Carnival Cruise Lines 1Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings.

Turned a corner

“So, first of all, it feels like we’ve turned a bit of a corner. We achieved not only better than expected results for the second quarter, but we also achieved year-over-year earnings growth.”

favorable pricing trends in Europe and NA

“We were pleased to see our European brands revenue yields turn positive in the second quarter and particularly encouraged by the favorable pricing trends emerging not only in Europe, but in North America, as well”

Carnival trying to hold price at the expense of occupancy

” for the better part of the last year, Carnival Cruise Lines has been following a new revenue management tactic, holding price and giving up a few percentage points of occupancy.”

Efficiency improvement can come from leveraging scale, coordinating between brands

“I wanted to know we have a focus on it and where it emanates from is just coordination and communication and then single sourcing in some instances are limited sourcing, multi sourcing, you know, across the brands and just leveraging the scale that we have.

The brands individually have done good jobs at managing their costs. Some of the brands have done outstanding jobs. And we want to mine those best practices, deploy them across the fleet and across the brands.”

78 million passenger cruise days

” we fill 78 million plus passenger cruise days a year and $1 more per day is worth $78 million to us. So, the details matter and the discipline and the fine tuning matters.”

Booking patterns improved in Europe, expect to see something similar in the US

‘if you look at Europe in particular, the booking patterns have improved. So, people are booking further ahead than they did the prior year. Occupancy is up, yields are up, so that’s all very positive stuff. We expect to see similar trends, in due course, on a consistent basis in North America, as well.”