Carnival’s Q4 Impacted by Higher Advertising Spend, Advance Bookings Show Weakness
Photo Credit: Arnold Donald of Carnival Corp is the new CEO in the post-Triumph, post-Micky Arison-as-CEO era. He faces the issues rehabilitating its image and getting customers and travel agents back on its side. Miami Herald/MCT / C.W. Griffin
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
