MIAMI — Bookings are up, prices are up and yields are up for Carnival Corp. and that’s good news for the company’s many cruise lines and the agents who sell them.
According to Carnival Corporation’s Q4 and full-year results, bookings for full year 2018 are ahead of the prior year at higher prices. Since November, booking volumes for 2018 have been running “well ahead” of the prior year at higher prices, according to Carnival Corporation & plc President and CEO Arnold Donald.
Based on current booking trends, the company expects full year 2018 net revenue yields to be up 2.5% compared to the prior year.
“Despite booking disruptions from this year’s multiple hurricanes, we are still heading into 2018 with a stronger base of business and higher prices than last year,” says Donald.
He adds: “We have numerous efforts underway to keep the momentum going in 2018 and beyond, from our innovative approaches to increase consideration for cruising, including our recently announced partnership with Univision, to the further roll-out of our state-of-the-art revenue management system. In 2018 we also look forward to the delivery of four new cutting-edge ships, Carnival Horizon, Seabourn Ovation, AIDAnova, and Nieuw Statendam to further our strategic fleet enhancement program.”
As a result of higher fuel prices, forecasted fuel costs for the full year 2018 are expected to increase approximately US$117 million compared to the prior year.
Carnival’s net income for the full year 2017 is $2.6 billion compared to $2.8 billion for the prior year.
Full year 2017 adjusted net income of $2.8 billion was higher than adjusted net income of $2.6 billion for the full year 2016.
Revenues for the full year 2017 were $17.5 billion, $1.1 billion higher than the $16.4 billion in the prior year.
Gross revenue yields (revenue per available lower berth day or ‘ALBD’) increased 6.8%. In constant currency, net revenue yields increased 4.2% for 4Q 2017, better than September guidance of up 1.5 to 2.5%.
“We exceeded the high end of our original full year 2017 guidance by $0.22 per share, achieving record cash from operations of $5.3 billion and another adjusted earnings per share record despite a significant drag from fuel and currency,” said Donald. “Our full year performance was led by over 4.5% growth in ticket prices while overcoming a variety of headwinds, affirming that our core strategy, which is anchored in delivering exceptional guest experiences, driving demand through marketing programs to increase cruise consideration, and introducing new more efficient ships through measured capacity growth all while leveraging our scale, can deliver consistent earnings improvements.”
Carnival Corporation & plc is the world’s largest leisure travel company with a portfolio that includes Carnival Cruise Line, Holland America Line, Princess Cruises, Seabourn, AIDA Cruises, Costa Cruises, Cunard, P&O Cruises (Australia) and P&O Cruises (UK), as well as Fathom, which ceased operations in November 2016 and transitioned to a shoreside-only brand in 2017.