A deal like this is the fuel hedge of the cruise industry: It looks great when the chips are down, but it could come to represent a folly's worth of lost revenue if the biz picks up by next summer. Most likely Carnival didn't want to face an earnings report like Royal Caribbean's this week, in which the company that boasted bookings were up for the first two months of the year posted a $36 million loss -- although it was less than anticipated, which caused stock prices to jump.
One of the cruise destinations hardest hit by the downturn is in Vancouver's own neighborhood: Alaska bookings are down almost 50 percent from last year across the board for peak season, according to the Wall Street Journal.
Cruise prices are dropping, but not fast enough for a state where two-thirds of visitors spend at least one night on board; among the deals mentioned in the article are a second-passenger-free fare from Celebrity Cruises and a $299/person package on Princess Cruises. One thing's for sure, industry watchers who predicted the vice-presidential candidacy of governor Sarah Palin would lead to a tourism bump in her home state should probably fear for their jobs.
Related Stories:
· Cruise ships set for security in 2010 Games [Reuters UK]
· Royal Caribbean's first-quarter loss not as bad as expected [Miami Herald]
· March: Everyone Still Going On Cruises, Royal Caribbean Says [Jaunted]
· Alaska Fights a Tourism Cold Front [Wall Street Journal]
· Cruises coverage [Jaunted]
[Photo: Gregory Melle]
Comments (0)
Post a CommentReturn to » Carnival Cruise Boat Will Serve as Home for Olympics Security Personnel
Join the conversation!