Record quarterly earnings for Carnival

[jimbo5544]

Just saw this.  Amazing amount of deposits, all time High, in many respects.

 

https://www.seatrade-cruise.com/finance-legal-regulatory/carnival-beats-q2-forecasts-raises-full-year-guidance-rosy-2025

[BlerkOne]

I like that cabin prices are up. Perhaps that indicates a decline in free cabins being given away.

[jsglow]

Alive and well.

[staceyglow]

16 minutes ago, BlerkOne said:

I like that cabin prices are up. Perhaps that indicates a decline in free cabins being given away.

 

Very few cabins have ever been given away as completely "free".

 

  Most, if not substantially all "free" cabins are casino-related, and the casino business is a separate arm of Carnival Corporation, If Carnival Corp does its accounting the way that most multi-company corporations do,  the casino company "pays" the individual cruise line for the cabins they comp to gamblers.  And if fares are going up, each individual cruise line is going to charge the casino company more for those "free" cabins.  Why wouldn't they?  If they can get $3000 from a paying customer for that balcony cabin, they aren't going sell it to the casino for substantially less.

 

Now, if the casino balks at paying a higher price because they don't think they will make it up on gaming revenue, that might indeed mean that there are fewer "free" cabins.  But especially in time of raising fares, the individual cruise line is going to take full advantage of the higher demand one way or another.

[BlerkOne]

4 minutes ago, staceyglow said:

 

Very few cabins have ever been given away as completely "free".

 

  Most, if not substantially all "free" cabins are casino-related, and the casino business is a separate arm of Carnival Corporation, If Carnival Corp does its accounting the way that most multi-company corporations do,  the casino company "pays" the individual cruise line for the cabins they comp to gamblers.  And if fares are going up, each individual cruise line is going to charge the casino company more for those "free" cabins.  Why wouldn't they?  If they can get $3000 from a paying customer for that balcony cabin, they aren't going sell it to the casino for substantially less.

 

Now, if the casino balks at paying a higher price because they don't think they will make it up on gaming revenue, that might indeed mean that there are fewer "free" cabins.  But especially in time of raising fares, the individual cruise line is going to take full advantage of the higher demand one way or another.

I bet the casino pays far less than the price available to an individual. And bet there are more no shows.

[jerseyjjs]

44 minutes ago, BlerkOne said:

I bet the casino pays far less than the price available to an individual. And bet there are more no shows.

 

 

With the wide array of casino offers (we get plenty year round) and record quarterly earnings, you'd think one would tie the two together.

[jimbo5544]

40 minutes ago, jerseyjjs said:

 

 

With the wide array of casino offers (we get plenty year round) and record quarterly earnings, you'd think one would tie the two together.

Everything is tied together.  Is casino offers the number one reason Carnival is doing well....?  I doubt it.  Demand for vacationing and cruising is off the charts good, the best it has ever been.  

[BlerkOne]

39 minutes ago, jerseyjjs said:

 

 

With the wide array of casino offers (we get plenty year round) and record quarterly earnings, you'd think one would tie the two together.

No, I wouldn't. Carnival's bread and butter are novice cruisers paying more and spending more. Carnival isn't ( for example) building Celebration Key to attract gamblers.

[staceyglow]

2 hours ago, BlerkOne said:

I bet the casino pays far less than the price available to an individual. And bet there are more no shows.

They probably get some sort of volume discount, but they aren't going to sell a cabin for to the casino for $1000 when a regular customer is willing to pay a multiple of that.

 

And who is to say that the cruise line doesn't make the casino pay for no-shows, just like they do for regular customers?

[ohioNCLcruiser]

Holland America invoices usually show you how much the casino department is paying. Often when I book with a phone rep they warn that the initial invoice will show a remaining balance but that goes away once the casino department pays it. The cruise line is not giving away cabins for nothing like some people on this board like to assume over and over. The casino gets a discount but its not a very heavy one. My employee and friends and family rates were a larger discount.

 

Some journey cruises can have fantastic casino offers for people, but most casino offers are for inside or limited ocean view cabins now and doesn't include the tax. Plenty of people are using their casino offers on sailings that probably cost around $200 a person before tax for an inside room. 

 

The company wants both new, full fare passengers and casino passengers. They both bring great value to the company.

Edited June 25 by ohioNCLcruiser

[BlerkOne]

39 minutes ago, staceyglow said:

They probably get some sort of volume discount, but they aren't going to sell a cabin for to the casino for $1000 when a regular customer is willing to pay a multiple of that.

 

Now we have entered SWAG territory. Carnival likely has some idea of how many cabins they will sell for a given cruise. Carnival knows if you set the price low enough, people will cruise. Casino offers are useful for filling ships that might not sail full.

 

Casino offers aren't going away, but may have already decline in the number of available cabins on a cruise, and some have reported a decline in the OBC and/or freeplay. The competition for those offers has certainly increased.

 

39 minutes ago, staceyglow said:

And who is to say that the cruise line doesn't make the casino pay for no-shows, just like they do for regular customers?

That Carnival has changed the wording of the offers to allow them to charge for no-shows strongly suggests they didn't use to penalize no-shows more than the standard cancellation fees.

[mz-s]

43 minutes ago, ohioNCLcruiser said:

Holland America invoices usually show you how much the casino department is paying. Often when I book with a phone rep they warn that the initial invoice will show a remaining balance but that goes away once the casino department pays it. The cruise line is not giving away cabins for nothing like some people on this board like to assume over and over. The casino gets a discount but its not a very heavy one. My employee and friends and family rates were a larger discount.

 

Some journey cruises can have fantastic casino offers for people, but most casino offers are for inside or limited ocean view cabins now and doesn't include the tax. Plenty of people are using their casino offers on sailings that probably cost around $200 a person before tax for an inside room. 

 

The company wants both new, full fare passengers and casino passengers. They both bring great value to the company.

 

They know enough to know the Casino is paying for the rooms at a rate that Carnival negotiates. They're arguing in bad faith with strawman argumentation. Move on.

[BlerkOne]

51 minutes ago, ohioNCLcruiser said:

Holland America invoices usually show you how much the casino department is paying. Often when I book with a phone rep they warn that the initial invoice will show a remaining balance but that goes away once the casino department pays it. The cruise line is not giving away cabins for nothing like some people on this board like to assume over and over. The casino gets a discount but its not a very heavy one. My employee and friends and family rates were a larger discount.

 

Some journey cruises can have fantastic casino offers for people, but most casino offers are for inside or limited ocean view cabins now and doesn't include the tax. Plenty of people are using their casino offers on sailings that probably cost around $200 a person before tax for an inside room. 

 

The company wants both new, full fare passengers and casino passengers. They both bring great value to the company.

A car dealer will show you the invoice, but everyone knows, or should know, that isn't what the dealer actually pays.

[Colorado Beach Bum]

4 hours ago, staceyglow said:

 

  Most, if not substantially all "free" cabins are casino-related, and the casino business is a separate arm of Carnival Corporation, If Carnival Corp does its accounting the way that most multi-company corporations do,  the casino company "pays" the individual cruise line for the cabins they comp to gamblers.  And if fares are going up, each individual cruise line is going to charge the casino company more for those "free" cabins.  Why wouldn't they?  If they can get $3000 from a paying customer for that balcony cabin, they aren't going sell it to the casino for substantially less.

I’m no GAAP expert but I did work in corporate finance, not accounting.  At the corporate consolidated entity I don’t think they can report comped casino rooms as revenue even if it is a separate entity.  Didn’t Enron do some creative accounting like that?

[staceyglow]

16 minutes ago, Colorado Beach Bum said:

I’m no GAAP expert but I did work in corporate finance, not accounting.  At the corporate consolidated entity I don’t think they can report comped casino rooms as revenue even if it is a separate entity.  Didn’t Enron do some creative accounting like that?

Yes, that revenue would not be reported at the consolidated level - but my point is that there are really no "free" rooms to begin with.  Ships sail full, and someone is paying for all of those rooms, whether it is the passenger or the casino.

 

 

Edited June 25 by staceyglow

[Colorado Beach Bum]

11 minutes ago, staceyglow said:

Yes, that revenue would not be reported at the consolidated level - but my point is that there are really no "free" rooms to begin with.  Ships sail full, and someone is paying for all of those rooms, whether it is the passenger or the casino.

 

 

But for GAAP reported earnings as discussed in OP’s first post those revenue numbers are not from these paid for by casino rooms.  Maybe revenues from casino gambling but not “paid” rooms. 

[tidecat]

49 minutes ago, Colorado Beach Bum said:

I’m no GAAP expert but I did work in corporate finance, not accounting.  At the corporate consolidated entity I don’t think they can report comped casino rooms as revenue even if it is a separate entity.

This would be an example of an intercompany item. It may be treated as revenue for the cruise line, but it is an expense (cost of sales) for the casino department. Those would get eliminated at the corporate level as they offset each other.

[Elaine5715]

6 hours ago, staceyglow said:

 

Very few cabins have ever been given away as completely "free".

 

  Most, if not substantially all "free" cabins are casino-related, and the casino business is a separate arm of Carnival Corporation, If Carnival Corp does its accounting the way that most multi-company corporations do,  the casino company "pays" the individual cruise line for the cabins they comp to gamblers.  And if fares are going up, each individual cruise line is going to charge the casino company more for those "free" cabins.  Why wouldn't they?  If they can get $3000 from a paying customer for that balcony cabin, they aren't going sell it to the casino for substantially less.

 

Now, if the casino balks at paying a higher price because they don't think they will make it up on gaming revenue, that might indeed mean that there are fewer "free" cabins.  But especially in time of raising fares, the individual cruise line is going to take full advantage of the higher demand one way or another.

 

6 hours ago, BlerkOne said:

I bet the casino pays far less than the price available to an individual. And bet there are more no shows.

Correct, the casino buys the staterooms, drink packages and other comps given to gamblers.  Gamblers, being gamblers will raise their play to get their "free" rooms plus bragging rights

[Elaine5715]

4 hours ago, ohioNCLcruiser said:

Holland America invoices usually show you how much the casino department is paying. Often when I book with a phone rep they warn that the initial invoice will show a remaining balance but that goes away once the casino department pays it. The cruise line is not giving away cabins for nothing like some people on this board like to assume over and over. The casino gets a discount but its not a very heavy one. My employee and friends and family rates were a larger discount.

 

Some journey cruises can have fantastic casino offers for people, but most casino offers are for inside or limited ocean view cabins now and doesn't include the tax. Plenty of people are using their casino offers on sailings that probably cost around $200 a person before tax for an inside room. 

 

The company wants both new, full fare passengers and casino passengers. They both bring great value to the company.

I have seven cruises booked, all balconies, for the $200 fare/$200 OBC.  Could have booked journeys for the same.  

[Elaine5715]

7 hours ago, jimbo5544 said:

Just saw this.  Amazing amount of deposits, all time High, in many respects.

 

https://www.seatrade-cruise.com/finance-legal-regulatory/carnival-beats-q2-forecasts-raises-full-year-guidance-rosy-2025

I helped!!

[jimbo5544]

1 hour ago, Elaine5715 said:

I helped!!

It all helps, I am sure they thank you