Posts Tagged ‘RCL’

Have cruise prices and revenues softened for European sailings?

Cruise stocks have been on some ride over last few weeks.  Both Royal Caribbean (RCL) and Carnival (CCL) touched new 52-week lows early this week, only to rebound with the overall market as stock prices whipsaw in reaction to the daily cycle of news out of Europe.

Headlines jump between “Greek Default Unavoidable” to “Greek Aid Likely,” and ”Eurozone Contagion” to “Banks are Stress Tested.”

Trying to predict and trade the swings boarders on madness, but one can predict the impact on cruise cabin prices for sailings with European itineraries.

Click on the interactive chart below.  One can see with each “Priced on Month” closer to a European sailing departure, the Total Weighted Average* price has come down – more so for the nearer term sailing dates.

Indeed, European pricing trends were confirmed by Carnival’s most recent 3rd quarter earnings conference call

 “In Europe, the sovereign debt issues and the related concerns about the strength of the European banks contributed to the slowdown in EAA brand bookings. These issues, together with related declines in consumer confidence in the various markets in which we operate, seem to have contributed to the softened booking activity during this August and early September period.”

Insights into how the cruise lines are performing in other regions of the world, and how pricing changes impact forward earnings can be accessed from our proprietary database.  It tracks daily ticket prices and passenger sailings to port destinations for over 8,000 annual cruises.  With an exclusive window into the pricing of virtually every sailing, every day, world wide (including Carnival Cruise Lines (CCL), Royal Caribbean Cruises Lines (RCL) and Norwegian Cruise Lines (NCL)) our subscribers can view cruise revenue and passenger trends in near real time.

* Cruise Market Watch’s proprietary weighted average of the daily advertised price for each ships cruise sailing for each cabin category (on a per sailing day basis).  Weighting based on the total number of cabins on each ship in each category.

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Royal Caribbean’s ad campaign “Get Out There” is going, going, gone…

The Wall Street Journal is reporting Royal Caribbean and new agency partner JWT are launching a new ad campaign Monday, November 10.

The launch follows by only a few days Carnival’s new campaign – interestingly with former Royal Caribbean agency Arnold.

Royal Caribbean is sailing away from the successful 9-year-old "Get Out There."  The new campaign is dubbed "The Nation of Why Not."  The Nation of Why Not kicks off with two television commercials (30-second and 60- second versions) inviting vacationers to secede from land and become citizens of “the nation.” The tongue-in-cheek spots - a combination of live action and animation - begin November 10, during morning show programming on ABC and NBC television networks, and during primetime programming on ABC and CBS. The commercials highlight Royal Caribbean’s global destinations.

 

The reason given by the Wall Street Journal is RCL is going after more revenues from European and Asian consumers. WSJ cites Royal Caribbean’s third-quarter earnings call last week when it was stated that more than 40% of revenues will come from outside of North America in 2009 , up from 30% last year.

While that may be true, I think the strategy is larger than that.  After all, 60% of revenues will still be from North America.  “The Nation of Why Not” may also be a smart, timely play off the recent historic election and current forward-looking mentality towards economic recovery.  In addition, research shows destinations play an important role in consumer cruise choices, so RCL may be promoting its depth of destination alternatives to U.S. consumers.

The ads creatively challenge viewers to do things at sea that they could not do on land, such as “Why not ice skate on the equator and climb mountains at sea?” Additionally, print ads will launch in forty newspapers nationwide on Sunday, November 16, 2008.

Travel and cruise industry professionals will be introduced to The Nation of Why Not on Monday, November 17, with the first edition of “The Why Not Herald,” an insert in key travel trade publications across the United States and Canada. Subsequent editions will feature the new brand campaign’s print advertisements.

See the Nation of Why Not 

Updated 10/10/08

 

Biggest Ever All Deaf Cruise Aboard the Freedom of the Seas

If you are a reader of my blogs, you know I love unique.  And it doesn't get much more unique than combining the biggest ever all deaf cruise with Justin Kent, the inventor of the world’s first MIDI Turntable, an optical system for DJing video.

DJ/VJ Justin Kent created history October 28, 2007 when he joined with the Sencity team (Sign Dancers, Deaf Dancers, Aroma Jockeys) to transform sound into vision. Performing with his signature EJ Turntable, Justin turned the Freedom of the Seas into a South Beach nightclub.

By spinning rhythmic visuals for 2,000 hearing impaired guests, he helped the passengers feel the music, whether or not they could hear it.  Kent told Cruisemarketwatch it “gave me an unprecedented opportunity to focus on how the music looks, for people that experience vision and sound in a totally different way. This might be the biggest challenge a DJ could possibly face.” For more info, visit Passages Deaf Travel.

 

Island Cruises brand no longer under Royal Caribbean

 

Liberty of the Seas - Royal Caribbean Internat...

Liberty of the Seas - Royal Caribbean International (Photo credit: Timothy Wildey)

Announced today, RCL sold off its stake in Island Cruises and will move its control of one ship from the group to the Pullmantur brand.