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Carnival sees higher Caribbean, Alaska yields, no significant Europe impact after Tunis tragedy

Carnival sees higher Caribbean, Alaska yields, no significant Europe impact after Tunis tragedy

For Carnival Corp. & plc's North American brands, Caribbean and Alaska bookings are 'nicely ahead' in price and occupancy year over year, while other itineraries, including Europe, are ahead in occupancy but at lower pricing due to the movement in currency exchange, cfo David Bernstein said Friday.

For Carnival's European, Asian and Australian brands and including itineraries in Europe, bookings are 'nicely ahead' in price and occupancy.

As expected, first quarter Caribbean business was challenging due to a big industry-wide capacity increase, but Caribbean yields are projected to be up in the balance of the year, particularly in Q3 when industry capacity is down double-digits, Bernstein told analysts during the company's earnings call.

'The Caribbean was really crowded last year,' Carnival ceo Arnold Donald added. 'Going forward, we see strength in the Caribbean.' There are opportunities to increase yields everywhere, but relatively the Caribbean is looking more promising than other areas, he said.

'Alaska's super-strong,' Donald also noted.

Both UK and continental European markets are booking cruises further ahead than in the past.

The terrorist attack in Tunis where 17 passengers were among those who died in the gunfire at a national museum was tragic, Donald said. Yet Tunis had accounted for just a 2% sliver of Carnival deployment, so dropping Tunisia from Mediterranean itineraries is 'not overly significant.'

The incident was not mentioned during the call apart from one question by an analyst.

The psychological impact of the attack on source markets may vary, however, with North Americans perhaps having concerns about travel to Europe in general, not to specific locations, Donald observed.

Historically, though, these fears have dissipated over time, he added.

 

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