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Royal Caribbean's profits fall 92%

Royal Caribbean Cruises Ltd., the world's second-largest cruise line, said Tuesday its first-quarter profit sank 92 percent from the year-ago period, mainly because of higher cruise operating expenses and its acquisition of Spanish cruise and tour operator Pullmantur.

Net income sagged to $8.8 million, or 4 cents per share, for the three months ended March 31 vs. $119.5 million, or 55 cents per share, in the prior year.

Analysts polled by Thomson Financial expected earnings of 6 cents per share.

The company said Pullmantur's business is highly seasonal with very strong summer months but very weak winter months. It also included a two-month lag in Pullmantur's results. The changes hurt its first-quarter earnings, with Royal Caribbean saying it will also affect second-quarter results.

Revenue for the quarter rose 6 percent to $1.22 billion from $1.15 billion in the previous year. Wall Street consensus estimates put sales at $1.18 billion.

But total cruise operating expenses rose faster, climbing 15.2 percent to $841.3 million from $730.1 million.

The company continued to lament a weak demand environment in the important Caribbean market -- a problem besetting the entire cruise industry and hurting net yields.

Success in Europe and Alaska have helped offset problems in the Caribbean. Royal Caribbean announced earlier this year its largest deployment in Europe with seven ships visiting in 2008.

"I think we are seeing -- frankly everyone in the industry is seeing -- the same type of phenomenon," Chairman and CEO Richard D. Fain told investors in a conference call. "These new markets are opening up really very quickly and I think everyone is taking advantage of it and there's limitations on how much new capacity we can add."

High fuel prices have been an obstacle for cruise operators, many of whom have sought alternatives such as more efficient lighting and hull paint to save on costs.

Despite the marked drop in first-quarter profits and weak Caribbean market, Miami-based Royal Caribbean kept its full-year earnings outlook in line with Wall Street estimates.

Carnival’s  John Heald to host ‘Bloggers Cruise
John Heald, senior cruise director for Carnival Cruise Lines, will host the company’s first ‘Bloggers Cruise’ aboard Carnival Freedom in January. The theme sailing springs from the success of Heald’s own blog at www.carnival.com/freedom, which has attracted more than 200,000 visitors since its launch last month. The seven-day Western Caribbean cruise will operate roundtrip from Miami, departing on Jan. 19

Female cruise captain to handle major RCI ship
Royal Caribbean International has named Swedish mariner, Karin Stahre-Janson, captain of Monarch of the Seas, making her the first female captain in the line`s 21-ship fleet and the first woman in the industry to command a major cruise ship.

As the Captain of Monarch of the Seas, Captain Stahre-Janson is responsible for the safe navigation of a ship that is 880 feet long, 106 feet wide, has 14 guest decks and routinely carries 2,400 guests and 850 crew members.

Captain Stahre-Janson recently completed her first tour of duty as captain of the Los Angeles-based ship, which sails three- and four-night cruises to San Diego, Catalina and Ensenada, Mexico. She resumes her command in August.

Prior to joining Royal Caribbean, Captain Stahre-Janson worked for nine years in cargo shipping, primarily on petroleum and chemical tankers, where, ultimately, she served as Chief Officer.

Captain Stahre-Janson has been an officer on Royal Caribbean`s ships since 1997, when she joined the company. Starting out as First Officer on Viking Serenade and Nordic Empress, she became Chief Officer while on Vision of the Seas and continued that role on Radiance of the Seas. Adding still another stripe, she was named Staff Captain on Brilliance of the Seas, and also served in that capacity on Serenade of the Seas and Majesty of the Seas.

"We are tremendously proud and pleased by Captain Stahre-Janson`s promotion," said Adam Goldstein, president of Royal Caribbean International. "This is historic news - for our company and the entire cruise industry - and a tremendous inspiration for women in any line of work, particularly a maritime career."

A lifelong sailor, Captain Stahre-Janson graduated from the Chalmers University of Technology in Sweden with a bachelor`s degree in Nautical Science. She subsequently obtained her Unlimited Masters License enabling her to command virtually any ship of any size.

A native of Stromstad, Sweden, a town on the Nordic country`s west coast, Captain Stahre-Janson learned to sail from her parents at the age of seven in a small boat given to her by her parents. Growing up, she attended sailing camp, taught sailing and competitively raced tall ships.

"I hope my achievements can serve as an example to young women around the world and inspire them to work toward their dreams - no matter how unusual they may be," said Captain Stahre-Janson.

Carnival re-brands its Fantasy class ships

In conjunction with its recently announced $250 million “Evolutions of Fun” ship refurbishment program, Carnival will re-brand its eight Fantasy-class ships by introducing an updated version of each ship’s name as it appears on the vessel’s hull, as well as in various marketing and collateral materials. As each ship goes into drydock for refurbishment, the name ‘Carnival’ and the company’s logo will be combined with the vessel’s name to provide an updated look and feel.

“The names of the majority of Carnival’s ships which entered service starting in the latter 1990’s begin with ‘Carnival,’ and those ships have become synonymous with expansive, high quality amenities and features,” said Bob Dickinson, Carnival president and CEO. “As each of our Fantasy-class ships undergoes transformation to incorporate the wide-ranging enhancements under the ‘Evolutions of Fun’ initiative, it is only fitting that those vessels be re-branded to better align them with our other ships.”

All marketing materials going forward will feature the new ship names Carnival Fantasy, Carnival Ecstasy, Carnival Sensation, Carnival Fascination, Carnival Imagination, Carnival Inspiration, Carnival Paradise and Carnival Elation.

As each ship goes into drydock to receive the “Evolutions of Fun” upgrades, signage on the ships’ bow, stern and upper deck areas will be modified. Among the planned “Evolutions of Fun” enhancements are expansive children’s water parks, a new design style and features for the pool areas, and the creation of the Serenity adults-only deck area.

By 2009, upgrades to the entire Fantasy-class will be completed.

Cruise Pricing Trends Going Back on Even Keel in Caribbean
Caribbean cruise pricing is showing slow improvement, while Alaska pricing is down and Europe remains strongest, according to a report from investment firm AG Edwards.

Leisure analyst Tim Conder, in looking at pricing trends for the third and fourth quarters of 2007, wrote that Caribbean pricing “appears to be stabilizing and continues to slowly improve” and that “pricing for both short and long itineraries appears to be bottoming based on our pricing surveys.”

Mr. Conder noted that the widening price and value of cruises “relative to other land-based vacation alternatives for the consumer is putting a floor under pricing.”

He said that Caribbean cruises occupy 40 percent of Carnival Corp’s and 54 percent of Royal Caribbean’s 2007 capacity; as the industry leader, Carnival’s price stabilization likely bodes well for the rest of the industry in the region, he added.

The report noted that Alaskan pricing continues to be weak, with prices there for Carnival in May and June down approximately 20 percent. Europe remains the strongest geographic market.

Silversea appoints new Australasia PR firm
Karen Christensen, regional director Australia and New Zealand for Silversea Cruises, announced the appointment of Sydney-based Ink Publicity as the company’s new public relations representative.
Ink Publicity is the PR arm of Sue Marsh Ink, a marketing consultancy for luxury tourism products that was established in 1989.

Marsh, who was regional director of the Hong Kong Tourist Association (now Hong Kong Tourism Board) for 18 years, has an impressive client list including The Peninsula Hotels, Lufthansa, Swiss International Air Lines and Switzerland Tourism. Last October she was appointed Australasian representative for Bora Bora Cruises.

Christensen said the appointment of Ink Publicity follows a major expansion of Silversea’s travel agency distribution network on both sides of the Tasman.

In a statement issued today Christensen said she wanted to ‘officially thank and recognise’ former corporate communications adviser Mark Perry for his ‘longstanding work for Silversea’ over the past 10 years