Search Off Radar Cruise News

Can Carnival grow its way out of trouble?


The world's largest cruise group Carnival Corp. is expected to place an order for up to 2 new vessels this summer, which will be due for delivery in 2017.

The likely candidates to receive new tonnage are Princess Cruises and/or Costa Cruises. The forecasted capacity in both cases has been reported to be in the range of 3,600 passengers.

In the case of Princess Cruises, the band is performing well and recently launched its new ship the "Regal Princess", with a capacity of 3,560-passengers.

The Italian outfit Costa Cruises on the other hand is struggling somewhat since the sinking of the Concordia, whereby logically sales have been a challenge. However the 3,724-passenger ship the "Costa Diadema" is set to debut in November 2014 and after a huge restructure under Michael Tamm, better days are envisaged.

Apart from this news other Carnival brands also have new ships on order coming into service in 2016 such as:
  • Carnival Cruise Lines
  • Holland America Line
  • Seabourn
The realistic window of opportunity for placing a new order with a serious shipyard for a 2017 delivery is August 2014, so no doubt we will learn something soon.

One scenario suggested by the Carnival Marketing Department is that Carnival Corp. will potentially order a ship design that could be used across several potential brands, without specifying a specific brand until a later date. Such a situation could save on costs and allow for more time to see how the individual brands are performing.

Meanwhile, competing Cruise Lines with new ships on the books for 2017 include:
  • Royal Caribbean
  • Norwegian Cruise Line
  • MSC Cruises
Either way it does seem like the new CEO Donald understands that new buildings could be the catalyst for growth in the share price, assuming of course he picks the right brand that can fill the ship. 
Related Posts Plugin for WordPress, Blogger...