Carnival Corporation & plc (CCL) has provided an update on bookings and resumption across its brands.
Carnival has provided an update on bookings and resumption across its brands.
The world’s largest cruise business, Carnival Corporation, announced its third-quarter results today, September 24, and the news is overwhelmingly good. Not only is the business enjoying record-high passenger satisfaction ratings across all operational brands, but it is also seeing record reservations in the future, indicating that cruises are once again profitable.
Carnival Corporation is currently operating with more boats than the competitors, in more areas, transporting more passengers, according to Arnold Donald, the company’s CEO. Something that appeared unattainable just a year ago.
Guest Services Have Been Very Successful
Carnival Corporation’s comeback to cruising has been a huge success. Currently, eight of the company’s nine brands are operating, and occupancy rates have been gradually increasing since June of this year, rising from 39 percent in June to 59 percent in August.
Due to the prohibition on cruising and the unknown health standards that will need to be in place in the nation, P&O Australia is the only cruise line that is not currently operating.
“Beyond the enthusiasm of our guests and crew, and the unprecedented net promoter scores, it is difficult to demonstrate just how successful our restart effort has been because many cruises, while generating positive cash flow, were limited to scenic cruises without ports of call, and were generally priced well below the attractive destination-rich cruises we normally offer,” Arnold Donald said.
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Carnival Cruise Line, the company’s American brand, has had one of the most successful relaunches. At the end of July, the cruise company embarked aboard the most anticipated cruise ship in the world, Mardi Gras. Currently, the business operates with a total of 11 ships. What’s more remarkable is the cruise line’s enormous popularity for its ships, Arnold Donald:
“In July, Carnival Cruise Line restarted operations. Despite the relatively short booking window and capacity constraints, the brand achieved a 70 percent occupancy rate, indicating strong underlying demand for our core product.”
Also see: Which Carnival Cruise Ships Are Back in Service?
In August of this year, Carnival Corporation saw a small drop in bookings, owing to the uncertainty about the impact of the Delta variation across the globe. Aside from that, the business has had a strong booking season.
The firm claims that booking figures for the second half of 2022 are greater than the previous year’s record-breaking year.
Cruise Hive’s photo is licensed under a Creative Commons license.
“Despite decreased marketing expenditure, our booked position for the second half of 2022 is at a new historical high, including our typically strong third quarter with all of our ships scheduled to be in operation,” Donald said. While still turbulent, the overall travel situation has improved significantly since last summer, and we think it will improve much more by next summer if the present trend of vaccination rollouts and therapeutic advances continues. We’ve also launched reservations for longer trips in 2023, which have shown extraordinary early demand.”
Customer deposits rose $630 million to $3.1 billion as of August 31, 2021, up from $2.5 billion as of May 31, 2021, according to the firm. It indicates that for the second quarter in a row, the business has seen a rise in client deposits.
The Financial Situation
The company’s financial results reflect the company’s overall performance in the third quarter, as well as a good forecast for Q4 and beyond. Cash burn for Q3 2021 was $510 million, which was lower than anticipated.
Photo credit: Shutterstock.com/Ritu Manoj Jethani
Revenues generated on trips, continuing ship operations and administrative costs, restart spend, working capital adjustments, interest expense, and capital expenditures are all included in the monthly average cash burn rate. Carnival Corporation announced a $2.8 billion U.S. GAAP net loss and a $2.0 billion adjusted net loss for the third quarter of 2021.
Also see: 10 Advantages and Tips for Investing in Carnival Cruise Line Stock
The firm finished the third quarter with $7.8 billion in cash on hand, which they think will be enough to see them through the whole restart period. This is combined with the fact that the eight brands’ trips in the third quarter were cash flow positive, which will undoubtedly increase confidence.
“As the biggest company in our sector, it’s no surprise that we’re now effectively functioning on a bigger scale than anybody else. Our procedures have been functioning effectively, allowing us to increase occupancy levels as additional ships are returned to service. Looking forward, we want to resume full passenger cruise operations by next spring, just in time for our crucial summer season, when we generate the majority of our operational profit.”
The business update is a welcome change from the bleak reports we’ve been used to over the past 18 months. It seems that, in addition to a good increase in the number of ships sailing, Carnival Corporation’s business is slowly but steadily returning to normal.
Carnival has provided an update on bookings and resumption across its brands. Reference: carnival cruise cancellations update.
Frequently Asked Questions
Does Carnival resume 2021?
Will Carnival cruises resume in January 2021?
Unfortunately, Carnival Cruise Lines has not yet announced a date for when they will resume their cruises.
Which Carnival ships have been updated?
Carnival Vista, Carnival Liberty, Carnival Triumph.
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