Top Headlines

North America demand strong, Europe improving, China slightly weakened – RCCL

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 25 April 2013 25 April 2013

Royal Caribbean Cruises Ltd (RCCL), the Miami based cruise shipping group, says that demand in North America has remained strong and that in Europe is improving, but the Chinese market has suffered slightly rom territorial disputes with Japan. The company reiterated earlier forecast that yields would rise between 2% and 4% this year.

Since the beginning of the year booking volumes have averaged 5% ahead of the prior year. At this time, full year booked load factors and APDs are higher than the same time last year. The overall demand environment is in-line with the company’s expectations from February, but as usual there are regional fluctuations.

Bookings from North America have remained strong since the beginning of the year, with the exception of a modest disruption to Caribbean demand which the company attributes to adverse industry media coverage.

Despite the difficult economic news in the EU, demand from European sourced guests strengthened in early February and the company expects pricing improvement from the region for the year.

Demand from China has weakened somewhat due to itinerary changes related to the territorial dispute with Japan.

At this time, the company expects that the negative effects from the adverse industry media coverage in March and itinerary changes in Asia will be offset by the favorable performance in the first quarter and a slightly better outlook for Europe. As a result, full year 2013 Constant-Currency yield expectations remain unchanged from the company’s February guidance of an increase of 2% to 4%.

“Our brands have continued to generate solid demand despite a soft economy in Europe and recent adverse industry media coverage,” commented Brian J. Rice, vice chairman and chief financial officer. Rice continued, “The consumer continues to recognize that we offer a great vacation at an excellent value.”

RCCL first quarter EPS $0.35 far exceeds forecast

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 25 April 2013 25 April 2013

Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, announced first quarter 2013 net income of $76.2 million, or $0.35 per share, versus net income of $47.0 million, or $0.21 per share, in the first quarter of 2012.

The fresh figure is much higher than the average forecast of $0.21 of cruise industry analysts.

“Both onboard revenue and ticket pricing improved, contributing to a Net Yield increase of 3.6% on a Constant-Currency basis. NCC (net cruise costs) excluding fuel were also better than anticipated, primarily due to timing, and declined 0.5% on a Constant-Currency basis,” the company said

Bunker pricing net of hedging for the first quarter was $699 per metric ton and consumption was 5,000 metric tons lower than expected at 345,900 metric tons. Versus the first quarter of 2012, fuel consumption per APCD was 1.2% lower

Brancaleoni named new GM of Iberocruceros and Costa in Spain

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 24 April 2013 24 April 2013

Costa Crociere S.p.A. has announced that Massimo Brancaleoni has been promoted to the position of General Manager of Iberocruceros and Costa Cruises in Spain. He succeeds Alfredo Serrano, who is leaving the company.

Brancaleoni will be reporting directly to Michael Thamm, CEO of Costa Crociere S.p.A. and will be charged with the task of consolidating and strengthening the position of the Costa and Ibero brands in Spain, by means of the joint development of the two brands operating in the country.

“With his extensive international experience acquired in Italy, France and Asia, Massimo has the leadership skill required to lead the combined activities of Costa and Ibero as well as to further increase our competitiveness in the rapidly changing Spanish marketplace,” commented Costa Crociere S.p.A. CEO Michael Thamm.

“Spain is the third cruise market in Continental Europe and it’s a core market for Costa – said Massimo Brancaleoni. – I am certain that with our great commitment and hard work we will be able to face successfully the future challenges ahead of us.”

Massimo Brancaleoni, aged 45, born in Genoa, has taken his current role after a long experience in the Italian Company, started in 1997.

In his career, Massimo Brancaleoni was able to develop multiple skills in finance, sales and marketing and strategic management, becoming VP of World Wide Sales Services at the Genoa headquarters in 2009. He also achieved the ambitious objective - a real “first” for the cruise industry - of launching Costa in Asia, both as a brand and in terms of operations, in his position as Vice President of the newly established Pacific Asia Operations (PAO) division from 2005 to 2009.

Carnival’s China operations profitable for first time 2012

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 23 April 2013 23 April 2013

Carnival Corporation & plc recorded a profit from its operation in China for the first time last year, six years after its Costas Crociere unit commenced business there, said Howard S. Frank, Vice Chairman, Chief Operating Officer and Member of Executive Committee of the world’s largest cruise shipping group.

“In China, the cost of China business, which was established as I said in 2006, achieved profitability for the first time in 2012, which is greatly encouraging. We added a second ship to Costa Atlantica to the Asian fleet, doubling the size, more than doubling the size of Costa Victoria has already been there,” he told the shareholders meeting of the group in London last week.

“And we will source, we expect to source 185,000 Chinese passengers in 2013 on the Costa fleet. In Japan, where we are just beginning at the end of this month to open up cruising to the Japanese market. We have a sort of a step ahead of other operators. We are really the only major -- Princess will be the only major operator in Japan."

“And we are looking to source up to 100,000 passengers, Japanese passengers in 2014. You can see -- you continue to see the strategy is to move our business further East… And looking at emerging markets where we've doubled our share, that's been part of our strategy to move further East into Asia. And that has worked, so we've doubled our share for Asia in emerging markets passengers and that's worked for us. And that, in some measure, is the future growth of the business, if you will, as we move East. So that is part of our strategy,” he said.

Carnival Corp & plc: repeaters increase to 68% from 54% of total volume in six years

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 23 April 2013 23 April 2013

The proportion of passengers who return to cruise on ships of Carnival Corporation & plc brands has increased to 68% last year from 54% in 2006, but in absolute terms the number of first timers has not declined thanks to the growth of the total volume, said Howard S. Frank, said Vice Chairman, Chief Operating Officer and Member of Executive Committee of the world’s largest cruise shipping group.

“In 2006… we sailed with 7 million passengers on a worldwide basis. In 2012, we sailed with an excess of 10 million passengers on a worldwide basis. What's interesting is that repeat cruises in the left-hand side, in 2006, were 54%, that is people who come back and cruise with us. We've increased that to 68%,” Frank told the shareholders’ meeting of the dual listed group in London last week.

“Why is that important to our business? Because repeat cruises are our best customers. They understand cruising, how to have fun on a ship, how to enjoy it and they pay the best prices for our cabins and they spend the most on board. So having this enumerator of 68% of your 10 million passengers that are repeat cruisers, is an ongoing revenue stream for us.”

“It's very important. And as we've grown this in that six-year period, that endures to our benefit. At the same time, you can see our first time cruisers have come down from 46% to 32%. But in reality, they haven't come down at all because it's still 3 million passengers of -- 3 million passengers in 2006 were new cruisers. It's the same 3 million passengers on an absolute basis in 2010. So what is good, is you need to get cruisers to your ship the first time so they come back and repeat, so we need to continue to drive new business for us, new cruisers, introducing new people to cruising.”