The Definitive Shareholder Benefit Thread - Read This First!

[VibeGuy]

We seem to answer the same questions on the OBC over and over and over, spawning endless threads. How about consolidating the information on this one? I've written a series of postings that will attempt to answer the most common questions about the CCL/CUK Shareholder Benefit, not only as described in the official CCL/CUK information, but also as experienced by actual cruisers.

 

I don't speak for Carnival Corporation or Carnival PLC, nor am I an investment advisor. I'm just a happy shareholder who has been through the process several times recently and sees a new OBC thread every other day.

 

Eric, AKA VibeGuy

[VibeGuy]

Where can I find the official Carnival Corporation / Carnival PLC Shareholder Benefit Policy?

 

The official Carnival Shareholder Benefit Information is here.

[VibeGuy]

In short, what is the benefit of owning Carnival shares when you sail on Princess?

 

Carnival provides qualified shareholders sailing with Princess with an On-Board Credit (OBC) of varying amounts in addition to the regular cash dividends paid to all shareholders. The amounts are subject to change, but as of July 1, 2009, they are as follows:

 

Six Days or Less: $50 / ₤25 / €40 / AUD 50

Seven to Thirteen Days: $100 / ₤50 / €75 / AUD 100

Fourteen Days or Longer: $250 / ₤125 / €200 / AUD 250

 

On Princess, the benefit is awarded in the onboard currency of the sailing, not the currency of the stockholder’s residence or the currency the cruise was paid in.

 

These benefits are subject to renewal by the boards of Carnival Corporation and Carnival PLC. The benefit currently extends to cruises booked by February 28, 2010 for sailings through July 31, 2010. You must request the benefit prior to sailing.

[VibeGuy]

What makes a qualified shareholding? How much does that much stock cost?

 

You must own at least 100 shares either of Carnival Corporation stock or Carnival PLC ADRs; these may be held as certificates or you can hold them in a brokerage account, IRA or self-directed 401(k). The cost of a block of 100 shares will be 100X the prices quoted at the links above, plus brokerage fees.

Edited July 7, 2009 by VibeGuy

[VibeGuy]

How do you go about actually getting the credit?

 

As of July 1, 2009, you provide your name, reservation number, ship and sailing date, along with proof of ownership of Carnival Corporation or Carnival plc shares (i.e., photocopy of shareholder proxy card, shares certificate, trade confirmation or a current brokerage or nominee statement) after final payment for the cruise is made, to:

 

PRINCESS CRUISES

Yield Management

24844 Avenue Rockefeller

Santa Clarita, CA 91355

Tel 800-872-6779 ext. 30305

Fax 661-753-0180

 

I have emailed the same information to the current Yield Management representative, Liza McDaniel at lmcdaniel@princesscruises.com with success.

[VibeGuy]

How do I know the credit has been applied to my booking?

 

Give the talented Yield Management representative a couple of business days to apply the credit; after that...

 

1. Login to My Princess
    
   
2. Under the Circle Savings Account heading on the middle of the left side of the page, click View Details
    
   
3. Scroll down to the Account Summary heading and click the Onboard Credits tab; you'll see the credits for each upcoming sailing, listed by a Credit ID#, referencing your booking number.
   

 

If you don't see your credits after five business days, contact Yield Management.

[love2bonboard]

In short, what is the benefit of owning Carnival shares when you sail on Princess?

 

Carnival provides qualified shareholders sailing with Princess with an On-Board Credit (OBC) of varying amounts in addition to the regular cash dividends paid to all shareholders. The amounts are subject to change, but as of July 1, 2009, they are as follows:

 

 

Great summary, however, they stopped paying dividends to the shareholders.

[VibeGuy]

How will I know that the credit has been applied once I'm onboard?

 

Ask the Purser's Desk for a copy of your onboard folio; there will be a credit labelled as the shareholder benefit. In the case of Joint Tenants (two stockholders) the benefit is usually applied to the first passenger listed on the brokerage statement. Unlike other forms of OBC like rebates from your travel agent or gifts, there's not a slip in the cabin for the shareholder benefit.

Edited July 7, 2009 by VibeGuy
formatting

[VibeGuy]

Great summary, however, they stopped paying dividends to the shareholders.

 

The dividend has been set to 0.00/share or ADR for FY2009 (in an effort to conserve cash so they didn't have to go to the credit markets for the funds needed to pay the shipyards for already-contracted newbuilds); provisions remain to pay the dividend at the boards' discretion. In years past, shareholders received both the normal dividends and the Shareholder Benefit.

Edited July 7, 2009 by VibeGuy
Clarity

[VibeGuy]

Are there restrictions on the credit?

 

Yes; first off, you can’t get the credit if you’re sailing on a travel agent/employee discount/similarly-restricted rate. Additionally, some Princess-sponsored OBC offers conflict with the shareholder credit – you’ll only get the larger, not both. The Shareholder Benefit is combinable with travel-agent-provided OBC and the OBC purchased through the gift service.The official information says you can’t use the OBC for casino chips or the gratuities, but in practice, stockholders report otherwise; it simply appears on your onboard account as a positive balance, and the Hotel Charge (autotip) and casino charges just deduct from them.

[VibeGuy]

Do you have to own the stock at the time of sailing?

 

No. You have to provide proof of ownership at the time of your Shareholder Benefit request, which, contrary to the Investor Relations-provided information, must be made after final payment rather than after the deposit.

[VibeGuy]

Is this benefit good for multiple cruises? Do I have to buy a block of stock for each cruise?

 

Yes to the former, no to the latter! You get it for every qualified sailing from the same 100 shares. Personally, I have four sailings over six days in 2009 and received the credit for each of them.

[VibeGuy]

If I own more than 100 shares, can I get more than one OBC?

 

Not usually. The benefit is restricted to one benefit per cabin, and is applied to the account of the named shareholder. If you are booking two cabins (say, one for the kids) and have split the adults between cabins for paperwork purposes, some cruisers report success with each adult owning 100 shares and getting the credit.

[VibeGuy]

My cruise is after the expiration period in the official information – will they renew the credit for the next fiscal year?

 

Since the Shareholder Benefit was instituted, the benefit has been renewed every year by the board, but there are no guarantees they’ll do so for 2010. Caveat sailor/investor.

[VibeGuy]

I'm on two 7NTs as a B2B - do I get the 14+ day OBC?

 

If it’s booked as a single voyage number, you get the amount appropriate to the single voyage length. If it’s booked as two voyage numbers, you get the amount for each sailing. If it’s like Alaska, where the same sailing may be sold both as two 7NTs and a 14NT, the Shareholder Benefit is applied to the first 7NT sailing, and shipboard account balances transfer to the next if you haven’t used all the credit balance by the end of the first. If it's booked as two voyages, there are two separate credits applied, one to each folio.

[VibeGuy]

Is this a taxable dividend? Will these benefits be reported on a 1099-DIV for US shareholders?

 

No. This is considered a special benefit, like a discount on merchandise, and is not taxed under US law. I am not a tax professional, so don't take my word as the last one on this subject. Consult your advisor.

[VibeGuy]

Are CCL and CUK smart investments?

 

If I could predict stock prices reliably, you'd see an endless string of cruises in my sig. A registered investment advisor or your brokerage can provide you with information to make your own decision about the merits of this investment. All stocks carry a risk of loss.

 

Something to consider: at the current stock price as of July 1, 2009, if you take two one-week cruises per year, the stock would have to lose $2.00 per share before you'd actually be net out on the deal. If you cruise even more frequently, the benefits of ownership hedge your losses even more effectively. Make sure to tell your investment advisor approximately how much annual benefit you expect to receive from your ownership as onboard credit.

Edited July 7, 2009 by VibeGuy

[VibeGuy]

Do Carnival Corporation or Carnival PLC offer Direct Stock Purchase Plans?

 

Both Carnival Corporation and Carnival PLC have Dividend Reinvestment Plans, but neither seem to offer Direct Purchase Plans. You must purchase your shares through a brokerage.

[VibeGuy]

I see references to CCL and CUK - what gives?

 

Carnival Corporation trades on the NYSE as CCL; this represents shares in Carnival Corporation, a company domiciled in Panama. CUK, trading on the NYSE represent American Depository Receipts in LSE-traded CCL, or Carnival PLC, a remnant of the former P&O cruise business encompassing Princess and the P&O brand; the dual-listing structure helped to avoid some serious tax consequences of the merger. An excellent basic explanation of dual listings is found on Wikipedia.

 

Shareholders in CCL (NYSE-traded shares in Carnival Corporation or Carnival plc shares traded on the LSE) or CUK (ADRs traded on the NYSE) are eligible for the shareholder benefit.

 

Investing in ADRs involves currency and other unique risks; consult your investment advisor.

[English Tim]

How do I know the credit has been applied to my booking?

 

Give the talented Yield Management representative a couple of business days to apply the credit; after that...

 

1. Login to My Princess
    
   
2. Under the Circle Savings Account heading on the middle of the left side of the page, click View Details
    
   
3. Scroll down to the Account Summary heading and click the Onboard Credits tab; you'll see the credits for each upcoming sailing, listed by a Credit ID#, referencing your booking number.
   

 

If you don't see your credits after five business days, contact Yield Management.

 

Alas, this feature is not available to UK users, so it seems we only find out once we board or call the cruise line.

[AAAAmerican]

Call your Broker, Princess and/or the LSE in the UK then.:cool:

 

Thats would be a great suggestion for UKers.

 

 

Alas, this feature is not available to UK users, so it seems we only find out once we board or call the cruise line.

[VibeGuy]

Call your Broker, Princess and/or the LSE in the UK then.:cool:

 

Thats would be a great suggestion for UKers.

 

Note: the benefit is available to UK shareholders; the method of confirming the credit has been applied via My Princess is only available to customers who book through the US offices.

[badgerdee]

Thanks VibeGuy.

 

Is the benefit available to Australian shareholders too?

[VibeGuy]

Yes, the benefit is available to all shareholders in Carnival Corporation or Carnival PLC; I clumsily worded my reply above and got locked out of editing it when the boards went offline for the nightly maintenance.

 

The restriction mentioned above pertains only to using the My Princess online service to confirm that the benefit has been applied to a particular reservation. I have no knowledge of an online method for cruisers who book through non-US Princess offices.

[paul929207]

Vibeguy,

 

Nice summary.

 

Maybe we will get lucky and it will accomplish your goal.