From Flickr

Allure of the Seas Shipyard Report #1

Carnival

Who better to start things off than the Industry leader and cash machine Carnival Corp. The Miami based firm reported a net income of $252 million ($0.32 per share) with total revenues coming in at a whopping $3.2 billion. This time last year revenues were $2.9 billion.

Carnival Corporation Chairman and CEO, and in this writers opinion, the smartest man in the industry, Micky Arison stated, "We were encouraged to see revenue yields turn positive for the first time since late 2008. Improving revenue yields combined with an 8 percent capacity increase and ongoing cost control efforts offset significantly higher fuel prices." Regarding future bookings: "Considering recent global economic concerns and other world events our advance bookings are holding up reasonably well and remain in line with our expectations. We believe this will lead to earnings growth in both the third and fourth quarters. The summer season, which is our strongest and most important quarter of the year, is shaping up particularly well."

Intresting stat that caught my eye: fuel costs increased 64 percent to $498 /mt. Up from last year of $304 /mt.

Carnivals forecast for the next quarter is a positive one. They expect an increase of 5-6 percent from the Q3 2009. Not surprisingly, they anticipate fuel costs to increase $74 million compared to the prior year. But when you anticipate these things, you can build around them and not be caught off guard.

Royal Caribbean International

Rivals from the other side of town, Royal Caribbean, released their reports indicating that they too were in the positives for the quarter. RCI produced a net income of $61 million which is a significant improvement over the $35 million loss this time last year. Total revenue was $1.6 billion a 19% increase from last year. RCI tributes this to an increase in ticket prices and an increase in the number of people traveling. Perhaps due to the non-plummeting economy.

RCI sees a strong Q3 as guests are booking their summer cruises further in advance than last year.They anticipate that they will remain profitable.

Chairman and CEO of Royal Caribbean Richard Fain, the man that brought ground breaking innovations to the industry, stated: "I recognize that considerable angst exists regarding the state of the economic recovery. Like everyone else, I would prefer a more robust economy. However, we’ve always assumed a lackluster economic environment for 2010, and we’ve never counted on big improvements driving our results this year. Rather, we’ve assumed that our new and more-efficient ships, along with good cost control, would drive substantial improvements in profitability, and that is clearly proving to be the case."

Norwegian Cruise Line

Well NCL didn’t have that well of a quarter. They posted a loss of $14.9 million. Total revenue for the quarter was $477 million pretty much the same as last year. As with the other lines, fuel costs played a significant role. NCL’s quarterly fuel cost rose to $508 /mt up from $356 /mt. 

It is not all doom and gloom for NCL. They stated that their pricing, net yields and vessel occupancy were all up. For example the net revenue per passenger cruise day increased by 6.6 %. Add in the Norwegian Epic, and that should go up. Epic will hopefully be NCL’s Oasis of the Seas. Before you all get bent out of shape by that comment, let me explain. Oasis has been a financial success. It came as quite a surprise but not when you think about it. Oasis has a lot of catchy, attractive venues designed to get the passenger to spend more (i.e. increasing onboard revenue.) Epic seems to have more of these venues, especially all the restaurants that carry a cover charge. This is where the Epic could play a very crucial role in getting the struggling line back in financial shape.

NCL’s CEO, Kevin Sheehan stated: "Our improved results over last year were achieved while absorbing a 43 percent increase in the price of fuel."

In this writers opinion, I have been very impressive at what Mr. Sheehan has done. If you frequent the site, you should know I am not a very big fan of some (ok-pretty much all) of his predecessor, Colin Vietch’s decisions (NCL American anyone!). One of the first things that Mr. Sheehan stated he will do is a top-bottom review of the company’s finances and operational expenses. It seems that it is working.

TUI

Thompson Cruises parent company TUI reported a loss for Q2. The pretty much entirely European firm came in with a loss of 409 million pounds. Their revenue was 8.3 billion pounds, but they measure it in nine-month periods. Last year they also posted a loss of  304 million pounds with revenues of 8.2 billion pounds. As stated, TUI operates the British line Thompson Cruises along with a massive destination based holiday company (i.e. fly to destinations along with a charter airline.)

In conclusion, it appears that while the economy is still struggling, the lines aren’t necessarily struggling as bad. I contribute it to the strong backgrounds of the industry leaders, and the vulnerability of a line that is constantly walking the red line. These results don’t really surprise me. While it is great to see the big lines make a profit, a true test to see how the industry is doing, will be to see how the smaller lines, NCL do. Keep a close eye on the smaller lines, the time from when one books a cruise to when they sail, and cruise fares. Follow these and you’ll get a good picture of the industry.

Anyways, these photos come courtesy of Royal Caribbean’s Flickr.

RCCL is offering those onboard between $150 to $250 per cabin in onboard credit based on cabin booked.

Basically locals were getting annoyed that lines were sending more and increasing larger ships to their ports. Passengers were overwhelming tiny port towns and ruining the waterfront. The ships were also ruining the environment both above water, exhaust fumes, and below water, legal and illegal discharging.

The solution was a recent tax on every passenger (head tax) that called in each Alaska port. The lines couldn’t afford to pay this for the passenger so they passed it along to the passenger.

Then it was realized last year, the first year of the tax, that the Alaska cruise market was down as lines didn’t send as many ships there and people weren’t booking as many trips up there.

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So then came last March when Alaska officials came down to Miami for the annual cruise convention. Cruise executives lobbied the Alaskan government to help them out saying how great the industry was for then economy. Alaskan officials listened, and as of last Friday, AP is reporting that the cruise lines, in  a shocking partnership between Carnival and Royal Caribbean, dropped a lawsuit against the state. They said they would drop the suite if and only if the state passed a law that lowered the head tax. Which they did. [See Update]

Is this a win-win? They lines get a lower tax price, and the state gets money to (hopefully if its used right) clean the harborfront and environment.  It may seem so. But its is really up to the lines and passengers to be responsible and the state to use the tax money on nothing else other than what needs to be helped out in the fragile environment of Alaska.

An ironic saying goes something like: The lines were polluting the very nature they were selling.

UPDATE: Uber-Cruise-Website CruiseCritic is reporting the details on the law. This just seems like a sketchy deal, but these things happen:

Although the base head tax will only be lowered to $34.50 per person, Terry Harvey, a spokesman from State Rep. Cathy Munoz’s office, says cruise lines will be reimbursed [emphasis CruiseInd’s] an additional amount each time a ship calls in Juneau, Ketchikan or both. Refunds will total $7 per person for calls in Ketchikan and $8 per person for calls in Juneau; if a sailing calls in both ports (which 75 percent of Alaska cruises do), $15 per person will be refunded to the line, thus reducing the amount from $34.50 to $19.50 per person.

source: AP via MSNBC

updated: Cruisecritic

May 22, 2009	May 22, 2009	May 29, 2009

images from mortgagemobile.com

The current lifeboat structure has never before been used. The ship features 18, 370 pax boats. Until then, IMO regulation only called for 150 pax boats max. These new boats (model number CRV55 for those interested) feature a catamaran, twin hull, design for stability and a three tier seating structure. Most notably, other than their enormous size, is their positioning. The davits are fixed in a way that allow the boat to be stowed in the launch position. The boats hang over ocean and against the side of the ship. All they have to do is be lowered straight down. See the assortment of press photos below for more details.

	via Scat-Harding

from flickr	from flickr

So lets take a look at the changes to the program.

• Crown & Anchor Society members will be the only ones that will be allowed to book a cruise while on their cruise. They will be able to take advantage of huge savings by doing so. The more cruises you have, the more higher up you are in the program, the more you’ll save on future cruises. It only takes one cruise to join Crown & Anchor Society, so I guess its just a way to get more to join.
• Crown & Anchor Society members can now combine certain credits they accrue by being a member. i.e. a balcony discounts can now be combined with the above onboard booking savings. Still no way to add in the shareholder discount though.
• RCI will increase staff in the Crown & Anchor loyalty department. They act similar to a concierge to members.
• RCI will try to upgrade members cabin selection, Diamond level and up. When the ship isn’t sailing at full capacity and rooms are available higher up, they will attempt to contact you prior to sailing. These will be based upon past number of cruises.
• RCI will share deals and news with members via email now. Everything will be sent out to Crown & Anchor Society members first, and then open to the public.
• RCI will now send an enhanced Ultimate Vale Booklet to future cruises. These booklets feature discounts for onboard drinks, internet packages, etc.

A Royal Caribbean official also mentioned that there is more to come. When that happens, in days, weeks, months, it’ll be covered here.

As always, I pose the question: What do you think?

Here is to RCI and hoping that there isn’t a massive backlash towards them, because you know you can’t please everyone no matter what you do. So lets hope that it is kept to a minimum.

source myfoxnewyork.com

UPDATE TUESDAY MORNING: Still no official confirmation. Just a lot of chatter around the net. Although, it is said that the ship is supposed to be docked in St. Thomas today, yet the webcam shows her at sea so this story must have some truth to it.

I’ll check back in tomorrow morning and see if there have been any developments.

UPDATE 11:13pm: Found that it may have been a male crewmember. Capt Trym Selvag then announced that the ship will stay at sea and search. She is supposed to call on St. Thomas tomorrow. No word on the status on that situation.

This news is just breaking and still in a rumor stage. It has been reported that either a passenger or crewmember has been reported as missing. The ship then turned around began searching for him/her. Will post as I get the details.

To debut on Freedom and Liberty (Not Independence*)

Cupcake Cupboard. The shop will be on the Royal Promenade where the current barbers shop is. Like Oasis they will be sold for $2.50 per cup cake!(Talk about mark up, but it is extremely popular and if they can get that price then all the power to them!) The area is also available for classes and parties.

Outdoor Movie Theater. Princess were the first to offer the popular Giant Movie Screen By The Pool concept. The aqua theater does this on Oasis, so RCCL will place a 18.5 ft (which kinda seems small when you think about it) in the main Pool area.

Upgraded Shows. The as-yet-unannounced show will debut on the ships in 2011.

ImaginOcean Puppet Show. The kids area will feature this family puppet show/musical.

While we’re on the topic of revamped children’s areas, Royal Tots and Royal Babies will be there to cater to children from 36 months to 6 years.

Interactive Touch-Screen Displays will be added to provide pax with quick, easy access to onboard information.

* Independence of the Seas, due to her year-round status in the U.K., will feature different enhancements to be announced latter in the year.

Changes to Allure of the Seas (sister ship to Oasis)

The Boardwalk Dog House will be added to, you guessed it, the boardwalk. The venue will offer a wide selection of sausages, hot dogs, and brats. So far it looks to be free! It will be moves to the donut shop. The donut shop will be moved next to the ice cream shop where some seating currently is.

Rita’s Cantina, a So-Cal taqueria/Mexican beach bar will replace the Seafood Shack. The fee for the restaurant will be $4.95 compared to the $8.95 for the Seafood place.

RCI will introduce the first Guess Store at sea. Just like they did with the Coach store, this store will sell high end designer handbags, watches, shoes, jewelry and glasses. The store will replace the Focus Photo Shop, which will move to the photo gallery.

Guest Kiosks will be present. Carnival introduced these in the form of "FunHubs." Located in the Royal Promenade, guests will have the ability to view their bill, the daily calendar, spa appointments, dinner reservations, and the ability to print out airline boarding passes. No access to the unrestricted web though.

Following the onslaught on 3D technology that debuted at the 2010 CES, Allure will feature 3D Movies in the main theater. No word on whether or not you need glasses or if its glasses free.

AquaTheater will feature a new show called Blue Planet.

In-Cabin iPod Docks (mist likely iHomes) will be in all cabins.

There are rumored to be further slight tweaks to differentiate her from Oasis.

Will report back when they are announced.

Also, correct me if I’m wrong, but her first sea trials are still set for May 15th. Seeing her take to the open ocean (although it’ll only be the Baltic Sea) for the first time must be astonishing.

source: Folke Österman via (shipspotting.com)

UPDATE 1:38pm: Apparently the reason its missing one of the funnel pieces is because it’s retracted. This, i assume to be, is so that it passes under the Great Belt Bridge in Denmark. The maximum clearance of the Bridge is 65 meters, and Freedom of the Seas height was 63.7 meters.