Carnival Cancels Future Cruise Cert. Will RCI be next?

[uksimonusa]

Carnival have canceled their Future Cruise Certificate program, I wonder if RCI will follow?

 

https://www.goccl.com/content/news_and_alerts/documents/FAQ_Future_Carnival_Vacations_Program_091112_final.pdf

[mj]

Hope not. Carnival is making too many changes lately

[Georgiagolfer]

Hope not. Carnival is making too many changes lately

 

I agree, as CCL must really be in trouble with the Concordia tragedy.

[tahqa]

You know... the various cruise lines aren't all in lockstep together all marching to the same beat. There are some trends that the cruiselines will inevitably all follow but business decisions made are intrinsically independent events.

 

I'm not saying that RCI won't get rid of the next cruise certificates, but there is nothing anywhere that suggests that they are even considering it. And as much as RCI and CCL hate each other the fact that CCL is doing might make RCI even less willing to do it. :rolleyes:

 

 

And before I get bashed about the "hating each other" statement I'd suggest you read "Devils on the Deep Blue Sea". There is some serious bad blood between Arinson and Fain. :eek:

[orville99]

"low economic performance". Under current GAAP and FASB rules, a company can't book (recognize) revenue until the service is actually used, or the certificate expires. I suspect CCL isn't getting enough pick-up (people actually using the certificates to book cruises) to offset the accrued cost of carrying the value of the certificates on its books. It also appears that CCL's certificates (unlike RCL's) have an expiration date, so I imagine there's an income reconciliation issue that costs more than the deferred revenue that it finally recognizes.

[mn_isla_girl]

appears that CCL's certificates (unlike RCL's) have an expiration date,

 

Yes, using Carnivals Future Cruise Voucher, you must book within 2 years of purchase and sail within 3.

[cruisegirl1]

"low economic performance". Under current GAAP and FASB rules, a company can't book (recognize) revenue until the service is actually used, or the certificate expires. I suspect CCL isn't getting enough pick-up (people actually using the certificates to book cruises) to offset the accrued cost of carrying the value of the certificates on its books. It also appears that CCL's certificates (unlike RCL's) have an expiration date, so I imagine there's an income reconciliation issue that costs more than the deferred revenue that it finally recognizes.

 

Never imagined I would see GAAP referenced on a cruise message board!

 

M

[megr1125]

Never imagined I would see GAAP referenced on a cruise message board!

 

M

 

Me either...LOL

 

That said, and maybe it was just my experience on the 2 CCLs I took, but it wasn't really promoted very well either..again, just my experience....

 

Royal seems to sell a lot of them.....and they get converted...in fact i am bummed that i don't have any left......:(

[bajathree]

It's really no big deal...it's only the future cruise "certificates" they are cancelling...you can still book a future sailing on-board and get the OBC....would not be surprised in the least if Royal follows. I would think the cruise lines want actually 'bookings"....not just sell blank certificates.

[FLACRUISER99]

appears that CCL's certificates (unlike RCL's) have an expiration date,

 

Yes, using Carnivals Future Cruise Voucher, you must book within 2 years of purchase and sail within 3.

And pay the balance of the deposit when you book your cruise,

[vickiw0318]

I don't book on board all that much, but it seems to me that when I do, there are only so many spots available to sign up to a see a Loyalty Ambassador and that they are, in a way, "pushing" the purchase of a future cruise certificate since there are applications for these available at the sign-up area. To sell more actual cruises on board, they would need additional staff.

[swwake]

"low economic performance". Under current GAAP and FASB rules, a company can't book (recognize) revenue until the service is actually used, or the certificate expires. I suspect CCL isn't getting enough pick-up (people actually using the certificates to book cruises) to offset the accrued cost of carrying the value of the certificates on its books. It also appears that CCL's certificates (unlike RCL's) have an expiration date, so I imagine there's an income reconciliation issue that costs more than the deferred revenue that it finally recognizes.

You MUST be a fellow accountant. You're speaking my language!

 

Never imagined I would see GAAP referenced on a cruise message board!

 

M

+1!

[canucks604]

Never imagined I would see GAAP referenced on a cruise message board!

 

M

 

Me either, LIKE!

[yogimax]

Once again, a thread is started suggesting a lessening of the RCCL cruise experience.

 

There is absolutely nothing to indicate that RCCL is concsidering this.

 

Instead, why not post some enhancements RCCL can make to better the cruise experience?

[KroozFoolz]

appears that CCL's certificates (unlike RCL's) have an expiration date, And pay the balance of the deposit when you book your cruise,

Not the balance but the FULL deposit amount - the cost of the fcc is not applied toward the deposit, but credited toward the final payment amount.

[TWELVEOHONE]

And before I get bashed about the "hating each other" statement I'd suggest you read "Devils on the Deep Blue Sea". There is some serious bad blood between Arinson and Fain. :eek:

 

GREAT book I read it twice now.

 

BTW, a negative about future cruise certificates

The on board credit cannot be combined with shareholders OBC.

The shareholders OBC is more than Future Cruise one

[orville99]

Not the balance but the FULL deposit amount - the cost of the fcc is not applied toward the deposit, but credited toward the final payment amount.

 

You've conflated two quotes into one. I never said this. My statement ends with "(unlike RCL's) have an expiration date".

[KroozFoolz]

orville99 -

hmmm.... looks like you did the same thing - attributing my post as being made by mn-isla-girl - perhaps the fault is neither yours nor mine, but cc.:rolleyes:

[orville99]

orville99 -

hmmm.... looks like you did the same thing - attributing my post as being made by mn-isla-girl - perhaps the fault is neither yours nor mine, but cc.:rolleyes:

 

 

Yep, looks like ol CC has a hitch in its get-along:o Sorry about that.

[VegasMark]

GREAT book I read it twice now.

 

BTW, a negative about future cruise certificates

The on board credit cannot be combined with shareholders OBC.

The shareholders OBC is more than Future Cruise one

 

True for Royal, but not for Carnival. I recently went on a week long cruise to the Mexican Riviera on Carnival Splendor. It was a great cruise! We paid about $900 for two of us and I got $250 in OBC ($100 each for shareholder and future cruise booking, and $50 from our travel agent). I'll miss that combined credit on Carnival.

[time4u2go]

I agree, as CCL must really be in trouble with the Concordia tragedy.

 

Not really. Their quarterly earnings are in line with other major cruise lines.

[kruzerci]

"low economic performance". Under current GAAP and FASB rules, a company can't book (recognize) revenue until the service is actually used, or the certificate expires. I suspect CCL isn't getting enough pick-up (people actually using the certificates to book cruises) to offset the accrued cost of carrying the value of the certificates on its books. It also appears that CCL's certificates (unlike RCL's) have an expiration date, so I imagine there's an income reconciliation issue that costs more than the deferred revenue that it finally recognizes.

 

Looks like there are other accountants on here :D

[tahqa]

And before I get bashed about the "hating each other" statement I'd suggest you read "Devils on the Deep Blue Sea". There is some serious bad blood between Arinson and Fain. :eek:

 

GREAT book I read it twice now.

 

Seriously great book. I wish more people would read it as it provides some great insight as to why things are the way they are in the cruise industry. :)

[BillB48]

I found it a fascinating book. A good read for anyone interested in the cruise industry.

[poncho1973]

Awful, weird flashbacks to The Principles of Financial Accounting class... on a cruise forum. WEIRD