Cruise bookings are on fire -- and it's pushing up prices
We knew cruisers would be eager to get back to cruising when ships finally started sailing again. And now there's proof.
The world's largest cruise company, Carnival Corp., said on Thursday bookings for upcoming cruises soared by 45% during March, April and May as compared to the three previous months as cruisers raced to grab cabins on newly announced sailings for the summer and beyond.
That's on top of a 90% increase in bookings for future cruises during the three previous months as compared to the three months before that.
The numbers were revealed as part of Carnival Corp.'s earnings report for the just-ended second quarter. With very few ships sailing during the quarter, the company posted a $2 billion loss -- one of its biggest quarterly losses in history.
"This is a clear demonstration of the pent-up demand for cruises as well as the long-term potential for the market," Carnival Corp. CFO David Bernstein said of the surge in bookings during a conference call with Wall Street analysts on Thursday.
Carnival Corp. is the parent company of Carnival Cruise Line, Princess Cruises, Holland America, Seabourn and five other brands that together account for nearly half of all cruises taken worldwide. It's considered a bellwether for the entire industry.
Bernstein on Thursday said the jump in bookings during the second quarter was driven both by close-in bookings for soon-to-depart sailings as well as strong bookings for trips in 2022.
He described the booking volumes as "very strong" and noted the company's overall booking picture for the coming year is now looking better even than in 2019 -- the last normal year before COVID-19 hit.
"Our cumulative advance booked position for the full year 2022 is ahead of a very strong 2019, which was at the high-end of the historical range," he said.
Bernstein noted that the strong bookings were coming in despite minimal advertising and promotional activity in recent months as the line's operations remained mostly shut down.
And the strong bookings are leading to something that might upset some cruisers: Higher prices.
With demand for cruises so strong, Carnival Corp. brands have been able to hold the line on pricing and even raise pricing in some situations, Bernstein said.
"Pricing on our full-year 2022 booked position is higher than pricing on bookings at the same time for 2019 sailings," he noted.
"This is a great achievement given pricing on bookings for 2019 sailings is a tough comparison, as it was a high watermark for historical [pricing] yields."
All nine of Carnival Corp.'s brands halted departures in March 2020 after the COVID-19 outbreak was declared a pandemic and many of them have not operated a single voyage for 15 months. But with COVID-19 vaccination rates growing and case counts falling in many countries, and many destinations lifting travel restrictions, many of Carnival Corp.'s brands are in the midst of resuming departures.
As of Thursday, Carnival Corp.'s nine brands together had just five of their 90 ships operating with paying passengers in various parts of the world. But that number is expected to grow to 42 ships by the end of November as more vessels come back online, the company said.
Carnival Corp. CEO Arnold Donald said during the conference call that the company hoped to have all of its ships back in operation by the summer of 2022.
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- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.