RCL Q1 profits fall 40% over last year

[bajathree]

That's a BIG hit:eek::eek::eek:....no doubt big thanks to the Concordia effect.

 

http://www.reuters.com/article/2012/04/20/royalcaribbean-idUSL2E8FJD420120420?type=companyNews&feedType=RSS&feedName=companyNews&rpc=43

[seaofwonder]

Expect to see deep discounts on Europe....notice how they said their Europe bookings are still down.

[Cruising89143]

It did have some effect.

 

http://www.cruise-community.com/News/News-Headlines/Royal-Caribbean-beats-Q1-forecast-Fain-says-Concordia-impact-waning.html

 

But Caribbean is doing well.

 

http://www.cruise-community.com/News/News-Headlines/Goldstein-expects-Caribbean-yields-to-top-2008-levels.html

[RoyalDiamond]

I'm sure most people had the 1st quarter cruises booked well before the Concordia accident. It's more likely due to fuel costs.....just like the airline industry, very suseptible to fuel prices!

[negc]

That's a BIG hit:eek::eek::eek:....no doubt big thanks to the Concordia effect.

 

http://www.reuters.com/article/2012/04/20/royalcaribbean-idUSL2E8FJD420120420?type=companyNews&feedType=RSS&feedName=companyNews&rpc=43

 

If RCI's profit decline is primarily due to the "Concordia effect", what must CCL be experiencing? I think I would wait for more time to pass and more figures to be gathered before ascribing any decline to one specific source. I suspect that the spike in fuel prices may have had as big, if not bigger effect, especially since a recent article in a travel trade magazine mentioned that resorts and cruiselines are eating those fuel price increases instead of following the airlines' lead in adding fuel surcharges.

[PLEIKU68]

That's a BIG hit:eek::eek::eek:....no doubt big thanks to the Concordia effect.

 

http://www.reuters.com/article/2012/04/20/royalcaribbean-idUSL2E8FJD420120420?type=companyNews&feedType=RSS&feedName=companyNews&rpc=43

 

And your point is ?? The cruise lines are down, oil is up , crashes and fires are up. Customer service is DOWN. I really think the smart thing to do is start buying the stock in small increments. I know I will be bashed for that comment but I bought in the $5 range sold in the $48 range and this will happen again but not at that $ range.:eek::eek:

[will773]

Seems like they should be rethinking their heavy reliance on Europe. I see changes coming in the future.

[Familygoboston]

I'm sure most people had the 1st quarter cruises booked well before the Concordia accident. It's more likely due to fuel costs.....just like the airline industry, very suseptible to fuel prices!

 

I dont have a dog in this fight; well, not as single stock anyway, im sure its in a fund in the portfolio somewhere ( unless the managers were smart enough to dump it before last Q;)) but I agree that the oil prices have been " chilling" to the cruise industry in general. Flights everywhere are very high and their own fuel expenses are up as well as prices to ship food and liquor to their ships due to increased fuel cost. Add to that the negative news of Concoridia possibly surpressing new bookings and double ouch!

[The Big Booper]

Hotels are glued in place, ships are not. Look at the big discounts =X= is offering on their European sailings, BOGO 50%.

[sail2sea]

If Europe is down and Caribbean is doing well, I hope it means Royal is bringing more ships back to this side of the pond.

[pspercy]

Seems like they should be rethinking their heavy reliance on Europe. I see changes coming in the future.

 

 

This may well be one reason for the revised deployment timetables we've been seeing for 2013/14.

Ship placements being seriously reconsidered?

 

I don't envy those making the decisions.

[Iluvcruising2]

Ouch! That's bad.

 

We have noticed that the prices for European sailings have really fallen by a lot. Unfortunately we can't take advantage of the good prices now.

[Iluvcruising2]

Seems like they should be rethinking their heavy reliance on Europe. I see changes coming in the future.

 

Speaking as a person living in Singapore, I do hope more ships come to Asia!!

[Topo Gigio]

This may well be one reason for the revised deployment timetables we've been seeing for 2013/14.

Ship placements being seriously reconsidered?

 

I don't envy those making the decisions.

 

I said this the other day. I'm almost positive that there was a very last minute change in their ship deployment for next year.

[RCcruisinfamily]

Just not as much in the past. I hope they figure out that cutting back on small chocolates, towel animals, staff to clean rooms, quality food in the MDR, and repairs to some of their older ships will not promote full cruises. I have taken a few RC cruises and a few on other lines. I do have my next 2 booked on RC and maybe will take one this summer last minutes, if the price drops to reasonable for an older ship in an inside cabin. They are still making tons! Millions! Make customer service better, make people feel happy about the little things. Don't make people say, why did I get chocolate last time and not this time? Why did they give me a robe last time and not this time? Why are they serving soda out of 2ltr bottles? How can that be price smart for them? Seriously they had broken soda lines for a long time. Fix it! Make people feel like they are special. I hear the people in the suites get this kind of service all the time. My daughter 9, said, "The boy told me he gets chocolates! He is in a suite." I still will sail RC. But I have seen service and maintenance go down. I am hoping they will fix it.

 

Kelly

[bajathree]

If RCI's profit decline is primarily due to the "Concordia effect", what must CCL be experiencing? I think I would wait for more time to pass and more figures to be gathered before ascribing any decline to one specific source. I suspect that the spike in fuel prices may have had as big, if not bigger effect, especially since a recent article in a travel trade magazine mentioned that resorts and cruiselines are eating those fuel price increases instead of following the airlines' lead in adding fuel surcharges.

 

Have you not read the article:confused:

 

"Royal Caribbean, which has faced slower business after the Costa Concordia accident of its larger competitor Carnival Corp & Plc in January, said overall booking volumes since February were down by a mid-single-digit percentage."

 

"The market is still highly volatile, highly uncertain, Chief Executive Richard Fain told analysts on a conference call."

 

"On Jan. 13, the Costa Concordia, a liner operated by the Costa Cruises unit of rival Carnival, hit a reef just off an Italian island and capsized, killing or hurting dozens. Last month, Carnival slashed its full year profit and sales forecast."