Carnival Corp. Net Bookings Up 17% Y/Y - Analyst Blog


Carnival Cruise Lines, a Carnival Corporation ( CCL ) 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 this period.

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 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 vacationers.

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 target.

Carnival Corporation presently has a Zacks Rank #2 (Buy). Some other stocks worth considering in the sector include Royal Caribbean Cruises Ltd. ( RCL ), Carmike Cinemas Inc. ( CKEC ) and ClubCorp Holdings, Inc. ( MYCC ). While Royal Caribbean holds a Zacks Rank #1 (Strong Buy), Carmike Cinemas and ClubCorp Holdings carry a Zacks Rank #2.

CARNIVAL CORP (CCL): Free Stock Analysis Report

CARMIKE CINEMA (CKEC): Free Stock Analysis Report

CLUBCORP HLDGS (MYCC): Free Stock Analysis Report

ROYAL CARIBBEAN (RCL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: CCL , CKEC , MYCC , RCL

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