New law forces Carnival Cruise Line to change advertised price for cruises

Table Of Content

• Is Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) A High Quality Stock To Own?
• Media Services
• Norwegian Cruise Line Holdings Reports Third Quarter 2021 Financial Results and Provides Business Update
• Norwegian Cruise Line Earnings History by Quarter
• Norwegian Cruise Line (NCLH) Earnings Date, Estimates & Call Transcripts
• Norwegian Cruise Line (NCLH) Makes a Big Splash After Earnings

They're, however, included in the total cost, meaning that the fare itself is close to $699. This leaves little to surprise guests with, especially with some port fees amounting to hundreds of dollars per person. Owning cruise stocks when supply growth has been low for an extended period of time, as per the analyst. While the headline of eight ships might make investors panic, the analyst urged them to look at the fine print. Interest Expense, net is expected to be approximately $160 million for the fourth quarter 2021 and approximately $620 million for full year 2021, excluding losses on extinguishment of debt and debt modification costs. Depreciation and Amortization is expected to be approximately $175 million for the fourth quarter 2021 and approximately $695 million for full year 2021.

Is Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) A High Quality Stock To Own?

The resulting slowdown in net booking volumes was heavily weighted to sailings in the fourth quarter of 2021 and early 2022 and improved sequentially through 2022. The impact has since abated and net bookings have materially improved over the past six weeks with particular strength for bookings related to sailings in the second half of 2022 and into 2023. This year's ‘wave season' will break revenue records for cruise lines, but investors are wary of the massive debts the industry took on during the pandemic.

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Results are interpreted as buy, sell or hold signals, each with numeric ratings and summarized with an overall percentage buy or sell rating. After each calculation the program assigns a Buy, Sell, or Hold value with the study, depending on where the price lies in reference to the common interpretation of the study. For example, a price above its moving average is generally considered an upward trend or a buy. Cruise stocks rallied in intraday trading Tuesday after a strong earnings report and forecast from Norwegian Cruise Line Holdings (NCLH). Norwegian is also projecting full-year earnings per share of 70 cents in 2023, well below expectations of $1.04. The guidance comes as the company struggles to reduce the costs and debt weighing down the business.

Norwegian Cruise (NCLH) to Post Q4 Earnings: What's in Store? - Yahoo Finance

Norwegian Cruise (NCLH) to Post Q4 Earnings: What's in Store?.

Posted: Mon, 26 Feb 2024 08:00:00 GMT [source]

Norwegian Cruise Line Holdings Reports Third Quarter 2021 Financial Results and Provides Business Update

Norwegian said its costs continue to rise, exacerbated by inflation, even as it returns more ships to service. Del Rio did not rule out an equity raise to manage debt, but he said it wouldn't be "prudent to issue more equity to de-lever the company," even though "there's a lot of work to do." It neither impacts the total price of the cruise nor the portion of the fare that's commissionable to travel agents. After the delivery of four Prima-Plus class ships from 2025 through 2028, the cruise operator is expected to take delivery of four approximately 200,000-gross-ton ships, each with a capacity of nearly 5,000 guests, in 2030, 2032, 2034, and 2036. The sum of total cruise operating expense and marketing, general and administrative expense.

NCLH Related stocks

Though both cruise fares are around the same price ($889 vs $904 per person), the cruise to Alaska is more expensive, costing two people around $2,300. With the new law, port fees will have to be included in the advertised price and not added at the final stage of booking. It doesn't matter if you're staying in a lavish two-bedroom suite or a standard inside cabin, everyone onboard will pay the same amount. Additionally, unlike gratuities, port fees are part of your total cruise fare and must be paid in full by the time of final payment. For instance, if Carnival Cruise Line's website is advertising a fare that's $849, the fees will be broken down in the final stage of the booking process. In this case, they may amount to $100 in Required Cruise Fees and Expenses and $50 in Government Taxes and Fees.

Non-newbuild capital expenditures for full year 2022 are expected to be approximately $500 million. The Company's monthly average cash burn for the third quarter 2021 was approximately $275 million, below prior guidance of approximately $285 million. Looking ahead, the Company expects fourth quarter 2021 monthly average cash burn to increase to approximately $350 million driven by the continued phased relaunch of additional vessels.

Norwegian Cruise Line (NCLH) Surpasses Market Returns: Some Facts Worth Knowing - Yahoo Finance

Norwegian Cruise Line (NCLH) Surpasses Market Returns: Some Facts Worth Knowing.

Posted: Mon, 18 Mar 2024 07:00:00 GMT [source]

The S&P 500 Index ($SPX ) (SPY ) Friday closed down -1.46%, the Dow Jones Industrials Index ($DOWI ) (DIA ) closed down -1.24%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) closed down -1.66%. We’d like to share more about how we work and what drives our day-to-day business. Weakness in consumer spending spurred by an economic downturn could affect discretionary spending, leading pricing to soften and lower onboard spending. As Norwegian is smaller than its North American cruise peers, it has the ability to deploy its assets nimbly as cruising demand rises, allowing for strategic pricing tactics. A Norwegian cruise ship has been denied permission to dock in Mauritius over fears of a potential cholera outbreak on board.

The third quarter 2021 cash burn rate and fourth quarter estimate also reflect the deferral of debt amortization and newbuild related payments. Total cruise operating expense increased 131.3% in 2021 compared to 2020 as cruise voyages resumed in the quarter. As previously stated, based on its current trajectory and market and public health conditions, the Company expects to be profitable for the second half of 2022. California's new consumer protection law will alter how Carnival advertises its cruise fares. Starting on July 1, 2024, the price must include many components of the current taxes, fees, and port expenses that are left out. It's meant to provide guests with a clear price upfront, rather than leave them surprised by additional fees later on during the booking process.

Additionally, the email clarified that the change won't impact the commission paid to travel agents. "In all Travel Advisor disclosures," the email states, "we will provide a full breakout of the pricing to document the portion that is commissionable." This change was sent in an email from Cunard to travel agents to inform them of the policy change that will impact Carnival Corporation's brands, including Princess Cruises, Holland America Line, Cunard North America, and, of course, Carnival Cruise Line. The brands will follow this advertising requirement for all consumer advertising throughout the U.S. and Canada to avoid confusion regardless of where the traveler is trying to sail. With a historically smaller fleet, the company has been building new ships more aggressively versus peers in order to enter/serve certain markets.

Put another way, it reveals the company's success at turning shareholder investments into profits. Norwegian has lagged behind its competitors, although others are still posting losses as the industry battles higher fuel prices and interest rates. CEO Frank Del Rio said the company's first 2023 quarter "will be the highest cost quarter," but added that the second half will be better. Norwegian is projecting losses of 45 cents per share in the first quarter, 10 cents higher than Wall Street had anticipated. This will give potential cruises a better understanding of the true cost of their cruise upfront, helping them make informed decisions when comparing vacation options. Before getting your hopes up, you'll be able to understand whether or not the deal is actually too good to be true or not.

The new ship orders across all three brands are scheduled for delivery over a ten-year period, between 2026 and 2036. The following reflects the Company’s expectations regarding fuel consumption and pricing, along with accompanying sensitivities. Interest expense, net was $161.2 million in 2021 compared to $139.7 million in 2020. The increase in interest expense reflects additional debt outstanding at higher interest rates, partially offset by lower LIBOR.

(1)   These derivatives were de-designated for accounting purposes in the fourth quarter of 2020 and first quarter of 2021 but still represent economic hedges and may be re-designated in the future. (1)   For the remainder of 2021.As of September 30, 2021, the Company had hedged approximately 47%, 35% and 14% of its total projected metric tons of fuel consumption for the remainder of 2021, 2022 and 2023, respectively. The following table provides amounts hedged and price per barrel of heavy fuel oil (“HFO”) which is hedged utilizing U.S. Gulf Coast 3% (“USGC”) and marine gas oil (“MGO”) which is hedged utilizing Gasoil. Revenue increased to $153.1 million compared to $6.5 million in 2020 as cruise voyages resumed in the quarter.

Our non-GAAP financial measures may not be comparable to other companies. Please see a historical reconciliation of these measures to the most comparable GAAP measure presented in our consolidated financial statements below. NCLH, -1.48% jumped 6.6% in premarket trading Tuesday, after the cruise operator reported a wider-than-expected fourth-quarter loss, but expects a surpris...

GAAP net loss was $(845.9) million or EPS of $(2.29) compared to net loss of $(677.4) million or EPS of $(2.50) in the prior year. The Company reported Adjusted Net Loss of $(801.4) million or Adjusted EPS of $(2.17) in 2021 which included $44.5 million of adjustments primarily related to non-cash compensation. This compares to Adjusted Net Loss and Adjusted EPS of $(638.7) million and $(2.35), respectively, in 2020. The Barchart Technical Opinion widget shows you today's overally Barchart Opinion with general information on how to interpret the short and longer term signals. Unique to Barchart.com, Opinions analyzes a stock or commodity using 13 popular analytics in short-, medium- and long-term periods.