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

Cruise Ship Trends

Burger Boat to Build New Passenger Vessel

Burger Boat Company announced that it has received a contract for the construction of an 89-foot (27-meter) steel passenger vessel for Wendella Sightseeing Company, Chicago, Ill.

Holland America Line Offers ‘Explore 4’ Early Booking

Holland America Line knows the trend for savvy travelers is to book vacations well in advance. To encourage those early bookings the line is returning with its

Fred. Olsen's ‘Poison, Murder & Mystery Cruise’

Fred. Olsen Cruise Lines is proud to introduce a very unique cruise experience for Summer 2015, aboard its 880-guest ship Boudicca, the like of which guests

Navy

Today in U.S. Naval History: July 30

Today in U.S. Naval History - July 30 1918 - Units of First Marine Aviation Force arrive at Brest, France 1941 - Japanese aircraft bomb USS Tutuila (PR-4) at Chungking,

The Martitime Security Focus Is Shifting

Former Vice-Admiral and Commander-in-chief of the German Navy Hans-Joachim Stricker, President of the German Maritime Institute (DMI), believes that in terms of

VSTEP Wins Mexican Navy Simulator Contract

The Mexican Navy selected VSTEP to supply a Class A NAUTIS Full Mission Bridge (FMB) Simulator and 24 NAUTIS desktop trainer stations for the Naval Academy in Veracruz.

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Port Authority Salvage 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: 0.2019 sec (5 req/sec)