major cutbacks = $$$$ for RCL

[dirtymoney]

Oct 23 (Reuters) - Royal Caribbean Cruises Ltd(RCL), the world's second-largest cruise operator, reported a 34 percent jump in quarterly profit as bookings rose for its Asia and Europe cruises.

 

The company's net income rose to $490.2 million, or $2.19 per share, in the third quarter ended Sept. 30 from $365.7 million, or $1.65 per share, a year earlier.

 

Revenue rose 3.3 percent to $2.39 billion.

 

Guess their major cutbacks has enabled them to really $core big earnings.

[need2bespoiled]

Reduced fuel prices can't hurt...

 

Happy sailing,

Jenna

[Phxazzcruisers]

And the bookings in Asia and Europe. Asia is becoming very profitable for them. It is not ll from major cutbacks........

[rolfecms]

The 123Go campaign seems to be huge success for X in bringing in both more bookings and revenue. The beverage packages seem to very popular but it appears that the cruise line may be profiting more from them than their guests.

[cle-guy]

As a mater of fact on board EXPENSES (even fuel costs) are actually higher than same period last year. Most of the growth has come at the top line, from revenue generation. Likely as others have said, from the Asian markets that are growing dramatically.

 

Cost per Available Passenger Cruise Day (APCD) are a few cents HIGHER this quarter versus same quarter 2013. Again, proof that it isn't cost cutting driving the profits.

 

Oddly, to me anyway, the revenue growth is at the cabin fare level, onboard revenue is actually down a bit. But I am not sure how they factor in included beverage packages, that is do they net this out of cabin revenue, (the increased fare to cover it) or is it left there, therefore, of course less on board spend from drinks, since that spend is captured in Cabin fare....?

 

http://finance.yahoo.com/news/royal-caribbean-reports-third-quarter-123300931.html

 

It's interesting to read in multiple places that they are cutting back on 4th quarter forecasts. I have been watching a number of caribbean sailings in the fall and winter, and notice that many are at half to 2/3 capacity only. My Sillie sailing November 30 is only 51% sold out so far. The Caribbean is a tough market, Asia and Europe less competition leads to higher revenues and fares, and net earnings. This accounts for the good 3rd Quarter, no X ships in Caribbean, and very few of the RCI ships there. But they are on their way back....!

 

As a ahareholder, it's good news to me! :D

Edited October 23, 2014 by cle-guy

[boogs]

We have an Asia cruise on Millennium coming up in February. We booked 16 months in advance. Prices have never gone down, only higher as time went by. Today, still over three months out, the cruise is virtually sold out, and has been for months. As is common in the cruise industry, some people cancel as final payment approaches, making new staterooms available.

 

As new ones become available, the price has been increasing. We are paying $2,499 pp for our Concierge stateroom. The latest price I have seen for our category is now $4,399 pp, almost $2,000 pp more! This is the first cruise we have ever taken that hasn't seen a price drop before final payment.

 

The Asia market has been booming and cruise lines can demand top dollar for cruises in this market. Top dollar equates to higher profits. I suspect that this is a major reason for the high profits being reported.

Edited October 23, 2014 by boogs

[curtdesilets]

Just got this from my weekly e-mail from Cruise Industry News....

 

Reporting its Q3 results today, Royal Caribbean Cruises posted net income of $490.3 million, or $2.19 per share, on revenues of $2.4 billion, compared to net income of $356.7 million, or $1.65 per share, on revenues of $2.3 billion for the same period last year.

 

While the earnings are robust, the year-over-year increase is driven by cost reductions, while net ticket income and onboard revenue per passenger day are down from last year as is the average ticket price passengers paid.

 

Royal Caribbean posted net ticket revenue per passenger day of $144.72 this year, compared to $148.15 last year, and net onboard revenue of $43.67 per passenger day this year, compared to $44.91 last year.

 

Gross ticket revenue per passenger day was $186.05 this year, compared to $179.74 last year, and gross onboard spending per passenger day was $62.69 this year, compared to $68.77 last year.

 

Passengers paid an average of $1,348 for their cruise ticket during this year’s Q3 compared to $1,373 last year.

 

Royal Caribbean full-year earnings guidance is for $3.45 per share (2014) and for 2015, $4.55 per share.

[JFontaine]

I am a stockholder, a frequent cruiser (suites), and I get on board with money to spend. But I don't spend it, because nothing interests me. So here are some tips if anyone is listening: improve the quality of the food in the steakhouse (I don't even bother to go now because I think it is a ripoff); improve the value of the spa services (they shouldn't cost more for less than what I would get in NYC); lower the prices of the photos (many of us would buy more - and all you are doing is tossing them or recycling); improve the stock of Apple products (I need a new Ipad, I would save some tax from buying it on board, but I know that there will be none); improve the offerings in the stores - everything from Tshirts, hats and beach bags to bathing suits and other clothes (on rainy days I would love to shop); stock your sundries shop with books and more snacks - I would love some good snacks to go with the beer that I am buying from you. Get rid of the down-market stuff ($10 watches, cheap chains by the yard) - use that space to sell things that people want and will make you a profit. Just some suggestions - the point is, if you improve it, I will buy it - and I can't be alone on this.

[hulamoon]

Yet even though the Caribbean sailings were weak, they sure took awhile to start dropping. I liked it better a couple of years ago when the rates were less dramatic in pricing and lowering. Why teach customers it pays to wait?

 

I often wonder how many passengers are lost to other lines because of sticker shock, where in the end the prices may be equitable to other lines. There were several months in late summer where X was nearly double other lines for same dates.

 

I am sure the factors of war and disease are playing a part in fourth quarter expectations. The fear factor always effects vacation dollars.

 

Although cut backs may not be what drives the bottom line, it assists it.

 

Don't cruise lines buy future fuel months out? Hopefully someone is stocking up.

[ISABELLA]

I am a stockholder, a frequent cruiser (suites), and I get on board with money to spend. But I don't spend it, because nothing interests me. So here are some tips if anyone is listening: improve the quality of the food in the steakhouse (I don't even bother to go now because I think it is a ripoff); improve the value of the spa services (they shouldn't cost more for less than what I would get in NYC); lower the prices of the photos (many of us would buy more - and all you are doing is tossing them or recycling); improve the stock of Apple products (I need a new Ipad, I would save some tax from buying it on board, but I know that there will be none); improve the offerings in the stores - everything from Tshirts, hats and beach bags to bathing suits and other clothes (on rainy days I would love to shop); stock your sundries shop with books and more snacks - I would love some good snacks to go with the beer that I am buying from you. Get rid of the down-market stuff ($10 watches, cheap chains by the yard) - use that space to sell things that people want and will make you a profit. Just some suggestions - the point is, if you improve it, I will buy it - and I can't be alone on this.

I am with you...............

[cle-guy]

I am a stockholder, a frequent cruiser (suites), and I get on board with money to spend. But I don't spend it, because nothing interests me. So here are some tips if anyone is listening: improve the quality of the food in the steakhouse (I don't even bother to go now because I think it is a ripoff); improve the value of the spa services (they shouldn't cost more for less than what I would get in NYC); lower the prices of the photos (many of us would buy more - and all you are doing is tossing them or recycling); improve the stock of Apple products (I need a new Ipad, I would save some tax from buying it on board, but I know that there will be none); improve the offerings in the stores - everything from Tshirts, hats and beach bags to bathing suits and other clothes (on rainy days I would love to shop); stock your sundries shop with books and more snacks - I would love some good snacks to go with the beer that I am buying from you. Get rid of the down-market stuff ($10 watches, cheap chains by the yard) - use that space to sell things that people want and will make you a profit. Just some suggestions - the point is, if you improve it, I will buy it - and I can't be alone on this.

 

As an often bashed Celebrity cheerleader, even I 100% support these sentiments. I feel the recent rise in specialty restaurant prices has officially made me lose the value for money for them. And based on the empty seats I saw in Murano and Qsine on my last bermuda sailing (even final night on the ship) seems many others have as well. Qsine I went with a friend who got a casino comp, and Murano, again, went because friends wanted to go so I did as well. But not for those circumstances, I'd have not gone to either.

 

I'd add shoelaces to the stocked items. Got on my last one to get dressed for dinner to find my little beloved doggie had eaten mine. :D

 

Also, I wish there were a range of decent clothes (i.e. if I forgot something a home or was a newbie who didn't realize there was formal nights) I'd like to be able to buy a decent shirt or slacks (not cheap logo golf shirts and resort wear), and a belt (forgot one once ...) too. Good ways to use up OBC or casino winnings.

[cle-guy]

Don't cruise lines buy future fuel months out? Hopefully someone is stocking up.

 

I don't really understand how hedging and future fuel purchases works, but Celebrity shows the cost of fuel in its financials based on the current "pump price" as they note in their disclosures, not based on the actual cash out-of-pocket, so the hedging policies show up on the balance sheet and cash flows, not in the Profit & Loss statements.

[Gracie115]

I am a stockholder, a frequent cruiser (suites), and I get on board with money to spend. But I don't spend it, because nothing interests me. So here are some tips if anyone is listening: improve the quality of the food in the steakhouse (I don't even bother to go now because I think it is a ripoff); improve the value of the spa services (they shouldn't cost more for less than what I would get in NYC); lower the prices of the photos (many of us would buy more - and all you are doing is tossing them or recycling); improve the stock of Apple products (I need a new Ipad, I would save some tax from buying it on board, but I know that there will be none); improve the offerings in the stores - everything from Tshirts, hats and beach bags to bathing suits and other clothes (on rainy days I would love to shop); stock your sundries shop with books and more snacks - I would love some good snacks to go with the beer that I am buying from you. Get rid of the down-market stuff ($10 watches, cheap chains by the yard) - use that space to sell things that people want and will make you a profit. Just some suggestions - the point is, if you improve it, I will buy it - and I can't be alone on this.

 

Agree too.....Celebrity Cruises... are you reading this?????

[Celebrity Cruises]

Agree too.....Celebrity Cruises... are you reading this?????

 

Hello there, yes we are, and we will be sure to pass on this suggestion. Thanks!

[Gracie115]

Hello there, yes we are, and we will be sure to pass on this suggestion. Thanks!

 

Thank you!! Hopefully at least some of them can be followed through on....I appreciate your listening! :)

[riandei]

Agree too.....Celebrity Cruises... are you reading this?????

 

agreed

[need2bespoiled]

Very hard to disagree or find fault in anything that is written here, except there is an Asian Sailing coming up (11/23 on Millie) with very good prices, they have dropped a bunch), though he sailing before and after have been strong. I think this cruise is the anomaly as the one before went up, up up and was almost sold out months in advance.

 

Most of the posters here are dedicated, loyal cruisers who often book cabins that X seems to be courting (suites, aqua, concierge) are posting here so please take note :)

 

Happy sailing,

Jenna

[Host Jazzbeau]

Celebrity is a small part of RCL, and all the figures you quote are about RCL as a whole. How does that constitute "Proof of Celebrity Cost Reductions"?

[cruiseerf]

I hope these growth numbers show Celebrity that perhaps a Solstice Class ship in Asia could work....There is the Solstice which does AU and NZ and the Hawii trip as it re positions to Alaska for the summer each year.

 

I just am no great lover of the M class ships and would love to cruise Japan and Korea etc. Just sayin.....

 

Safe sails to all!

[Ex-Airbalancer]

I am a stockholder, a frequent cruiser (suites), and I get on board with money to spend. But I don't spend it, because nothing interests me. So here are some tips if anyone is listening: improve the quality of the food in the steakhouse (I don't even bother to go now because I think it is a ripoff); improve the value of the spa services (they shouldn't cost more for less than what I would get in NYC); lower the prices of the photos (many of us would buy more - and all you are doing is tossing them or recycling); improve the stock of Apple products (I need a new Ipad, I would save some tax from buying it on board, but I know that there will be none); improve the offerings in the stores - everything from Tshirts, hats and beach bags to bathing suits and other clothes (on rainy days I would love to shop); stock your sundries shop with books and more snacks - I would love some good snacks to go with the beer that I am buying from you. Get rid of the down-market stuff ($10 watches, cheap chains by the yard) - use that space to sell things that peopyle want and will make you a profit. Just some suggestions - the point is, if you improve it, I will buy it - and I can't be alone on this.

They make a ton on the market down stuff, people were lined up an hour before the sale starts on sea days

Selling books would be a waste of space, they should sell ereaders instead

On our cruie they had ipad air, mini, and laptops for sell what more is there? they are not allowed to sell phones

I would see a out door coffee Cafe,

[wallie5446]

Oct 23 (Reuters) - Royal Caribbean Cruises Ltd(RCL), the world's second-largest cruise operator, reported a 34 percent jump in quarterly profit as bookings rose for its Asia and Europe cruises.

 

The company's net income rose to $490.2 million, or $2.19 per share, in the third quarter ended Sept. 30 from $365.7 million, or $1.65 per share, a year earlier.

 

Revenue rose 3.3 percent to $2.39 billion.

 

Guess their major cutbacks has enabled them to really $core big earnings.

 

Great for our IRA's and 401k! Plow the dividends back in and cruise some more.

[need2bespoiled]

They make a ton on the market down stuff, people were lined up an hour before the sale starts on sea days

Selling books would be a waste of space, they should sell ereaders instead

On our cruie they had ipad air, mini, and laptops for sell what more is there? they are not allowed to sell phones

I would see a out door coffee Cafe,

 

The usually don't have the newest iPad, or in sizes more than the minimum and almost never with broadband service. Pretty limited choices.

 

I agree' there are a lot who enjoy the "cheap" stuff, otherwise they wouldn't have it onboard for long.

 

Happy sailing,

Jenna

[Rob the Cruiser]

How much profit is acceptable? Profits go down, stock price goes down. Profits go down, cutbacks will continue until financial goals are met.

 

Or would you rather sail with a cruise line that is losing money?

[Topo Gigio]

I think that the Casino is a huge moneymaker in Asia!

Edited October 24, 2014 by Topo Gigio

[Gracie115]

They make a ton on the market down stuff, people were lined up an hour before the sale starts on sea days

,

 

yes I've seen this same thing on many ships.....but I don't understand it.....when I look it is almost always just really horrible quality stuff....that I would never buy on land at whatever price, so why think buying at sea is better....it's still bad quality and will either break/fade/shrink in record time....

 

but X and Royal and all the lines are making money on this stuff so they won't stop until the customers stop buying it....

 

my DH got taken in many years ago by the "Inch of Gold" sales table.....bought it, wore it and turned his neck green in days....yeah we knew it wasn't solid gold but it was just garbage....and I see they are STILL selling it...so others are falling for the same thing we did when we were newbies to the cruising world......

 

on the other hand you have the ridiculously expensive items that I would also NEVER buy on a ship...would sure like to have some in between quality items but guess that's not going to happen.

Edited October 25, 2014 by Gracie115