Carnival Cruises FY 1Q15 Earnings Call Notes

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Capacity up 2%

“Our capacity increased almost 2%. The North American brands were up 3%, while the European, Australia and Asian brands also known as our EAA brands, were flat. Our total net revenue yields in the first quarter were up 2%.’

Fuel hedges can go against you too

“Your point about the fuel, yes, the fuel price did move. But one of the things the fuel collars or the fuel derivatives offset a big chunk of the fuel price movement. And the reason that that happened was while the brent fell, our fuel price did not fall by as much as brent because when we did our December guidance, the [crack] [ph] spread was 75%, roughly speaking and at this point in time it’s 81%. So brent fell by far more, 6% or so more, than the price of the fuel that we purchase and so that’s why it wasn’t a perfect 50% offset there.”

It’s tough to measure advertising’s direct impact

“the reality is that following advertising’s direct impact is always a difficult challenge. What we can measure is the level of communication. Web site hits, impressions, conversations around the brand. That we can measure. And so we know we had a lot more conversations generated about cruising. There is no question about that. We would hope that over time that translates to greater demand and ultimately bookings and higher yield”

If you give your customer what they want they’ll buy it

“t’s not so much change in consumer behavior as much as us listening to our guests and giving them more of what they want. And if you give them what they want, they will buy it.”