Carnival Cruise Passengers Are Partying Harder on Board
(Bloomberg) -- Carnival Corp. cruises appear to be getting boozier in the pandemic era.
Passengers are spending proportionally more on alcohol, gambling, spa treatments and other onboard purchases, executives said on the company’s latest earnings call. That’s bolstered Carnival’s nonticket revenue per guest even as voyages and capacity remain limited due to the coronavirus.
Onboard revenue has been a source of growth for cruise lines for several years, but the pandemic era has seen that spending increase in importance. Investors will be watching to see if the jump in that business is sustainable.
Carnival, whose namesake line has been marketed as the “Fun Ships,” attributes the increase in part to bundled packages like drink plans that are purchased when trips are booked. Many passengers are also flush with credits accumulated from canceled cruises during the Covid-19 pandemic, when the industry was completely sidelined for more than a year.
The packages, including ones for internet access, allow guests to be more free spending once they get on board, Chief Financial Officer David Bernstein said on a Sept. 24 earnings call.
“When the people get onboard, they really have a fresh wallet,” he said. “It does incentivize more onboard spend in total.”
©2021 Bloomberg L.P.