RSVP/PlanetOut Financial Situation - Travel Ins?

[LVMediaboy]

It will likely be a double whammy for planetout. Having purchased RSVP for 6.5m cash and with expected massive loss on QM, planetout will certainly be in a difficult situation. As I understand, charter operators like RSVP and Atlantis prepay to charter ships. With RSVP now double upgrading and offering free flights, I expect the May 9 news will be anything but positive.

My first 9 gay cruises were with RSVP and last 11 with Atlantis. BOth companies are really made up of their base of travelers. So whatever one calls the operator -- the cruisers will still cruise

[COMBOY]

I just finished listening to Planet Out's 1st quarter webcast and from what I heard things don't look too pretty financial for the company at this point. Although in my opinion I don't see the company going out of business the executives of Planet Out clearly stated that significant mistakes were made with the purchase of RSVP vacation. The Caribbean Princess went out with 92% occupancy with significant discounting. The QM2 charter has also significantly impacted their profit hard due to significant discounting as well a penalty Cunard will charge if they don't meet a certain occupancy level. They blame the lack lead time in marketing these charters with such large capacity. The bright note was that the Caribbean Princess received the highest customer satification of any RSVP cruise to date and the 2008 cruise on the Zuiderdam is selling a head of expectation. Only time will time. If you want more detailed financial information on Planet Out you can go to their investor section at the website as http://www.planetout.com

[Typhoon1]

I take issue with the 92% figure. There were only 2600 on board the CB and that was due to their two for one giveaway. That ship would have been half empty if not for the two for one.

 

It was not a marketing problem for both cruises. It was called stupidity on the part of former CEO Jeff Soukup. Both those ships were too large for the RSVP market. Soukup gave me the marketing line when we met him on board. I can't say I found a great deal of satisfaction with Princess. Holland America excels in every area Princess fails. That's why the Zuiderdam is selling well.

 

Let's hope things can improve with Soukup gone, and we can get back to the RSVP many of us were used to.

[ZIPPER]

I just finished listening to Planet Out's 1st quarter webcast and from what I heard things don't look too pretty financial for the company at this point. Although in my opinion I don't see the company going out of business the executives of Planet Out clearly stated that significant mistakes were made with the purchase of RSVP vacation. The Caribbean Princess went out with 92% occupancy with significant discounting. The QM2 charter has also significantly impacted their profit hard due to significant discounting as well a penalty Cunard will charge if they don't meet a certain occupancy level. They blame the lack lead time in marketing these charters with such large capacity. The bright note was that the Caribbean Princess received the highest customer satification of any RSVP cruise to date and the 2008 cruise on the Zuiderdam is selling a head of expectation. Only time will time. If you want more detailed financial information on Planet Out you can go to their investor section at the website as www.planetout.com

 

The PlanetOut earnings report was truly dreadful, keep in mind the full impact of the QM2 charter won't show up until the next earnings report. There's also clearly weakness in the gay charter market, check out Atlantis's web traffic in relation to the past three years:

 

http://www.alexa.com/data/details/traffic_details?q=&url=www.atlantisevents.com

 

and the RSVP traffic:

 

http://www.alexa.com/data/details/traffic_details?url=rsvpvacations.com

 

It will be interesting to see the action in the stock tomorrow, it will probably more sharply one way or the other. It could take off to the upside under the assumption that the worst news is already out, or it could plunge. I can't wait for 9:30 am.

[pjfunny1]

The PlanetOut earnings report was truly dreadful, keep in mind the full impact of the QM2 charter won't show up until the next earnings report. There's also clearly weakness in the gay charter market, check out Atlantis's web traffic in relation to the past three years:

 

http://www.alexa.com/data/details/traffic_details?q=&url=www.atlantisevents.com

 

and the RSVP traffic:

 

http://www.alexa.com/data/details/traffic_details?url=rsvpvacations.com

 

It will be interesting to see the action in the stock tomorrow, it will probably more sharply one way or the other. It could take off to the upside under the assumption that the worst news is already out, or it could plunge. I can't wait for 9:30 am.

 

As of this afternoon, PNO stock is down to $1.79 per share.....YIKES!

 

Paul J.

[ZIPPER]

Planet Out is short on cash and has had lousy management, it also has an incredible concept and great brands. Most importantly it has now hired Allen & Company who are major turn around artists in the entertainment and technology fields. If they can bring in new managment and the required $15 million, which shouldn't be hard, this could be the ultimate buying opportunity. Needless to say, this morning I became an LGBT stockholder.

 

Disclaimer: I'm just an average guy, not a stock pro, so anyone considering this company should do their own research and shouldn't come crying to me if they lose their money on any investments.

[MattInFLL]

Wow, my joke about Atlantis was taken so seriously! Anyway, we all just have to sit back and see what happens. The summer cruises are going, even the QM2 - those are paid for... let's see what happens as the year goes on. It would be a shame for RSVP to go out of biz. I think the brand could be sold - there's an awful lot of brand awareness built up in 20+ years, and that has real value. But they could also just turn it around themselves by concentrating on what works for that brand - smaller ships.

[RMS Olympic]

RSVP is a name, a service if you will. They charter a ship.....but once the ship departs the pier it comes down to people, activities orchestrated by people and customer service controlled by people. With all uncertainty as to the future of the company, will the experienced staff remain? If not, the people aspect of the business may suffer. Where you find people with experience to run the cruises.....and keep them is my question. This Rome trip will be very interesting.....I also wonder what percentage of customers are even aware of the financial situation of the parent company. If out of fear cancellations start for next year and bookings fail, turn around will really become a lengthy process costing bigger bucks.

I hope for the best, but admit I will look for a potential replacement cruise for Feb....

[Darrell6t]

From today's Washington Blade:

There will be no shortage of partying aboard the Queen Mary 2 next week when it leaves New York.

 

Passengers aboard the trans-Atlantic gay cruise can sip Champagne at the Royal Ascot Ball, mingle with leather-clad men on the aft deck and see Margaret Cho perform in the ship’s Royal Court Theatre.

 

But when the revelry hosted by RSVP Productions ends, company officials must face a sobering reality.

 

PlanetOut, the parent company of RSVP and many other gay businesses, lost $6.9 million in the fiscal quarter that ended March 31.

 

A federal filing released earlier this month showed falling revenues and rising costs have destabilized the corporation that also owns Gay.com, plus the Advocate and Out magazines.

http://207.154.16.209/2007/5-25/news/national/10635.cfm