Carnival Corp to hike fares despite record bookings for future sailings
Ilaria Grasso MacolaCarnival Corporation will continue with its plan to increase revenue growth through higher fares despite already achieving record bookings for future sailings.
The group recorded second quarter revenue of $4.9 billion (£3.8 billion) on Monday (26 June).
“We are already executing on our strategy to grow revenue by taking up ticket prices, even while maintaining record onboard spending levels, building occupancy and growing capacity,” said chief executive Josh Weinstein.
Carnival Corp, which operates the P&O Cruises, Princess Cruises, Cunard, Carnival Cruise Line, Seabourn and Holland America Line brands in the UK, reported adjusted quarterly earnings before interest, taxes, depreciation and amortisation (Ebitda) of $681 million, in line with previous guidance.
Carnival also ended the second quarter with a positive free cash flow of $7.3 billion, as well as record bookings for all future sailings.
“Booking volumes have been tremendous and we are gaining momentum with favourable pricing trends, which reflects improved commercial execution and returns on our advertising investments,” Weinstein added.
According to the chief executive, booking lead times for North America and Australia are their highest ever, while European bookings are now within 10% of 2019 levels, a 10-point surge compared to the previous quarter.
EU bookings have also reached a double-digit percentage increase in both volumes and pricing compared to pre-Covid levels, the company added.
Following the results release, Carnival has also increased its full-year earnings expectations to $4.25 billion, up from March guidance of $4.10 billion.
Separately, the cruise line has also announced a leadership restructuring, which will see the chief executives of its six biggest brands report directly to Weinstein.
“The enhanced structure enables its brands to operate with greater speed and responsiveness to market demands and opportunities,” Carnival said.
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