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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter January 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Cruise Ship Trends

R&M Group Merges with Sea Level Marine

R&M Ship Technologies USA, Inc. has merged Sea Level Marine, LLC. in efforts to increase the range of services offered to the company’s global client base. By aligning resources,

Fincantieri Launches Majestic Princess for China

Italian shipbuilder Fincantieri has launched its first cruise ship destined for the Chinese market, and will now begin interior fittings ahead of the vessel’s delivery scheduled for spring 2017.

Anthem of the Seas to Port after Rough Night

Multiple media outlets including CBS News report that Royal Caribbean's new cruise ship Anthem of the Seas was hit by a strong strom, reportedly resulting in no

Navy

Migrants Reaching Europe by Sea Soars 10-fold

Ten times as many migrants and refugees arrived in Europe by sea in the first six weeks of the year as in the same period of 2015, and the number of deaths also soared,

Australia Submarines: It is Japan vs. France

While Japan is confident it has proven itself the best contender to build Australia's new submarines, the French have moved to undermine Japan’s bid to build the navy’s new submarines.

DCNS Deploys 3DEXPERIENCE Solution

Dassault Systèmes and DCNS partner on the 3DEXPERIENCE innovation platform for next generation naval defense solutions   Multi-disciplinary, Collaborative Innovation

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Pipelines Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | 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: 0.0664 sec (15 req/sec)