The Carnival plc (LON: CCL) share price fell 5.1% despite reporting excellent booking data from its subsidiary P&O Cruises about the Wave booking period. The cruise line revealed that P&O Cruises had recorded record-breaking bookings during the Wave period.
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P&O Cruises brands itself as Britain’s biggest cruise line and takes pride in being part of Carnival Plc for the past 20 years. The cruise line revealed that the most popular destination among its customers was the Norwegian fjords, followed by the Caribbean and the Western Mediterranean.
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The cruise line works hard to differentiate itself from P&O Ferries, which offers trips across Europe and is owned by Dubai’s DP World. P&O Cruises insists it is a cruise line, not a ferry like P&O Ferries.
However, investors were primarily unimpressed by the results, maybe because many think that P&O Cruises’ positive performance would not significantly impact Carnival’s overall results, given that the company operates many other cruise line brands.
P&O Cruises has a fleet of seven ships tailored to meet the needs of its different customers. For example, the company has ships tailored to families and others for adults only, meaning they do not have facilities for children.
The cruise line recently welcomed a new ship called Arvia, meaning “from the seashore,”. The ship is innovative and future-focused, boasting the latest evolution in the P&O Cruises experience. It embodies the latest trends in travel, dining and entertainment.
The last significant announcements from Carnival were its annual report at the end of February and a new credit facility arrangement in March. The cruise line group touted the new arrangement as a vote of confidence by the banks in its operations.
However, many are concerned that Carnival has exceptionally high debt levels threatening the firm’s future.
Paul Ludlow, P&O Cruises President, said: “This year's Wave season has surpassed all expectations with record-breaking days throughout the period. It's particularly encouraging to see that guests who are new to cruising are recognising the excellent value for money, fantastic destinations and unique experience on a P&O Cruises holiday.”
*This is not investment advice.
Carnival share price.
The Carnival share price fell 5.09% to trade at 705.2p, from Friday’s closing price of 743.0p.
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