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Carnival to emerge leaner and more profitable


jimbo5544
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I don't fully agree with the stories numbers, I think quite a few people would not have cruised on a bigger ship or different port/itinerary if xyz ship had been taken out of service.

I for one specifically used Paradise from Tampa because I liked the idea of a smaller ship and Tampa is very convenient for me.

Same for my MSC Armonia cruise last year, it was the ship and Cuba that made my decision.

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8 minutes ago, quattrohead said:

I don't fully agree with the stories numbers, I think quite a few people would not have cruised on a bigger ship or different port/itinerary if xyz ship had been taken out of service.

I for one specifically used Paradise from Tampa because I liked the idea of a smaller ship and Tampa is very convenient for me.

Same for my MSC Armonia cruise last year, it was the ship and Cuba that made my decision.

Huh? How can you argue with actual accounting figures? Your proximity to Tampa and like of smaller ships have  nothing to do with expenses,  operating costs, revenue, etc.

 

Business is business and they are cutting the fat.

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I think it's an interesting read. When booking we look at destination first and ship last. We have yet to book any cruise because we wanted a specific ship. I will admit that I am more hesitant to sail on the uber-mega-massive ships because of safety concerns. If the emergency escape plan includes using a body shoot for several floors ... no thank you.

I have seen these systems on the huge ships.





I do hope Carnival comes out of this strong. It's a terrible time globally right now and it is sink or swim for many corporations. Adapting will be mandatory for survival. We have enjoyed our trips with Carnival and hope to have many more to come.

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16 minutes ago, RozWazowski said:

I think it's an interesting read. When booking we look at destination first and ship last. We have yet to book any cruise because we wanted a specific ship. I will admit that I am more hesitant to sail on the uber-mega-massive ships because of safety concerns. If the emergency escape plan includes using a body shoot for several floors ... no thank you.
 

those chutes is for crew members only, regular passengers like us board the lifeboat on the lifeboat deck wherever that is like on the outside promenade deck

 

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those chutes is for crew members only, regular passengers like us board the lifeboat on the lifeboat deck wherever that is like on the outside promenade deck
 
I saw they are intended for crew only. However in a real emergency I think they will be used as needed. Also one of the videos I saw showed the animated people using it and one of them was carrying a baby.

Ideally no emergency evacuation plan would be needed.

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1 hour ago, cruizergal70 said:

Huh? How can you argue with actual accounting figures? Your proximity to Tampa and like of smaller ships have  nothing to do with expenses,  operating costs, revenue, etc.

 

Business is business and they are cutting the fat.

 

Well, this wasn't one of the numbers. But the conclusion of the article states "(T)he disposed ships will be replaced by larger and more efficient tonnage that will likely command higher ticket revenues and onboard spending while incurring lower operating costs." Which conveniently neglects to mention there is a very large cost in constructing the new ships that should also be included, while the old ones were paid for.

 

And I don't know enough about the definition of operating costs to say whether it's reasonable to assume the 18 ships are 12% of operating costs just because they were 12% of the fleet. Is new ship construction included in operating costs? Because the old ships didn't incur any of that, though they would be more likely to need dry dock work as older ships. But, being smaller, they also need less crew and consume less fuel and provisions than the average Carnival Corp. ship, all of which is presumably included as operating costs.

 

Carnival isn't so stupid that they were running ships that were losing them money. But it is plausible that these ships had a profit margin of, say 5% while the rest of the fleet had a profit margin of 10% (just made up numbers as an example), thus making them the company's weakest performers despite being profitable. So Carnival would make more money with those 18 ships in the fleet, but would make more money per share without them. Thus making Wall Street happier. (That last part is way out of my area of expertise, so may be entirely wrong)

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Judging from the prices out of Galveston, higher prices. Same number of people booking fewer ships.

 

I cant believe how cheap royal is vs carnival.

 

Look at liberty april 25, I'm looking solo. I think 593 plus taxes, it couldn't go lower, but insides now showing at sometime like 576 plus taxes, and 2 pts solo. Too bad I can only book that date once!! That also is showing a texas discount, but still a cruise on liberty out of Galveston for under $700 used to be unheard of. I already have my deluxe balcony booked but seeing insides and ov down even more .. I'll take 12 please . Well on my way to pinnacle. Lol. 

 

I cant touch rcl prices out of Galveston. Show me a similar price for 7 days out of Galveston on carnival. 

 

Solo price with residential discount. 687 with taxes. April 25th. 2021. I only need 3 to hit diamond on carnival but carnival prices so much higher. .. one and that's too high!! 2 to go until carnival lowers prices. Carnival used to be cheaper, sure isn't now.  First as shows price pp and discounts, 2nd shows solo price including taxes and port fees. Rcl prices just keep sliding. I cant help taking advantage. 

 

2 more on carnival   ... after they lower prices., hard to get used to paying hundreds more for carnival. 

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47 minutes ago, glrounds said:

"Whistling through the cemetery" 🙄

I know this is a Carnival forum, but really,  does it matter?

 

Carnival could go belly up or it could survive. I wouldn't be bothered either way. I have $2500 paid for a cruise next year and I'm still not worrying. *shrug*

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29 minutes ago, cruizergal70 said:

I know this is a Carnival forum, but really,  does it matter?

 

Carnival could go belly up or it could survive. I wouldn't be bothered either way. I have $2500 paid for a cruise next year and I'm still not worrying. *shrug*

 

"To attempt to stay cheerful in a dire situation; to proceed with a task, ignoring an upcoming hazard, hoping for a good outcome."

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Interesting article.  As far as construction costs:  I am sure they are considering the costs to refurbish the older ships.  Updating the older ships has to be costly, not as much as building a new ship, but still something I am sure they consider.  We, personally, have never sailed anything smaller than a "spirit" class ship, we have never even considered a "fantasy" class ship due to not nearly as many amenities, very few balconies.  If CCL can pack more passengers on the newer larger ships & keep crew & operating costs lower per passenger, I can totally understand the decision.  I just think Covid pushed them to do it sooner.

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Carnival, along with all the other cruise lines have no alternative but to emerge leaner and more profitable. 
some have their back to the wall , some are highly leveraged , Others are leveraged and paying crazy high interest.

all have too emerge leaner and driving more profit.

i do believe even though they many have  cash reserves ultimately lines They will seek protection from courts either  pre planed or Not. At sometime in the future they would be insane not to seek protection .. 

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9 hours ago, cruizergal70 said:

Huh? How can you argue with actual accounting figures? Your proximity to Tampa and like of smaller ships have  nothing to do with expenses,  operating costs, revenue, etc.

 

Business is business and they are cutting the fat.


All those accounting numbers are pre COVID-19. No one knows with100 percent certainty what the demand for cruises will be once cruises resume from US ports. Personally I think demand will significantly decrease, which means accounting numbers will change significantly too when cruising resumes.  

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48 minutes ago, PhillyFan33579 said:


All those accounting numbers are pre COVID-19. No one knows with100 percent certainty what the demand for cruises will be once cruises resume from US ports. Personally I think demand will significantly decrease, which means accounting numbers will change significantly too when cruising resumes.  

 

Of course demand will be off, but will build back up. Carnival is right sizing and will be ahead of the curve, or at least ahead of other cruise lines. So far, Carnival prices have not plummeted which is what decreased demand would force.

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This is a pretty obvious statement. Having less inventory. Having more profitable inventory. Having a higher percentage of compelling inventory. These things will make them smaller, but raise the prices. 

 

The industry doesn't want the fantasy class. They want the Mardi Gras.

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