Europe biggest swing factor for RCCL, East China Sea new concern
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 04 February 2013 04 February 2013
Royal Caribbean Cruises Ltd (RCCL), the second largest cruise shipping group in the world, says that uncertain development of the European source market is the biggest swing factor in the group's 2013 performance, while tensions in relationship between China and Japan is a new concern.
RCCL expects yields to improve in Europe this year, although about 50% of the 2013 inventory remains unsold at the moment, although the group has cut 10% of capacity in Europe this year to 27% from 2012. The Spanish market is showing weakness on both pricing and volumes and the outlook remains weak for quite some time.
In the UK, pricing has firmed on last year, but volumes lag. Adam Goldstein, head of the group’s contemporary market Royal Caribbean International (RCI) unit, said in a conference call that it would take two to three months to see how the British markert would respond to various measures to fuel sales. In case desired results do not emerge, the company will take into use more aggressive measures.
In the Far East, RCI has replaced calls at Japanese ports with those in South Korea until June on sailings from two Chinese ports due to political tensions between China and Japan.
CLIA launches initiative to engage stakeholders
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 04 February 2013 04 February 2013
Cruise Lines International Association (CLIA) says it has launched ‘Cruise Forward,’ a new industry-wide communications initiative that will promote awareness of cruising’s wide-ranging contributions and engage stakeholders across the global cruise industry.
The global cruise industry offers more than a great travel and entertainment experience. The industry brings economic development, cultural exchange, support of community and environmental programs and initiatives, and a commitment to preserving and protecting communities and waterways. ‘Cruise Forward’ showcases how the industry is:
· Delivering significant economic benefits: The cruise industry generated nearly £64 billion ($100 billion) in economic impact and more than 753,000 jobs worldwide in 2011.
· Supporting community organisations: Whether providing financial support to local charities, protecting the cultural heritage of port communities, or involving employees and guests in volunteer opportunities, cruising makes a difference in hundreds of ports across the globe.
· Safeguarding the oceans and the environment: Cruise lines are actively working to reduce the overall environmental impact of cruising and preserve and protect our pristine oceans, beaches and ports.
· Fostering a safe, secure and healthy cruise ship environment: The global cruise industry is committed to undertaking initiatives that provide passengers one of the safest, most affordable, and enjoyable holiday experiences available today.
Christine Duffy, president and CEO of CLIA, said: “Those closest to our industry know how our economic impact extends far beyond port communities, they see the value of cultural exchange and the volunteerism that happens every day from passengers, crew and employees, our support of community and environmental programs, and they know the ongoing commitment of our industry to safety.”
“We must do more to share these stories and ‘Cruise Forward’ will help us do just that and also increase public awareness regarding the industry’s extensive commitment to supporting community partnerships, safeguarding the environment and delivering wide-ranging economic benefits worldwide.”
‘Cruise Forward’ will serve as a global platform for representatives from the cruise industry to engage industry stakeholders –customers, employees, business partners, port communities, policymakers and the media – across social media and at industry and community events to foster a global discussion about the benefits that cruising brings to individuals and to society.
RCCL forecasts 2% to 4% net yield rise 2013; US market strong
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 04 February 2013 04 February 2013
Royal Caribbean Cruises Ltd (RCCL), the world’s second largest cruise shipping company, says that 2013 booking activity in the fourth quarter was slightly lower than the same time last year, with the greatest decline coming in the aftermath of super-storm Sandy.
However, the company has observed a much stronger booking pattern since the beginning of WAVE season and demand trends have been quite healthy.
In recent weeks, booking volumes have been running approximately 20% ahead of the same time last year, due in part to the slower booking trends the company experienced after the Costa Concordia grounding in January of 2012.
Normalizing for this favorable comparison, the company still considers the WAVE season to be off to a strong start, particularly from U.S. points of sale. Booking volumes are exceeding those during the same period in 2011 and in the aggregate, forward booked load factors and pricing are higher than at this time in both 2011 and 2012.
Full year Net Yields in 2013 are expected to increase 2% to 4% on a Constant-Currency basis and 3% to 5% on an As-Reported basis.
"We were proactive in reducing our deployment and guest sourcing programs from Europe due to uncertain consumer spending patterns as austerity measures continue to pressure the region," commented Brian J. Rice, vice-chairman and chief financial officer. Rice continued, "Encouragingly though, demand from our other source markets, especially the U.S., is strong and should more than offset any ongoing weakness in Europe. In fact, we are optimistic that we will achieve record yields in the Caribbean and Alaska this year."
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