Carnival Cruise Lines, a
) brand recorded 17.0% higher net bookings year over year for the
month of Jan 2014. The company has set a one month reservation
record by making net bookings for more than 565,000 guests during
CARNIVAL CORP (CCL): Free Stock Analysis
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The company recorded an increase in bookings across its 24-ship
fleet that cruises from several North American homeports as well
as from Australia. Apart from record level bookings, the cruise
line's web site www.carnival.com was visited by 13 million
customers during the one month period, an all time high.
The unprecedented numbers can be attributed to uninterrupted
product enhancements, and attractive promotions like the "Moments
that Matter" advertising campaign that is currently being
broadcast on digital channels. Other initiatives that led to
record bookings include varied entertainment options for its
guests and a vacation guarantee as per which customers can leave
for home at the company's expense if they are not satisfied.
The company also introduced a Fun Ship 2.0 product enhancement
worth $500.0 million across the fleet that offers additional
dining, bar and entertainment options to customers. In 2014, the
company targets to implement this program on all its cruises that
sail from Miami, Fort Lauderdale, Port Canaveral, Tampa, New
Orleans and Galveston.
The company's cruise brands are well diversified across
geographic regions and strategically positioned at various price
points within the larger North American cruise market. This
enables the company to cater to passengers in various geographic
regions as well as within the contemporary, premium and luxury
cruise segments. With the strength and diversity of its brands
and itineraries, the company has been successful in capturing a
broader passenger base among potential and repeat cruise
At its fiscal fourth quarter earnings call in Dec 2013, the
company also indicated that though it expects revenue yield to
decline in fiscal first quarter of 2014, it is expected to
improve in the second half of the year driven by a better booking
environment and higher ticket pricing. We believe, at the current
pace of initiatives, it will not be difficult to achieve its
Carnival Corporation presently has a Zacks Rank #2 (Buy). Some
other stocks worth considering in the sector include
Royal Caribbean Cruises Ltd.
Carmike Cinemas Inc.
ClubCorp Holdings, Inc.
). While Royal Caribbean holds a Zacks Rank #1 (Strong Buy),
Carmike Cinemas and ClubCorp Holdings carry a Zacks Rank #2.