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» Cruise Talk   » Cruise Lines   » RCCL not so negative on Caribbean

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Author Topic: RCCL not so negative on Caribbean
bulbousbow
First Class Passenger
Member # 4440

posted 04-22-2006 02:33 AM      Profile for bulbousbow   Author's Homepage   Email bulbousbow   Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
RCCL downplays Caribbean fears
April 21, 2006

ROYAL Caribbean Cruises Ltd (RCCL) confirmed the existence of new pricing pressures on Caribbean itineraries, but appears less negative in its outlook than Carnival Corp. Royal Caribbean brand president Adam Goldstein said in today’s conference call that the Caribbean “isn’t quite at the level of expectations” predicted 3-6 months ago and “may not be as strong” in 2006 as it was in 2004 and 2005, yet he maintained that the region is still performing well overall. Asked whether consumers’ hurricane fears will dampen bookings during the forthcoming season, RCCL chief executive Richard Fain admitted ‘concern’, but said RCCL had not seen “any overwhelming reaction” yet. The hurricane factor “may temper what would otherwise have been an even better season,” Fain continued. Meanwhile, Goldstein noted that higher expenses in Cozumel are related to very high prices being charged for tendering services after the island’s three piers were knocked out by Hurricane Wilma. He added that RCCL is currently in discussions with the Mexican government to bring those costs down. He also noted that one of two berths at one of the damaged Cozumel piers went back into service two weeks ago. RCCL holds the preference on that berth, partially alleviating the tender cost issue.

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Posts: 6866 | From: Adelaide, Australia | Registered: Feb 2004  |  IP: Logged
Malcolm @ cruisepage
Cruise Director
Member # 301

posted 04-22-2006 05:17 AM      Profile for Malcolm @ cruisepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
I don't know why any cruise line should be negative about the Caribb apart from greed?
After all it is still the worlds biggeast destination, where the lines earn most of their profits from.

Anyway, Europe will obviously be the new 'cash cow'. RCI's fares for the ex-Southampton and Barcelona cruises in 2007 are in many cases twice those of the caribb.

OK some of the overheads will probably be higher (fuel and food etc) but RCI will have bulk deals. The crew still get the same low wages.

[ 04-22-2006: Message edited by: Malcolm @ cruisepage ]


Posts: 19210 | From: Essex (Just Outside London) | Registered: A Long Time Ago!  |  IP: Logged
moodus2
First Class Passenger
Member # 2414

posted 04-22-2006 08:41 AM      Profile for moodus2   Email moodus2   Send New Private Message      Edit/Delete Post  Reply With Quote 
fuel oil will be of concern.
rcl paid $418 m/ton vs. $284 m/ton. i wonder what their daily fuel consumption for the
entire fleet is ?

Posts: 473 | From: moodus,ct. | Registered: Sep 2001  |  IP: Logged
Malcolm @ cruisepage
Cruise Director
Member # 301

posted 04-22-2006 08:50 AM      Profile for Malcolm @ cruisepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by moodus2:
i wonder what their daily fuel consumption for the entire fleet is ?

I've no idea but 24 (?) Mega-ships is more economical to run than 28 smaller ones. If they can charge twice the fare of the carib ib Europe, the margins must still be excellent.


Posts: 19210 | From: Essex (Just Outside London) | Registered: A Long Time Ago!  |  IP: Logged

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