Carnival Signals Caution as More Ships Sail from China
Photo Credit: The Costa Allegra docked in Shanghai. WikiMedia Commons / Mario Biond
Skift Take
As more ships compete for cruisers in China, it’s no surprise that prices are dropping. But as long as returns remain higher than the global average, expect operators to keep flooding the market.
The cruise industry’s favorite new destination is experiencing some growing pains.
Carnival Corp. said it was “cautious” on its outlook for China — though still optimistic for the long term —during its fourth-quarter earnings call Friday.
In 2015, the cruise giant’s capacity in the country increased about 50 percent. Yields, or revenue generated per berth per day, declined “just a little bit” in the market, the company said. An outbreak of Middle East respiratory syndrome, or MERS, also took a toll on travel industries in the region.
With plans to increase capacity in China another 60 percent next year, Carnival expects yields to be down again — though still higher
