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Caribbean remains strong for cruise lines

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Security concerns in Europe appear to steer away demand
In earnings calls for the second quarter, cruise lines say that demand and capacity are holding up, especially as security concerns affect demand for Europe.
Caribbean capacity increases will continue into 2017, Celebrity Cruises confirmed, with the ship Equinox staying year-round in Miami, dropping its Europe program. More vessels from other brands at Royal Caribbean are expected to follow suit as Europe’s perceived geopolitical tensions continue.
“Our Caribbean, Alaska and Bermuda itineraries account for about 50% of our full-year capacity and continue to trend very well,” Jason T Liberty, chief financial officer at Royal Caribbean, said.
“We expect each of these products to generate nice yield improvements this year and also expect to see record yields in Alaska. We are generally seeing solid trends for our entire Caribbean portfolio, which ranges from three-night Bahamas sailings to 14-night southern Caribbean itineraries.”
The president and chief executive of Carnival Corporation, Arnold Donald, also said the Caribbean was proving to be a stable region.
“Bookings in the Caribbean and Alaska for the remainder of the year are very strong for our brands, enabling us to raise our revenue yield expectations and affirming our conviction to deliver over 20% earnings growth this year,” he said.
David Bernstein, Carnival’s chief financial officer, added: “Caribbean occupancy is well-ahead of the prior year at nicely higher prices.”
However, Norwegian Cruise Line’s doubling of Caribbean capacity during the lowest-yielding season did not fully materialise, delivering pricing that was less robust than high expectations, president and CEO Frank del Rio said in a conference call.
Cruise Industry News

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