Carnival Says China Is a Good Long-Term Cruise Bet Despite Ongoing Struggles
Photo Credit: Sapphire Princess is shown in China. Parent company Carnival Corp. said business in China is still struggling, but prospects for the long term are good. Carnival Corp.
Skift Take
Carnival Corp. reminds us that China is a small part of its business — which is true. But if the market is going to become the world's largest as the company expects, there are a lot of complications to work through.
The China cruise market continued to disappoint Carnival Corporation in the second fiscal quarter, but the operator isn't giving up.
While the company has decided to scale back its presence in China slightly in 2018 after big increases in the last couple of years, CEO Arnold Donald told analysts Thursday during an earnings call that he expects more ships to head to the region in the coming years.
"China, long term, is going to be a huge market," he said — though it remains a small part of the company's business.
And for now, it's a drag.
Ticket prices were up in the Caribbean and Europe for the quarter that ended May 31, but China cruises saw a decrease, chief financial officer David Bernstein said.
That was hardly a surprise. Industry capacity has seen big growth over the last few years in China, and that has put a pressure on the prices sailings can com
