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Carnival Raises Onboard Prices (Will Royal Caribbean Follow?)

April 20, 2022
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Carnival raises onboard prices
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In its most recent earnings call, Carnival Corporation’s CFO David Bernstein announced that the company would be raising prices.

“We have been raising prices onboard,” said CFO David Bernstein on the company’s first-quarter earnings call. “There is strong demand. And obviously, with the environment being what it is, there’s been an opportunity to raise price, and we’ve been capturing that opportunity.”

The increase is partly due to a bump in the popularity of bundled packages, which will include secondary costs such as airfare, pre-cruise hotels, shore excursions, and ship credit. Some all-inclusive bundles include onboard specialty restaurants and, in some cases, alcohol (drink packages). These bundles have proven to be quite popular with cruise line fans (people generally prefer to know how much they’ll be paying for anything upfront).

Of course, everything is more expensive these days, from fuel to food, and businesses are adjusting their prices accordingly.

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“It’s certainly not the first time we’ve seen a dramatic spike in fuel prices,” said Carnival CEO Arnold Donald, who also noted that the company had been doing its best to “maintain price as we said we would,” while also continuing to work to increase its fuel efficiency and further cut its carbon footprint, with a further “10% reduction in unit fuel consumption and 9% reduction in carbon intensity as compared to 2019.”

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