Carnival Reports Higher Profits

Last month, I wrote about Royal Caribbean’s drop in profits compared to last year.  Last week, it was archrival Carnival Corp.’s time to report earnings. In contrast to Royal Caribbean’s report, Carnival’s profits actually rose from the same period last year. Earnings per share rose by 10%. A closer look at the numbers, though, reveals that the increase is likely due to a reduction in costs, as revenue actually fell.  This is due to the dramatic price reductions we’ve seen due to the economy. As Carnival’s CEO Micky Arison put it: “We’ve had very strong volume against very lousy rates.”

Of course, the drop in rates is very good news for travelers, if not for the cruise lines. Take for example the prices on Carnival Freedom’s upcoming cruises:

Carnival Freedom Offers

When you think of Carnival, though, keep in mind the company not only owns the “Fun Ships”. They own such varied brands as the venerable Cunard, the classic Holland America, Princess Cruise Lines, and the Yachts of Seabourn, among other brands. This range attracts a very diversified customer base, and it allows their customers to “mature” from one line to another. A first time passenger on Carnival may want to try Princess for a different atmosphere, or may move to Holland America or Cunard as they get older and more affluent.

In short, if you want a cruise, it’s likely one of Carnival’s brands will have what you’re looking for. They offer different experiences and are targeted to different audiences. If you’re thinking about a cruise, please let us help you find the right one for you.


Enrique Brener
KC Travel
N. Miami Beach, FL
FL Seller of Travel Reg. TI-35171


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