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 August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Cruise Ship Trends

Steel Cut for Third RCI Quantum-class Cruise Ship

The steel cutting for 'Ovation of the Seas', scheduled to be delivered in the autumn of 2016, took place at the Meyer Werft shipyard in Papenburg, Germany, where 'Quantum of the Seas',

Holland America Line's New Ship is ms Koningsdam

Holland America Line revealed the name of its new 99,500-ton cruise ship slated for delivery in February 2016 will be ms Koningsdam. While the name pays homage

L-3 MSI to Equip Third Quantum Class Ship

L-3 Marine Systems International (L-3 MSI) announced today that it has been awarded a contract to provide a range of navigation, lighting and communication systems

Navy

ONR Funds UW Oceanographic R/V Refit Contract

The US Department of Defense informs that the University of Washington (UW), Seattle, Washington, is being awarded a $12,776,050 cost reimbursement contract for

Navy, Other Agencies, Award Bio-refinery Contracts to 3 Firms

As part of a 2011 Presidential directive, the Departments of Navy, Energy, and Agriculture have announced that three companies have been awarded contracts to construct

AN/SPY-1 SSSA Completes Critical Design Review

The Critical Design Review (CDR) stage for AN/SPY-1 radar Solid-State Switch Assembly (SSSA)'s high voltage modulator completed Aug. 26, confirming that the

 
 
Maritime Careers / Shipboard Positions Maritime Standards Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction 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: 0.2253 sec (4 req/sec)