Cheap Seats Hurt Princess Cruises

Thursday, February 15, 2001
Cheaper tickets for Caribbean cruises filled the decks but hit the finances of P&O Princess Cruises Plc last year when profits fell 11 percent. Most of the damage was reported in the fourth quarter, when operating profits fell more than 70 percent to $15.9 million due to high fuel prices, choppy exchange rates and the suspension of cruise calls to ports in Israel because of Middle East violence. And with prices of cruises booked so far through next autumn still lower than last year, trading conditions at the company -- which cast off from British shipping giant P&O last year -- are likely to remain tough in 2001. "We are already fully booked in the first quarter. But when you look further forward, there is still a competitive price situation in the U.S. and prices are a little below where they were the previous year," Chief Executive Peter Ratcliffe said. "If things stay as they are, we would anticipate yields coming down one to two percent," he added. Overcapacity and lower prices that shrink passenger yields plagued cruise operators internationally over the past financial year. An earnings warning at the start of last year by the world's biggest cruise group U.S. Carnival Corp. sent waves through the industry. As operators shifted their ships around the globe in the hope of catching more market share, supply in certain market has abounded and -- to the benefit of customers but dismay of operators -- prices have fallen. Ratcliffe said that by the fourth quarter, P&O's luxury liner Ocean Princess was facing tough competition from other ships in Caribbean and trans-Canal waters. Fuel costs in the fourth quarter were also $4 million higher, contributing to an overall $30 million oil bill for the year. There was good business throughout the year in Alaska, Europe and the British market, however, which helped mitigate the North American downturn.
Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Cruise Ship Trends

Port of Houston Expecting Record Year

The Port of Houston Authority is expecting 2014 to close as a banner year for the port, with 34 million tons of cargo handled through November, Executive Director

Duffy Named President of Carnival Cruise

Carnival Corporation & plc., the world’s largest travel and leisure company, today announced that Christine Duffy has been named president of Carnival Cruise Line,

Fincantieri Wins Carnival Cruise Ship Order

Fincantieri SpA has been awarded an order by Carnival Corporation & plc for the construction of two new cruise ships for Carnival Cruise Line and Holland America Line.

Navy

Damen Outfitting First of Nine Bahamas Patrol Boats

The first of nine Damen Stan Patrol 3007s ordered by the Royal Bahamas Defense Force has arrived at Damen Shipyards Gorinchem in the Netherlands for outfitting.

US Navy: Tortuga Allision Costs CO, XO Their Jobs

USS Tortuga's (LSD 46) Commanding Officer, Cmdr. Thomas Goudreau and Executive Officer, Cmdr. John Fleming, were relieved of their duties Dec. 16, due to loss of

Japan Gains Edge in Australia Submarine Deal

Australia and Japan appear to be inching closer to an agreement on the sale the top-secret technology from Japan to build a fleet of new generation submarines.

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Pipelines Pod Propulsion Salvage Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1612 sec (6 req/sec)