Cruise Line Onboard Revenues Off the Charts

[BlerkOne]

https://www.cruiseindustrynews.com/cruise-news/26175-cruise-line-onboard-revenues-are-off-the-charts.html

 

Cruise lines are seeing record onboard revenues on a per passenger basis thanks to pent up demand, bundling strategies and consumers with fresh wallets.

 

“Our onboard revenues for guests are off the charts, and our Net Promoter Scores have been exceptionally strong,” said Arnold Donald, CEO at Carnival Corporation, on the company’s third quarter earnings call.

[Saint Greg]

I wonder if that is before or after everyone spends their $600 OBC.

[bigrednole]

I can imagine because people have not vacationed much in 2 years. What he didn't say is that the price tag of everything has gone up, they are charging for things that use to be free, and just getting that little bit more money out of everyone for every purchase. It would be nice to see that correlation. As a stockholder, this is good.

[Can'tWait2SetSail]

What are they charging now for that used to be free?

[canes20]

Are they putting the free OBC money as a spend before they are taking the "coupon" off before the grand total?

[bigrednole]

18 minutes ago, Can'tWait2SetSail said:

What are they charging now for that used to be free?

Popcorn is one. Tag an extra $1 on everything and no one really notices. It all adds up over the course of 12+ cruises over a fiscal quarter.

[BlerkOne]

1 hour ago, bigrednole said:

Popcorn is one. Tag an extra $1 on everything and no one really notices. It all adds up over the course of 12+ cruises over a fiscal quarter.

They are also almost giving away many cabins, drink packages, etc.

 

I've been on 3 cruises this year and have yet to buy popcorn. I have gotten free drinks (above the normal free drinks) on two of the three cruises. The steakhouse was the normal price. I can't think of anything else that now has a charge that didn't before.

[Don Kehote]

3 hours ago, bigrednole said:

Popcorn is one. Tag an extra $1 on everything and no one really notices.

Oh my goodness, the kids won't be going to college now.

[Pjnc]

Hi

 

Revenue might be off the charts but they are denying stockholder credit.  Leaves a bad taste in my mouth.  Possibly my last Carnival cruise coming up in eleven days.

 

pat

murrells inlet, sc

[Earthworm Jim]

1 hour ago, BlerkOne said:

They are also almost giving away many cabins, drink packages, etc.

 

Which is presumably part of the reason onboard spending per passenger is up, because they were giving most of those super deals to gamblers. One would guess the extra gambling revenue more than makes up for the cheap cabins, or they wouldn't keep offering them cheap cabins. But the decreased revenue per passenger on fares at least partially counterbalances the increased revenue per passenger spent on board. And, though onboard spending per passenger is up, the number of passengers is down because of reduced capacity and fewer ships in service.

 

So, while the increased spending per passenger is good news for them, it's not the entire story.  

[firefly333]

46 minutes ago, Pjnc said:

Hi

 

Revenue might be off the charts but they are denying stockholder credit.  Leaves a bad taste in my mouth.  Possibly my last Carnival cruise coming up in eleven days.

 

pat

murrells inlet, sc

You must have gotten one of those promo rates. Pay full price similar to pre covid and I got my obc from stock lol. In fact they transferred my stockholders 1 year forward when I got cancelled. 

[firefly333]

46 minutes ago, Pjnc said:

Hi

 

Revenue might be off the charts but they are denying stockholder credit.  Leaves a bad taste in my mouth.  Possibly my last Carnival cruise coming up in eleven days.

 

pat

murrells inlet, sc

You must have gotten one of those promo rates. Pay full price similar to pre covid and I got my obc from stock lol. In fact they transferred my stockholders 1 year forward when I got cancelled. 

[Pjnc]

24 minutes ago, firefly333 said:

You must have gotten one of those promo rates. Pay full price similar to pre covid and I got my obc from stock lol. In fact they transferred my stockholders 1 year forward when I got cancelled. 

Hi

 

Nope      Just a regular sale     

 

so I guess you have to pay the brochure rate to get the OBC now,

 

pat 

murrells inlet, sc

[jimbo5544]

5 hours ago, Saint Greg said:

I wonder if that is before or after everyone spends their $600 OBC.

Fair point, but they will def take it 

[jimbo5544]

1 hour ago, Pjnc said:

Hi

 

Revenue might be off the charts but they are denying stockholder credit.  Leaves a bad taste in my mouth.  Possibly my last Carnival cruise coming up in eleven days.

 

pat

murrells inlet, sc

So….they offer outstanding rates (which are def enticements to get people back on the seas and untenable) and you are unhappy because on top of that you did not get another hundred buck obc?   If that is what it takes to make you leave a company that basically almost bed to death then let me be the first to say…..buh bye

[Saint Greg]

7 minutes ago, jimbo5544 said:

Fair point, but they will def take it 

In my case it didn’t really make a difference. Yes I spent over 1k onboard panorama. But I would’ve spent that anyway. I just would’ve bought, cheers, internet, etc before I boarded if I didn’t have the OBC.

[jimbo5544]

2 minutes ago, Saint Greg said:

In my case it didn’t really make a difference. Yes I spent over 1k onboard panorama. But I would’ve spent that anyway. I just would’ve bought, cheers, internet, etc before I boarded if I didn’t have the OBC.

Nor our case(s), but your point is still a good one.  Would love to see the data on the OBC and affect on the bottom line.  Based on what I see here, it looks like they made a good choice.  Next up for us is Pride Nov 30.

[BlerkOne]

9 minutes ago, Saint Greg said:

In my case it didn’t really make a difference. Yes I spent over 1k onboard panorama. But I would’ve spent that anyway. I just would’ve bought, cheers, internet, etc before I boarded if I didn’t have the OBC.

If you had purchased before the cruise, Cheers and Internet would have been discounted. Using OBC saved Carnival the discount.

[DAllenTCY]

I received my stock holder credit last week for my January cruise and I hope to receive the benefit in May.

 

David

[Saint Greg]

27 minutes ago, BlerkOne said:

If you had purchased before the cruise, Cheers and Internet would have been discounted. Using OBC saved Carnival the discount.

Yeah they can have the imaginary $35 if it saves me 500 real dollars.

 

 

Edited November 10, 2021 by Saint Greg

[jimbo5544]

34 minutes ago, Saint Greg said:

Yeah they can have the imaginary $35 if it saves me 500 real dollars.

 

 

My bet is, if they can get you on a funnel ship, they consider it a win win….but I am not a gambling man.

[BlerkOne]

43 minutes ago, Saint Greg said:

Yeah they can have the imaginary $35 if it saves me 500 real dollars.

 

 

It is a win win. You saved 500 of your dollars and Carnival's cost was pennies on the dollar. You can add another win because many people with Cheers tip extra, so the bar tenders are happy, too.

[K_e_short]

I'm not sure why this is news.

 

Even before Covid, cruiselines pushed for on board purchases.

 

I remember being told that most cruisers spend the same amount on board as they do the price of their cabin.

 

And yes the psychological game that since you paid less for your cruise you can pay more for extras.

 

Now what I find to be interesting is so many people whining about having to pay for antigen testing...

 

 

[Illbcruzn4life]

10 hours ago, BlerkOne said:

https://www.cruiseindustrynews.com/cruise-news/26175-cruise-line-onboard-revenues-are-off-the-charts.html

 

Cruise lines are seeing record onboard revenues on a per passenger basis thanks to pent up demand, bundling strategies and consumers with fresh wallets.

 

“Our onboard revenues for guests are off the charts, and our Net Promoter Scores have been exceptionally strong,” said Arnold Donald, CEO at Carnival Corporation, on the company’s third quarter earnings call.

pent up demand? everybody is just usin all their OBC.

[bigrednole]

8 hours ago, Don Kehote said:

Oh my goodness, the kids won't be going to college now.

Its not about that. It is about making a statement that onboard spending has skyrocketed. You need to define how that is the case. 3,000 pax per sailing, everything up $1, assume everyone buys 10 things, that's $30,000 in extra revenue. Multiply that by 100 sailings in a quarter, that is $3M more in spending. I am sure it is at least 10x larger than that, but it paints the picture.