trend is positive, Carnival's core recovery is relatively modest so far.

Analysts raised their price-targets as high as $61 compared to the trading price of $45.15 at press time and a 52-week high/low of $46.30 - $20.24.

In its filing, Carnival also said it is "possible that some more of our older ships may be sold or retired during the next three to four years, thus reducing the size of our fleet over this period."

This would most likely be the Holiday (1985), the Celebration (1987), the Royal Princess (1984), the Prinsendam (1988), and possibly the Costa Tropicale (1982).

In terms of "risk factors," Carnival listed the political and economic climate, competition throughout the vacation market, overcapacity, etc., and also the "lack of attractive port destinations for our cruise ships that could reduce net revenue yields and income."

Carnival went on to say that "attractive port destinations, including ports that are not overly congested with tourists, are major reasons why our customers choose a cruise versus an alternative vacation option. The inability to continue to maintain and increase our ports of call could adversely affect yields and income."

Carnival also identified its onboard revenue sources as services including, but not limited to, casino gaming, bar sales, gift shop sales, entertainment arcades, shore excursions, art auctions, photo sales, spa services, bingo games and lottery tickets, video diaries, snorkel equipment rentals, Internet and telephone usage, vacation protection programs and promotional advertising by merchants located in its ports of calls.

Cruise News | Top Cruise Stories

SeaDream II

SeaDream Announces 2020 Mediterranean Program

Sep 20, 2018
SeaDream Yacht Club today announced its 2020 Mediterranean season. The itineraries will highlight…
2019 China Market Report

2019 China Cruise Market Report Released

Sep 18, 2018
Cruise Industry News has released a new report outlining the latest developments in the Chinese and…
P&O Aurora in the Azores | Photo: Antonio Simas

British Cruise Brands Surging with New Ships, More…

Sep 17, 2018
The big brands serving the British domestic cruise market: P&O UK, Cunard, Marella Cruises, in…
Job Listings

Latest Cruise Jobs: September 16

Sep 16, 2018
A look at recent key job opportunities around the cruise ship industry: Latest Key Jobs: Employer…
Celebrity Edge

Video: Celebrity Edge Shipyard Hyperlapse Tour

Sep 14, 2018
Take a high-speed video tour of the new and innovative Celebrity Edge, which is currently under…
Venture Launch

National Geographic Venture Launched

Sep 13, 2018
The National Geographic Venture was officially launched earlier this week as the Lindblad…
Regal Princess

Regal Princess First Cruise Ship to Plug Into…

Sep 12, 2018
The Regal Princess became the first cruise ship to plug into shorepower in Norway this week as…
Captains in Cadiz

Fred. Olsen Cruise Lines Reunites Fleet for ‘Captains…

Sep 11, 2018
Fred. Olsen Cruise Lines has celebrated an historic coming together of its fleet of four ocean…
Norwegian Encore Hull Art

Norwegian Encore Hull Artwork Unveiled

Sep 11, 2018
Norwegian Cruise Line today revealed that Eduardo Arranz-Bravo, the Spanish artist, created the…
Havila Vessel Rendering

Havila to Build Two Ships at Turkish Shipyard

Sep 11, 2018
Havila will build two of its ships set for Norwegian coastal service at Tershan Shipyard in Turkey,…
MSC Seaview in Barcelona

Spanish Cruise Market Boosted by New Ships

Sep 11, 2018
According to key travel agents in Spain, the cruise industry is booming, helped in part by the new…
Jurgen Bailom

Zen Cruises Targets May 2019 Start Up from Mumbai

Sep 10, 2018
“Our brand will be a contemporary product for Indian tourists while offering a culturally relevant…

Email Newsletter

Get the latest breaking cruise news. Sign up.

Cruise Ship Orderbook

113 Ships | 268,854 Berths | $67 Billion | View

Latest Magazine Issue | Summer 2018

CIN Summer2018

In This Edition:

Europe

Expedition

Food + Beverage

Working at Sea

Executive Profiles

Connectivity

Cruise Experience