Carnival Cruise Line In Profit Dip

Cruise operator Carnival has reported a fall in second-quarter profits of 93% as it battles higher fuel prices and the effects of the Concordia disaster.
Fuel increases of 12% for the second quarter has cost the company an additional $71m.

Meanwhile the company, which until recently had been reeling from the repercussions of the Costa Concordia incident- has seen bookings increase by 25% over a recent seven week period helped by aggressive price discounting.

Speaking at the company’s earnings conference call, Carnival’s chairman and chief executive Micky Arison revealed that the U K market had performed relatively well compared with the rest of Europe. “The U K wasn’t impacted as much (by the Concordia incident) as anywhere else. The U K held up pretty well throughout the (period).” However bookings from Italy and Spain where Costa is the primary brand is a more difficult market.

The John Proctor Travel view

After the immense damage done to the cruising industry by the Costa Concordia disaster, it is perhaps no surprise that the figures reported by the world’s largest cruise company (which includes Costa Cruises) has found that 2012 is a challenging year.

There is no doubt however that the publics appetite for cruising is still very strong and that the considerable efforts that have been made by the cruise lines to reassure the public that stringent safety standards are in place are working.

Cruising has become a huge part of the U K holiday industry and the growth of ships that are based in the U K means a commitment to the ex U K cruise market for a long time.

It is our belief that this year will see at worst a level market, but one that will probably still experience growth due in part to heavy discounting-yes, if you are considering it, this really is a good year to take a cruise!

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