Article: Bookings/fares rise

[jleq]

http://www.usatoday.com/travel/cruises/item.aspx?type=blog&ak=76310.blog&csp=34

[steponboard]

Royal Caribbean Cruises (RCL), already on the defensive over its decision to drop anchor in Haiti days after a devastating earthquake, could take more lumps after it reports its fourth-quarter and year-end figures Thursday.

 

The parent company of Royal Caribbean International and Celebrity Cruises is expected to post a weak quarter, and company executives had already warned that the recession continues to take a bite out of its revenues, despite its cost-cutting efforts and aggressive marketing of cruise cabins.

 

Update On 'Wave Season'

 

Management is also expected to give update on the "wave season," the winter period when most Americans make their cruise reservations for the year. While bookings are expected to rise, so are deals. As a result, profits could take a hit, even as traffic figures hold up.

 

While analysts still consider Royal Caribbean to be one of the strongest players in the cruise market, there are concerns that it has too many cruise cabins to fill in a market where demand has gone soft, and it continues to add more. Observers fear all that capacity will force the cruise line to keep discounting to fill cabins and squeeze its profits.

 

http://www.dailyfinance.com/story/company-news/earnings-preview-more-rough-seas-expected-for-royal-caribbean/19332171/?icid=main|main|dl1|link4|http%3A%2F%2Fwww.dailyfinance.com%2Fstory%2Fcompany-news%2Fearnings-preview-more-rough-seas-expected-for-royal-caribbean%2F19332171%2F