CCL's stock price

[Stosh68]

Cruise Corporations make their profits from on board sales, aka alcohol, casino, excursions, spas etc.  Ticket sales don't even meet their expenses.  You can look at the financial statements and see for yourself.  Getting people onto the ship is the goal, and if "giving away" $100 in funny money convinces somebody to use CCL and not NCL or to be more loyal to CCL then that's wonderful.  

[ontheweb]

3 hours ago, ldtr said:

Compared to other marketing program  expenses that Princess funds it is a pretty small amount. the obc benefit is exactly that a marketing program that covers all of the CCL lines. 

 

It is one of the lowest cost marketing programs since unlike others it is 100% effective. The dollars only get spent when a cruise is paid for and taken. Even better it is OBC so real cost is even lower.

At the time Carnival Corporation stock really tanked due to the onset of Covid, many on these boards were sure that the stockholder OBC would disappear entirely or at least they would require double the number of shares needed to qualify. I along with some others said no, it is a cheap marketing tool that costs them next to nothing. And we have been proven to be right.

[jwattle]

6 hours ago, c-boy said:

this stock is in our investment portfolio under the heading "Novelty stocks" .  We're not looking for a return any time soon, hell I might be six feet under before there is one . 

You DO get a return though, in OBC every time we cruise 🥰, your TA, assistant, and whatever other title I have this week, makes sure that it's applied 

5 hours ago, Ken the cruiser said:

Really? We just spent $15K for a cruise so we could get the $100 OBC perk. I don't think anyone at CCL is calling us a liability. 🤣

Same, and we'll keep doing it! We're also not the ones who "don't spend onboard", even though we're seasoned cruisers. We buy the package, etc., so no, no liability here. 😄

 

Edited October 6, 2023 by jwattle

[BlerkOne]

4 hours ago, Ombud said:

I'm a glass 1/2 full person. Correction (aka recession) will be short lived, the world won't end, and I'll see some of you onboard!!

a Carnival brand cruise line. 🙂

[BlerkOne]

2 hours ago, ontheweb said:

At the time Carnival Corporation stock really tanked due to the onset of Covid, many on these boards were sure that the stockholder OBC would disappear entirely or at least they would require double the number of shares needed to qualify. I along with some others said no, it is a cheap marketing tool that costs them next to nothing. And we have been proven to be right.

Even post 9-11 the shareholder OBC remained. Still just 100 shares.

[SCX22]

6 hours ago, Stosh68 said:

Getting people onto the ship is the goal, and if "giving away" $100 in funny money convinces somebody to use CCL and not NCL or to be more loyal to CCL then that's wonderful.  

 

I don't think the "funny money" that you speak of tips the scale.  Princess Cruisers are set in their ways.  The older demographic that frequents Princess will cruise Princess with or without the OBC.  Where is this older demographic to go?  It's been brought up numerous times on this board that RC, NCL, and Carnival are a no go because of the families and children, which the older generation that cruise on Princess don't want to vacation with.  The more premium cruise lines are most likely out of reach for many (ahem, making a big deal over OBC just for owning 100 shares) and offer a more sedate experience as compared to Princess.

 

Not sure what the figure of shareholder's OBC is doled on every Princess cruise, but whatever the figure is, that money could be increasing revenue.  Every penny counts in CCL's financial predicament.  The shareholder's OBC goes towards the onboard sales, not towards the cruise fare.  Which as you correctly point out is the bread and butter of cruise line revenue.  It's no coincidence that Princess made the decision to make shareholder's OBC non-refundable.

 

Put simply, any cruise line's shareholder perks is quid pro quo bribery.  

[Guest ldtr]

2 minutes ago, SCX22 said:

 

I don't think the "funny money" that you speak of tips the scale.  Princess Cruisers are set in their ways.  The older demographic that frequents Princess will cruise Princess with or without the OBC.  Where is this older demographic to go?  It's been brought up numerous times on this board that RC, NCL, and Carnival are a no go because of the families and children, which the older generation that cruise on Princess don't want to vacation with.  The more premium cruise lines are most likely out of reach for many (ahem, making a big deal over OBC just for owning 100 shares) and offer a more sedate experience as compared to Princess.

 

Not sure what the figure of shareholder's OBC is doled on every Princess cruise, but whatever the figure is, that money could be increasing revenue.  Every penny counts in CCL's financial predicament.  The shareholder's OBC goes towards the onboard sales, not towards the cruise fare.  Which as you correctly point out is the bread and butter of cruise line revenue.  It's no coincidence that Princess made the decision to make shareholder's OBC non-refundable.

 

Put simply, any cruise line's shareholder perks is quid pro quo bribery.  

The shareholder obc has always been non refundable. It is the veterans benefit that has recently been changed to non refundable.

 

We sail on several different lines. 7 thus year from 50 passenger ships to the main stream lines like Princess. The OBC definitely impacts when we select Princess. All.part of the cost calculation from a given itinerary. The OBC has far less impact on the line than a similar sized fare reduction, since there is less percentage income on actual cost. While there is opportunity cost, in some cases it is spent on things onboard that otherwise would not be purchased.

 

So it does impact the decision process for many, and the impact on revenue to the line is less that any other similar reduction.

 

Even for people that can easily afford and do sail on other lines including premium such as Oceania and Luxury such as Regent.

[SCX22]

21 hours ago, ldtr said:

The shareholder obc has always been non refundable. It is the veterans benefit that has recently been changed to non refundable.

 

We sail on several different lines. 7 thus year from 50 passenger ships to the main stream lines like Princess. The OBC definitely impacts when we select Princess. All.part of the cost calculation from a given itinerary. The OBC has far less impact on the line than a similar sized fare reduction, since there is less percentage income on actual cost. While there is opportunity cost, in some cases it is spent on things onboard that otherwise would not be purchased.

 

So it does impact the decision process for many, and the impact on revenue to the line is less that any other similar reduction.

 

Even for people that can easily afford and do sail on other lines including premium such as Oceania and Luxury such as Regent.

 

What other mass market cruise lines can the older generation that like Princess' cruising take their business to?  Recently there were changes made to room service and casual dining which caused an up roar on the board.  Many cried foul, despite their disagreement with the changes are still cruising with Princess.  The luxury niche lines have pricing that isn't for the masses, effectively removing them from the mass market category.  Consider yourself fortunate if you can afford these lines.  I highly doubt CCL's removing shareholder's OBC will cause a drop in bookings.  If the past is any indication, it will set a precedent in which other cruise conglomerates will follow suit.

[BlerkOne]

It's a good thing cruise lines aren't run by armchair admirals. This Princess cruiser sails on other lines, and isn't set in my ways. I adapt to the current cruise line.

 

As for shareholder OBC, it isn't to get people to cruise, it is to get people to spend. It is hard for many to leave money on the table and they will overspend the monopoly money. It is brilliant marketing. Carnival Corp may suspend the stock dividend but I don't recall the shareholder OBC ever being suspended. 

 

[Ombud]

2 minutes ago, BlerkOne said:

Carnival Corp may suspend the stock dividend

Minor correction: dividend suspended 3/2020. Don't see it returning any time soon

[BlerkOne]

35 minutes ago, Ombud said:

Minor correction: dividend suspended 3/2020. Don't see it returning any time soon

I guess to clarify my statement - they may suspend like they have currently, but they don't touch the shareholder OBC 

 

They also suspended the dividend after 9/11. It returned. The current suspension will also pass. When it returns, it will be a token dividend and increase as profits increase. 

[Guest ldtr]

3 hours ago, SCX22 said:

 

What other mass market cruise lines can the older generation that like Princess' cruising take their business to?  Recently there were changes made to room service and casual dining which caused an up roar on the board.  Many cried foul, despite their disagreement with the changes are still cruising with Princess.  The luxury niche lines have pricing that isn't for the masses, effectively removing them from the mass market category.  Consider yourself fortunate if you can afford these lines.  I highly doubt CCL's removing shareholder's OBC will cause a drop in bookings.  If the past is any indication, it will set a precedent in which other cruise conglomerates will follow suit.

If they were as limited on funds as you indicate then it might be the difference between cruising or not.

 

If they are limited then the family focused mass market lines are certainly less expensive as well as some of the European focused lines.

 

If they are not limited then there are certainly other choices.

 

Apparently CCL disagrees with you since they have consistently kept the shareholder discount in place across all of their brands.

[SCX22]

11 minutes ago, ldtr said:

 

Apparently CCL disagrees with you since they have consistently kept the shareholder discount in place across all of their brands.

 

One can suggest.  The cruise lines are making cuts every where and this is one benefit that would affect few rather than all cruisers.

 

As you have said, if money wasn't so tight for a cruiser, what's a $100 or $200 here or there?  Having said that, you'd be surprised at just how many cruisers cruise Princess for the price.  There's plenty who cruise months out of the year rather than once or twice a year.  Wouldn't dream of doing that on the luxury niche lines.

Edited October 7, 2023 by SCX22

[ontheweb]

6 hours ago, BlerkOne said:

It's a good thing cruise lines aren't run by armchair admirals. This Princess cruiser sails on other lines, and isn't set in my ways. I adapt to the current cruise line.

 

As for shareholder OBC, it isn't to get people to cruise, it is to get people to spend. It is hard for many to leave money on the table and they will overspend the monopoly money. It is brilliant marketing. Carnival Corp may suspend the stock dividend but I don't recall the shareholder OBC ever being suspended. 

 

Yes, it is a marketing tool that costs them next to nothing. There is a good reason that they routinely extend this benefit to shareholders.

[Guest ldtr]

1 hour ago, SCX22 said:

 

One can suggest.  The cruise lines are making cuts every where and this is one benefit that would affect few rather than all cruisers.

 

As you have said, if money wasn't so tight for a cruiser, what's a $100 or $200 here or there?  Having said that, you'd be surprised at just how many cruisers cruise Princess for the price.  There's plenty who cruise months out of the year rather than once or twice a year.  Wouldn't dream of doing that on the luxury niche lines.

Funny thing is you state at one point that the obc does not matter then in another post you indicate that it dies. too funny.

[Cruisemeister2002]

On 10/5/2023 at 1:29 PM, PrincessLuver said:

 

As interest rates go higher investors are moving their money away from stocks and using other financial instruments where they can to make more money with the higher rates.  Inflation is taking its' toll too.

Then who knows what is going to happen now to the economy with the upheaval and dysfunction in DC?

Stocks may be headed for the doldrums for a long time. 

Must admit although I still have a Stocks and Shares Isa I have withdrawn all of my money, what little I had, out of Stocks and Shares. They really haven't done well for quite a long time. Most of what I have I have tied up in 2 or 3 year bonds at between 5.65% and 5.80%. I sold my small holding of 100 CCL shares at £13.40 having had £150 OBC on a P&O cruise in March. I had bought them at £6.99 and decided due to my age that although I hope to take a few more cruises it will only be one per year and I am 73 now.

[SCX22]

4 hours ago, ldtr said:

Funny thing is you state at one point that the obc does not matter then in another post you indicate that it dies. too funny.

 

If a cruiser can afford to cruise with Princess, really, what's a $100 or $200 OBC here or there for shareholders?  Like I said before, I doubt that that tips the scale for the average Princess cruiser/shareholder.  That type of cruiser, especially the ones that are price sensitive, will cruise with Princess regardless.  Princess prices are low to begin with, shareholder's OBC aside, for both fares and onboard amenities (i.e. Plus/Premium fare packages, shore excursions, etc.) compared to other mass market cruises lines.

 

That $100 or $200 OBC per cabin in the aggregate makes a difference for Carnival (and other cruise lines) who are drowning in their finances because of borrowing and inflation.  Hence all of the amenity cuts.

 

There is disagreement here.  All I can say is CCL/Princess employees read this board so it's OK to air your thoughts.

[BamaVol]

9 minutes ago, Cruisemeister2002 said:

Must admit although I still have a Stocks and Shares Isa I have withdrawn all of my money, what little I had, out of Stocks and Shares. They really haven't done well for quite a long time. Most of what I have I have tied up in 2 or 3 year bonds at between 5.65% and 5.80%. I sold my small holding of 100 CCL shares at £13.40 having had £150 OBC on a P&O cruise in March. I had bought them at £6.99 and decided due to my age that although I hope to take a few more cruises it will only be one per year and I am 73 now.

I paid $1,090 for 100 shares less than a year ago.  I have received $200 in OBC to date and expect another $100 in June.  That’s a $300 return in 18 months, that’s an 18% annualized return.  So it’s doing better than your 5.XX% for me.  I’m 70 and expect to cruise at least once a year for another 10 years, should I live that long. I’m not counting on it, but maybe the stock will still have at least $1,090 value when I’m ready to stop cruising and sell.

[BlerkOne]

The shareholder OBC is at the corporate and not individual cruise line level and is a corporate marketing tool. That some seem to think it is real money proves that it works.

[Cruisemeister2002]

9 minutes ago, BamaVol said:

I paid $1,090 for 100 shares less than a year ago.  I have received $200 in OBC to date and expect another $100 in June.  That’s a $300 return in 18 months, that’s an 18% annualized return.  So it’s doing better than your 5.XX% for me.  I’m 70 and expect to cruise at least once a year for another 10 years, should I live that long. I’m not counting on it, but maybe the stock will still have at least $1,090 value when I’m ready to stop cruising and sell.

Good luck. I looked at it like this.If I do one cruise a year for the next 4 years which would be my maximum amount and I doubt very much they would be cruises where I would get £150 OBC. Therefore the £600 I made on my Carnival shares would be minimum plus 4 years OBC maybe up to six or 7 years and we are Caribbean tier or Elite on P&O/ Princess so 10% discount on any £150 or the same value in dollars. I do know that several of the fund dealers are saying Carnival is a BUY. But I prefer the guarantee of knowing what interest i will receive. I'm not a high flyer, a wealthy business man or have a pot of gold stashed away. I love cruising and believe, considering I have never earnt really large wages that I have done pretty well to have had 17 cruises since 2002 and due to Covid I missed four years of cruising.

[BlerkOne]

1 minute ago, Cruisemeister2002 said:

 I do know that several of the fund dealers are saying Carnival is a BUY.

With absolutely no qualifications, I think there are better options than cruise lines. But the shareholder credit is safe, and I don't see the cruise lines folding unless additional catastrophes come along.

[Cruisemeister2002]

6 minutes ago, BlerkOne said:

With absolutely no qualifications, I think there are better options than cruise lines. But the shareholder credit is safe, and I don't see the cruise lines folding unless additional catastrophes come along.

I agree. It does make you wonder whether Carnival will reach the heady heights of £40 a share seen a handful of years ago before the pandemic and let's face it you only need another Covid, a war or heaven forbid a shipping disaster to tilt a fragile situation into another crisis. It does concern me when you have this constant desire by cruise company's to go for larger and larger ships such as the one Royal Caribbean have coming into service in 2024 at 250,000 tonnes and nearly 10,000 passengers and crew. Don't fancy the embarkation, disembarkation and shore ports of call with that amount getting on and off. Not that it will affect the UK anyway, but I prefer ships with the maximum of 3,000 passengers and even better those of 2,000 or less.

[BamaVol]

54 minutes ago, Cruisemeister2002 said:

I agree. It does make you wonder whether Carnival will reach the heady heights of £40 a share seen a handful of years ago before the pandemic and let's face it you only need another Covid, a war or heaven forbid a shipping disaster to tilt a fragile situation into another crisis. It does concern me when you have this constant desire by cruise company's to go for larger and larger ships such as the one Royal Caribbean have coming into service in 2024 at 250,000 tonnes and nearly 10,000 passengers and crew. Don't fancy the embarkation, disembarkation and shore ports of call with that amount getting on and off. Not that it will affect the UK anyway, but I prefer ships with the maximum of 3,000 passengers and even better those of 2,000 or less.

I think your opinion of a Carnival stock as an investment is very much dependent on the price you pay.  I’ve been burned on any number of stocks, but most started out a lot higher in price than the ~$11 a share I paid.  I’m not wealthy but I can afford to lose $1000. If I lose $4-6000, I’m kicking myself. The hospitality industry is not for cowards like me.

[richstowe]

I don't think CCL will eliminate the shareholder and veteran benefit programs but they very well might stack them. In other words, use one or the other but not both. Some will squawk but the bad pr will be limited. RCL does this. (I'm not saying they should do so)

[Mike07]

37 minutes ago, richstowe said:

I don't think CCL will eliminate the shareholder and veteran benefit programs but they very well might stack them. In other words, use one or the other but not both. Some will squawk but the bad pr will be limited. RCL does this. (I'm not saying they should do so)

 

I think we're already here... vets can no longer receive military and shareholder credit. Though a cabin with double occupancy can receive one of each or two vet credits. I don't think you could ever receive two shareholder credits though.