Carnival announces record sales and fare increases
 

http://tinyurl.com/ygx9gsf

Basically, Carnival says bookings have been great so far this year that
they have been able to adjust pricing upwards.... and effective March
22, they are looking to implement a fare increase across the board of up
to 5%.

Last week on my blog I mentioned that Royal Caribbean was experiencing
strong bookings and rising prices. I also mentioned that last minute
fares for most cruise lines have gone up.

What is unusual this morning is that Carnival made a public announcement
that they were raising fares. I've never seen that done before and am
somewhat puzzled by their motivations, since they have been steadily
raising prices already. Maybe they are trying to generate some
increased volume in sales over the next few weeks while we are in the
peak of Wave Season?

One thing for sure... this has had a big effect on stock prices. CCL is
up $1.23 and RCL is up $1.74 a share as of 9:48 AM EST.


--

George Leppla

Countryside Travel http://www.CruiseMaster.com
Blog http://cruisemaster.typepad.com/my_weblog/
Facebook http://www.facebook.com/CruiseMaster

Carnival announces record sales and fare increases
 

On Wed, 24 Feb 2010 08:49:08 -0600, George Leppla
wrote:

What is unusual this morning is that Carnival made a public announcement
that they were raising fares.

Hi George,

I agree with you that we are in a state of rising prices and cruise
lines notifying passengers in advance is a phenomenon we have not seen
in many years with a few exceptions. Other cruise lines such as
Oceania, Regency Seven Seas, and others have made similar
announcements recently. I believe this is a trend. At least the
cruise lines are making folks aware that prices are rising and they
should make their plans immediately if they want to avoid the price
increases.
--
Ray Goldenberg 800-719-9917 or 805-566-3905
Lighthouse Travel http://www.lighthousetravel.com
Follow us on Twitter http://twitter.com/lighthousetravl
Follow us on Facebook http://www.facebook.com/ray.goldenberg

Carnival announces record sales and fare increases
 

On Wed, 24 Feb 2010 06:54:59 -0800, Ray Goldenberg
wrote:

Regency Seven Seas,

Hi Everyone,

I should have said Regent Seven Seas. If that is the biggest mistake
I make today, then it will indeed be a very good day. :+)
--
Ray Goldenberg 800-719-9917 or 805-566-3905
Lighthouse Travel http://www.lighthousetravel.com
Follow us on Twitter http://twitter.com/lighthousetravl
Follow us on Facebook http://www.facebook.com/ray.goldenberg

Carnival announces record sales and fare increases
 

On Wed, 24 Feb 2010 10:20:23 -0600, George Leppla
wrote:

It is an interesting business..... and today is a bit more interesting
than others. It will be fun to watch how this all plays out.

Hi George,

Another point that I find interesting is that average fares are far
below the average fares of 2008. The industry, as you know, really
brought fares down last year due to the lack of demand. The low fares
stimulated the business to fill the ships but the cruise lines need to
normalize the fares AND fill the ships.
--
Ray Goldenberg 800-719-9917 or 805-566-3905
Lighthouse Travel http://www.lighthousetravel.com
Follow us on Twitter http://twitter.com/lighthousetravl
Follow us on Facebook http://www.facebook.com/ray.goldenberg

Carnival announces record sales and fare increases
 

Seehorse Video wrote:


You noticed that "up to" comment and I think that's important. "Up to 5%"
could well be nothing more than a trigger for booking now rather than later.
I would guess that very few of your clients book the lowest possible fare
for a cruise. Some want an outside, some want a balcony, some want a suite,
there are dozens of slightly different prices on a single cruise.
Basically, I will cruise when I can, where I want and how I prefer,
regardless of the threat of an increase. Lots of products and services
advertise coming price increases to drum up business short term.

How have the cruise stocks fared over the past couple of years? They are
not in my investment watch list.

In the past 18 months, Royal Caribbean dropped as low as $6 a share. in
2004, it was over $54. Carnival bottomed out at around $16. In
2004, it was $57

Now RCL is $27+ and CCL is a shade under $35.

I don't think we will see 2004 prices any time soon, but there were a
lot of profits made on cruise stocks in the past year.

--

George Leppla

Countryside Travel http://www.CruiseMaster.com
Blog http://cruisemaster.typepad.com/my_weblog/
Facebook http://www.facebook.com/CruiseMaster

Carnival announces record sales and fare increases
 

"George Leppla" wrote in message
...
http://tinyurl.com/ygx9gsf

Basically, Carnival says bookings have been great so far this year that
they have been able to adjust pricing upwards.... and effective March
22, they are looking to implement a fare increase across the board of up
to 5%.

Last week on my blog I mentioned that Royal Caribbean was experiencing
strong bookings and rising prices. I also mentioned that last minute
fares for most cruise lines have gone up.

What is unusual this morning is that Carnival made a public announcement
that they were raising fares. I've never seen that done before and am
somewhat puzzled by their motivations, since they have been steadily
raising prices already. Maybe they are trying to generate some increased
volume in sales over the next few weeks while we are in the peak of Wave
Season?

Something must be in the wind...I received an e-mail from Carnival Cruise
Lines saying the same thing...makes me wonder...hmmmm.

--Jean

Carnival announces record sales and fare increases
 

In article , Jean O'Boyle
wrote:

Something must be in the wind...I received an e-mail from Carnival Cruise
Lines saying the same thing...makes me wonder...hmmmm.

I think it is a ploy which they hope will be a self fulfilling
prophecy. Get demand to increase by scaring people into bookings now.
If they get more bookings by it then they can sustain the higher
prices.

--
Charles

Carnival announces record sales and fare increases
 

In article , Seehorse
Video wrote:

Lots of products and services advertise coming price increases to
drum up business short term.

That is what I think this is about. I don't think they can sustain
price increases until the jobless rate come down.

--
Charles

Carnival announces record sales and fare increases
 

"Charles" wrote in message
d...
In article , Jean O'Boyle
wrote:

Something must be in the wind...I received an e-mail from Carnival Cruise
Lines saying the same thing...makes me wonder...hmmmm.

I think it is a ploy which they hope will be a self fulfilling
prophecy. Get demand to increase by scaring people into bookings now.
If they get more bookings by it then they can sustain the higher
prices.

I agree, Charles...With unemployment so high, why would they consider
raising prices?.
Sounds more like greed by using scare tactics to me .
--Jean

Carnival announces record sales and fare increases
 

On 2/25/2010 1:40 AM, Jean O'Boyle wrote:
wrote in message
d...
In , Jean O'Boyle
wrote:

Something must be in the wind...I received an e-mail from Carnival Cruise
Lines saying the same thing...makes me wonder...hmmmm.

I think it is a ploy which they hope will be a self fulfilling
prophecy. Get demand to increase by scaring people into bookings now.
If they get more bookings by it then they can sustain the higher
prices.

I agree, Charles...With unemployment so high, why would they consider
raising prices?.
Sounds more like greed by using scare tactics to me .
--Jean


Prices are raised or lowered based on models used for so-called yield
management software using data such as current bookings as compared to
bookings in comparable periods in previous years. The press release
suggests that effective March 22 the model will be tweaked. Note further
that the press release only deals with the Carnaval brand (Carnival
Cruise Lines), not Carnival Corporation. Actually some of Costa's Asia
cruises and some of HAL's European cruises are offered at prices even
lower than last year's.