Carnival 1Q14 Earnings Call Notes

A digest of some of the top insights that I’ve gathered from this week’s earnings calls.  Full notes can be found here.

Brand recovery pretty much complete

“brand perception is most of the way back, consideration among brand loyalist have previously recovered and now the new to cruise is back, and we are working to complete perception recovery among switchers.”

Continue to drive brand through promotion including social media

” And so obviously, we want to drive demand, and we will do that through promotion period. So that’s advertising through social media, or whatever, and we will continue to invest in that.”

Opportunities to cut costs and grow revenue, revenue is the real opportunity though

“our opportunity is scale. We have 78 million passenger cruise days a year. We have 10 million guests a year. And on the revenue side, small moves on the revenue side produce substantial cash flow and operating earnings opportunity for us. And so we are going to do both, we are going to walk and chew gum, but the big opportunity is clearly on the revenue side.”

Wont see big industry capacity increases this year

“I won’t say, ships are moving out, but it’s highly unlikely we’ll see the level of capacity increase next year that we see in this year.”

Pulse advertising

“And so we’ll examine it. I’m a personal believer and pulsing that you advertise for a period of time, then you take a little break and you advertise. We have 10 brands. We can manage that over but we’ll see how it works out and I don’t have any preconceived notions. I want to hear from the brands in terms of what they think is having the greatest impact and evidence they can provide to that.”

Seeing strength in Europe

“And I will say in general, in Europe, we do as I mentioned earlier on the call, with the booking curves being moved out we see strength in Europe. And again, it’s reflected in our guidance, but we actually see a strong performance collectively in Europe this year.”

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