Skift Take
Bottled-up need isn’t simply the desire to begin traveling once again. In the case of Carnival Corp. travelers, it means spending big to take pleasure in life throughout sailings.
Dennis Schaal
After the almost year-and-a half suspension of cruises because of the pandemic, Carnival Corp. passengers back on the high seas are spending huge on food, booze and activities.
While Carnival Corp. announced Monday that it recorded a net loss of almost $2 billion in the 4th quarter, which ended November 30, one intense spot was passenger spending on its ships.
Profits per guest cruise day, which includes cruise fares and on-board costs, rose 4 percent to $5.96 billion in the 4th quarter compared with the same duration in pre-pandemic 2019, Carnival reported.
“The boost was driven in part by incredibly strong on-board and other income,” Carnival specified.
The Carnival Cruise Line brand name saw double-digit growth in earnings per traveler cruise day for the second consecutive quarter, the company said.
Breaking down the Carnival Corp. numbers, guests spent usually roughly $216 daily, including for cruise fares and on-board invest in the fourth quarter of 2021, and that was 4 percent more than during the fourth quarter of 2019.
In the fourth quarter of 2021, of that $216 guests spent approximately $103 per day on board Carnival ships.
“Absolutely, we’re seeing greater spending levels on board,” CEO Arnold Donald told financial analysts. “There’s no concern about that.”
Part of the factor is due to the fact that Carnival is selling bundles, that include additional on-board spend, he stated.
“But today, there’s also, I’m sure, just this bottled-up need where individuals are distressed to go out and experience things and having fun which’s also appearing in on board revenues today, which are very strong,” Donald said.
With a forced almost a year-and-a-half pandemic-induced suspension of sailings, which ended in July, guests are apparently letting their wallets do the talking, and are living big.