Saturday, 4 February 2012

Costa accident hurts Royal Caribbean's booking levels


Costa accident hurts Royal Caribbean's booking levels

By Donna Tunney
The Costa Concordia accident on Jan. 13 has had a “significant impact on bookings in the near term,” said Royal Caribbean Cruises Ltd. in its 2011 financial report on Thursday.

RCCL's U.S. brands are Royal Caribbean International, Celebrity and Azamara.

“Overall booking volumes from North America have fallen by low to mid-teen percentages versus same time last year for the last few weeks. In Europe, where media coverage hasbeen more extensive, the decline has been higher, though results vary significantly by country. In aggregate, the company's other markets, including Asia-Pacific and Latin America, are down slightly,” the company stated.

The impact on bookings has been greatest in the first three quarters and “wanes as the year progresses,” the company said.

RCCL, the world's second-largest cruise operator after Carnival Corp., said there has been “no material change” in cancellation activity, but that new bookings have been affected.

Carnival Corp., in a filing to the Securities and Exchange Commission on Jan. 30, reported that booking levels across its brands, not including Costa, had dropped by a “mid-teen” percentage.

RCCL’s net income for 2011 was $607.4 million, up from $515.7 million in 2010.

Revenue rose to $7.5 billion, up from $6.8 billion.

For the fourth quarter, net income was $36.6 million, up from $31.9 million in 2010. Revenue increased to $1.8 billion, up from $1.6 billion. Net yields increased 3.5%.