What is the future of RCCL

[Islandbear]

In my reading of the companies business plan, RCL sees the American market as having reached saturation. They are focusing on the European Union, South Americans, Australians and Middle Eastern vacationers to start filling the rooms that Americans are leaving empty. Therefore the shift to foreign departure ports convenient to those market segments.

 

So, the reason the Med cruises are in higher demand and therefor higher priced, is that RCL is successfully marketing them to Non-Traditional cruisers from outside North America.

[hmsdos]

One of the "benefits" to RCI is that there is so much conversation about "leaving" RCCL for Azumara, Celebrity and the other lines under the RCI umbrella... think that it might be the objective of a business plan made a few years ago. RCCL re-focused to compete for the "family" business... with the other lines meeting the needs/wants/expectations of the "former" RCCL passengers. So... in these bad times... if you are moving to another RCI line....that isn't a bad thing for the Company.

[Islandbear]

Correct the last dividend was 9/15/08 recorded, $0.15 per share. No more quarterly dividends have been paid since then. The company officially announced that it would stop paying dividends on November 18, 2008.

[Islandbear]

One of the "benefits" to RCI is that there is so much conversation about "leaving" RCCL for Azumara, Celebrity and the other lines under the RCI umbrella... think that it might be the objective of a business plan made a few years ago. RCCL re-focused to compete for the "family" business... with the other lines meeting the needs/wants/expectations of the "former" RCCL passengers. So... in these bad times... if you are moving to another RCI line....that isn't a bad thing for the Company.

 

It is called market segmentation. RCCL will shuffle their customers out into the lines that meet their specific needs. RCL will be the low cost entree level cruise line for families and people on limited incomes, Celebrity the sharp, sophisticated upgrade, and Azumara the premier class for world travelers.

 

But, in a world recession you are seeing the upscale lines discounting and taking market share away from the economy class ships. For example you can book a Windstar Suite for just $999 this winter. So many cruisers are moving up to better lines and experiencing better service, food, chocolates on the pillows and less hassles about bringing liquor on board and other "Nickle & Dime" issues that piss off even loyal RCL cruisers. When the recession is over and prices spread out again, some will go back to RCL as a value cruise line, while RCCL is hoping others will pay more for the level of service they get on the other lines.

[jmraggs]

And how did you do get a dividend when RCI suspended payments some time ago? I also own stock and did not receive any dividend.

 

Exactly, believe very little on these forums where people post as you can say anything without proof. I also own stock, and as far as dividends, I am SOL.:D

[tcocktail]

Being that the market is so saturated in the USA, why did Celebrity pull their ships from the Europe especilaly the Soltice and the Summit? I guess the Summit, because it's a niche market to Bermuda but why the Soltice to the Caribbean 2010?

[negc]

The usual reason for redeploying ships from one market to another is that they can more easily fill the ship in the new market and/or operate more profitably there. Market demand can fluctuate significantly as the currency exchange rate changes, or the presence of too many ships exceeds the demand, or, as in the case of Alaska, local taxes and policies make it onerous for the line to continue to deploy as many ships in its fleet to a particular market. It could be any of the above reasons but only the officials at Celebrity know all of the facts. We can only speculate.:) If you read these boards regularly you will see that not everyone would agree that the US market is saturated, especially the Caribbean in the summer months. The line is just taking advantage of one of its strengths, the ability to move its ships to reflect current demand.

[G'ma]

I dont think they will go out of business. They are still very strong. If it ever goes towards that point though - Don't worry because Obama will just send them our tax dollars to help them. No worries!

 

This is not the place for political opinions. It is a cruise forum.

[Islandbear]

.....:) If you read these boards regularly you will see that not everyone would agree that the US market is saturated, especially the Caribbean in the summer months. The line is just taking advantage of one of its strengths, the ability to move its ships to reflect current demand.

 

Forbes Magazine Dec 2008: "Over the last five years, bed-day statistics from the Cruise Lines International Association show travel to the most popular Caribbean and Bahamas destinations, comprising 37% of total cruise travel, has not been growing.

Cruise managements are aware of this and have been building new destination routes to compensate for the saturated markets. Transatlantic and South America bed days have more than doubled in the last two years, while Mediterranean bed days have risen 60% during the same period. But the primary markets are saturated with competition.

To make things worse, over the next two years the North American cruise industry will add 20 new ships, which will create another 18% more beds to fill. This new capacity could not have come at a worse time. The "wave season" runs from January through mid-March and is typically the busiest booking period of the year. By the end of this first quarter, it will be clear whether cheaper rates are here to stay and whether the cruise industry stocks have peaked."

[aurelius180]

This is not the place for political opinions. It is a cruise forum.

 

 

Fortunately no one stated a political opinion.

 

This is a thread on possible hypothetical outcomes for RCI during this economic environment. Unfortunately given the very recent events' date=' the poster gave a [b']somewhat[/b] plausable scenario. I emphasize somewhat because I feel it's a very unrealistic scenario.

[Islandbear]

SAO PAULO, Aug. 6 /PRNewswire-FirstCall/ -- Royal Caribbean Cruises Ltd. is ramping up its commitment to growing the South America cruise market with the official opening of a new office in Sao Paulo, Brazil. "The cruise market in Brazil is one of the fastest growing in the world, and with increased investment and commitment, we aim to accelerate this trend," said Goldstein.

[Islandbear]

Jul 29, 2009 The Miami Herald; "One bright spot, executives said, is that Royal Caribbean is attracting more European cruisers, particularly on European cruises where they account for 56 percent of passengers."

[TP99C5]

Getting to be like the U.S Goverment, screw the people!!!

[derftegel]

Anyone going to sail "Barack of the Seas" when U S Govt takes over RCCL?:eek:

[Cruise-Nut]

This is not the place for political opinions. It is a cruise forum.

 

Relax - it was a little joke!

[jty1220]

They will get back some of that soon when the Diamonds get kicked out of the Concierge Lounge next month.

 

 

What is the concierge lounge?

[Islandbear]

RCL stock had a good day and is up 4.14% today.

[negc]

Relax - it was a little joke!

 

Clearly a very little one and neither terribly creative or funny.:rolleyes:

[Ocean Boy]

Exactly, believe very little on these forums where people post as you can say anything without proof. I also own stock, and as far as dividends, I am SOL.:D

 

I'm still waiting for that poster to come back and explain how he got his dividend. It is easy to understand people having differences of opinions on subjects but not people posting inactuate information on something that deals only with fact and not opinion.

[Islandbear]

I'm still waiting for that poster to come back and explain how he got his dividend. It is easy to understand people having differences of opinions on subjects but not people posting inactuate information on something that deals only with fact and not opinion.

 

It just goes to prove that people see and hear what they want to. For him RCL is doing fine, & paying a dividend.

 

The fact is that all of the cruise lines are struggling to stay afloat in this economy. RCL might even be in worse shape because of the added burden of the three new mega ships on order.

 

Just because you enjoyed your last cruise doesn't make the cruise ship company a good investment.

[Ocean Boy]

It just goes to prove that people see and hear what they want to. For him RCL is doing fine, & paying a dividend.

 

The fact is that all of the cruise lines are struggling to stay afloat in this economy. RCL might even be in worse shape because of the added burden of the three new mega ships on order.

 

Just because you enjoyed your last cruise doesn't make the cruise ship company a good investment.

And that line is one of the best pieces of advice I have read when it comes to investing.

[G'ma]

Relax - it was a little joke!

 

Not for everyone. That's why politics needs to stay off these forums.

[ruskatab]

And how did you do get a dividend when RCI suspended payments some time ago? I also own stock and did not receive any dividend.

 

Dang I got all excited and had hubby go check our account, no divi payment.

[BruceMuzz]

Surely you people must know that the Hyatt Hotels and Seagrams Spirits people have their money behind RCCL. Makes for a very nice cushion in hard times.

[RetireeWannabee]

Not concerned about the cruise line and certainly not the 'future of cruising.' Economic downturn, many companies are losing money. Inevitable economic upturn, many companies make more money than ever.

 

just a blip. and not an alarming one. they are very large, this is not a staggering loss.