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Eastern Caribbean has ‘hurricane hangover’ but Carnival calls region as a whole ‘very strong’

From Seatrade Cruise News

Carnival Corp. & plc painted a very strong demand picture for 2018 cruises across all regions but noted bookings for the Eastern Caribbean are slightly behind, citing ‘a bit of a hurricane hangover.’

That set analysts on Thursday’s earnings call buzzing with questions, putting management on the defensive to explain this really goes down to demand for one 2,000-passenger Carnival Cruise Line ship (Carnival Fascination) homeporting in San Juan.

Carnival Corp. president and CEO Arnold Donald said San Juan, specifically, has been ‘a drag compared to the rest of the Caribbean.’

The Western Caribbean, though, is ahead on price and occupancy, even despite a double-digit industry capacity increase there in the back half of the year.

As for the Eastern Caribbean, ‘We’re being patient,’ Donald said, for public perceptions to change, as public relations and marketing efforts chip away at the general media focus on lingering hurricane recovery issues in Puerto Rico.

‘If guests are waiting for better pricing, they’re probably going to be disappointed,’ the Carnival chief said.

Carnival management reiterated that guest feedback about Eastern Caribbean destinations is very positive. (As reported here earlier, ratings for San Juan, St. Maarten and St. Thomas have actually been exceeding pre-hurricane levels.)

‘We’re doing really well in the Caribbean, coming off a record year,’ Donald noted.

‘I don’t want to leave a color on the Eastern Caribbean that it’s bad. It’s not. The Caribbean overall is very strong. Guests are having a fabulous time.’

Any notion that there’s weakness in the Caribbean, he told analysts, is ‘just not true.’

CCL shares were trading at $66.75, off 31 cents, at midday Thursday.

 Posted 22 March 2018

© Copyright 2018 Seatrade UBM (UK) Ltd.

IMAGE: Carnival Cruise Line passengers danced in Old San Juan during a post-hurricanes call last November

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