Carnival and the economic downturn

[Kurbanfan]

Do you fit the profile of the Carnival Cruiser in tightening your belt?

 

Length and Depth of Economic Downturn

The average cruise ship passenger is passenger is 46 years old and makes $93,000 per year.

 

Where does the average cruise ship passenger live:confused:

[Mikew0805]

 

Not sure that I agree that living frugally isn't realistic for many folks - frankly, lots of people who bought homes and other "stuff" that they couldn't afford and have now lost them, are probably wishing that they had lived more within their means. It really hurts to lose possessions that you've gotten used to (I know), but there is a freedom that feels so good when you're not burdened with tons of debt.

 

Yes, but there are most that bought homes they COULD afford, but no longer can... I don't call that living outside your means by any stretch.

 

Living without debt is nice ( CC debt that it ) I still have an auto loan that I intend to carry to contract term date. I think a lot of people have to experience being out of control with debt, before they will fix it. That is how we were, and now we live credit card debt free.

[Mikel1733]

Dam* it to hel* . . . what in the heck happend? Why has our country . . . as well as all the countries in the civilized world . . . gone to hel* in a handbag? I'm totally naive (sp) as to how, when, what and why we are in this ressession or depression. All of us are losing retirement funds right and left and I just don't understand how the "big wigs" of these companies are walking away with millions of dollars when the majority of us are losing our life savings. I'm sorry . . . didn't mean to vent but this is so darn frustrating. I'm a single female that is pinching pennies to take my cruise in January and Heaven only knows if I'll be able to take another cruise any time soon. :(

 

I understand your frustration. Collectively we are all paying for this mess. Some have savings devastated, some lose jobs, and it makes us all weary just wondering how it will all eventually pan out. Enjoy your cruise in January.

[Mikel1733]

Where does the average cruise ship passenger live:confused:

 

That I don't know K. I would guess these days those within driving distance of a port. I'm sure all the demographics will change over the next year or two.

[Mikel1733]

Carnival trading under $21 per share this afternoon. If it breaks $20 on a closing basis mid teens coming up.

[dan40]

Where does the average cruise ship passenger live:confused:

 

Who's average?:rolleyes:

 

One foot in boiling water, one foot in freezing water, on average, you should be comfortable.:D

 

Dan

[browneyes7]

Do you fit the profile of the Carnival Cruiser in tightening your belt?

 

Length and Depth of Economic Downturn

The economic model Carnival used must show the economic recession to be short and shallow with a robust expansion in the third and fourth quarters of 2009. Whatever economic assumptions are being made, it is a guess.

But the cruise line industry is very susceptible to the impacts of recessions. The average cruise ship passenger is passenger is 46 years old and makes $93,000 per year. This translates to 83% of all passengers still working for a living. Working people in a recession tend to forgo vacations and have to be induced with steep discounts. This is why the length of a recession has major impacts on Carnival’s bottom line.

Off subject but still important, average working people worldwide have seen a reduction in their retirement accounts, as well as the homes they live in. Even if this recession is shallow and short, Carnival will be faced with demand destruction as this segment forgoes vacations to rebuild their retirement accounts.

(Seeking Alpha)

 

My DH and I are retired teachers, and together, we don't make that much money. We have been frugal and have saved money, and have two cruises booked, one paid for and one over half paid for. So, we plan to continue cruising until we can't afford it anymore!!!

[browneyes7]

I was wondering how the cruise lines have come up with the median income for their passengers? I don't know about the rest of you, but I have not shared that information with the cruise line EVER.

 

I realize the cruise line will know your age from the information on your passport, drivers license, and birth certificate so they certainly can come up with an average age for their passengers. I don't know how they know the average income of their guests though. Maybe someone can enlighten me on that!

 

If you fill out a Carnival comment card, there is a place asking what your yearly income is. I'm sure you can leave it blank, if you want to. I always fill it out. It doesn't matter to me.

[wiprwill]

We will be cruising the 10th of Jan 2009 and paid for in full So we are going my wife and I are 32 Make Decent money Architect and Engineer.

Our retirement has been hit:eek: but we have plenty of time to wait it out.

[MadManOfBethesda]

The key is "household income". The median cruiser is 46 with household income of $93k.

Thanks for posting that additional information.

 

I think that the people who are posting that they don't meet the demographic don't understand what median means. The median is simply the point at which 50% of all cruisers are over age 46 and 50% are under age 46. It also means that 50% have a hosehold income of more than $93k and 50% have a household income of less than $93k.

 

So by definition, everyone falls into that demographic.

 

[RizzoLee]

Thanks for posting that additional information.

 

I think that the people who are posting that they don't meet the demographic don't understand what median means. The median is simply the point at which 50% of all cruisers are over age 46 and 50% are under age 46. It also means that 50% have a hosehold income of more than $93k and 50% have a household income of less than $93k.

 

So by definition, everyone falls into that demographic.

 

 

 

I was wondering about that one myself - I scratched my head when I first saw the original post about cruiser demographics - it's missing the word 'household' income. I felt better when I realized the difference!

[disfan13]

Yes siree! Interesting times here at ye olde bank....

 

My Partner has many, many shares of Wachovia stock in his old 401K that he left there. It was doing well for a while!

 

The economy has played a role in how we will vacation for the next year or so.

 

That demographic surprises me a bit - that each cruiser's average salary is $93K - while the average household income in the country is much lower than that. Interesting. I'm younger than the average cruiser, not by much though :(...

[Mikel1733]

Carnival stock is at $17.20 this morning and RCCL has eliminated their dividend. Looks like times are getting tougher.