Carnival draws new cruisers, keeps up ad spending in 'different' wave

Of the more than 12m passengers the company carried in 2023, over 3.5m were new to cruise, CEO Josh Weinstein said Thursday.

He said this indicates Carnival is well-positioned to continue to take market share from land-based holidays.

Maintaining service, and a younger fleet

And while many land-based options have cut services, 'We still deliver incredible service to our guests' thanks to the crew, Weinstein told analysts on the fourth quarter earnings call.

Plus, the ships are better, with newer amenities.

Almost four years after the pandemic shutdown, Carnival's fleet age averages about one year younger following the company's fleet optimization efforts. Roughly 30% of Carnival capacity now consists of newly delivered vessels.

New cruisers and direct bookings

Analyst Patrick Scholes of Truist Securities asked about Black Friday/Cyber Monday promotions reeling in new customers, with the assumption they'd call 800 numbers to book directly, saving Carnival commission payments.

Weinstein didn't have a breakout of new to cruise numbers for the Black Friday/Cyber Monday period but said on Q4 sailings, the new to cruise figure was up 51% (without specifying the comparable period). Separately, he said Q4 registered more new to cruise and new to brand customers than in 2019.

Booking directly on the web is the most cost-efficient channel, however Weinstein said new cruisers don't come in a particular way; it depends on factors like the brand and cruise length. He added most new customers start with shorter trips which may lend themselves to younger customers who may be more inclined to book on the web.

Yet, Weinstein noted: 'Historically, our trade partners are absolutely critical in driving new to cruise ... and year over year are showing great strength.'

Advertising pays off

Carnival Corp. has spent more on advertising over the last 18 months and that has 'definitely paid off with elevated awareness and consideration for our brands and record booking levels and revenue results,' according to Weinstein.

During fiscal 2023, web visits were up more than 35%, paid search up roughly 50% and natural search up almost 75% — all many multiples above the company's 2024 5.5% capacity increase.

Carnival brands plan to maintain similar adverising spending on a per unit basis in 2024.

A different wave season

Weinstein said the whole focus of this year's wave season is different than a year ago when the push was just to recover occupancy and fill the ships.

'We are effectively back to normal,' with the best booked position the company has ever had so Carnival has greater visibility into the future than pre-pandemic. 'This time we actually get to go through wave and be more strategic in how we are trying to advance the needle, not just in the short term but the long term,' the Carnival chief said.

Wave season promotions include Costa Cruises focusing on moments that leave guests speechless, P&O Cruises inviting travelers to 'holiday like never before' and AIDA Cruises beckoning customers to 'experience yourself differently.'

Carnival Cruise Line will launch a wave campaign highlighting its new Celebration Key in the Bahamas. Holland America Line is continuing its 'Time of Your Life' campaign. And Cunard will unfurl a 'welcome fit for a queen' heralding Queen Anne's introduction.

Add Seatrade Cruise News to your Google News feed.