Carnival's Q4 Impacted by Higher Advertising Spend, Advance Bookings Show Weakness
Skift Take
Increased advertising, lowering cruise prices and trying to win back the hearts and minds of travel agents have been key to Carnival's brand-rebuilding efforts. Advanced bookings for 2014, even though they are on par with last year's lower pricing, have been sluggish, pointing to the challenges ahead for Carnival.
Turning around a brand is costly -- just ask Carnival Corp.
The cruise giant today reported its fourth quarter earnings, with profits adversely impacted by a 6.5% increase in cruise costs, excluding fuel.
Adverting spend was a drag on earnings. In Carnival's fourth quarter, which ended November 30, selling and administrative expenses, which includes advertising and marketing, rose 15.9% to $532 million.
These higher costs were d
