Carnival Net Bookings Rise 17% in January -- Update

   By Tess Stynes 
 

Carnival Corp. (CCL) said January net bookings rose 17% from the year-earlier period at its namesake cruise line, which the company's chief executive attributed to continued product improvements and attractive promotions.

The cruise ship company, which also ooperates the Princess, Cunard and Holland America lines, among others, said net bookings last month rose to more than 565,000 guests at the Carnival line, noting the industry typically sees booking activity increase at this time of year, when many people focus on making vacation plans.

A company spokesman noted the Carnival line is the company's largest brand and includes 24 of Carnival's 101 ships. Net bookings are new reservations minus cancellations.

Carnival President and CEO Gerry Cahill noted Carnival didn't introduce new ships last year, so the bookings growth isn't related to an increase in capacity.

The bookings update comes as the cruise industry has been trying to fight negative publicity, most recently after gastrointestinal illnesses sickened hundreds of people on two cruise ships in the Caribbean last week. One ship was operated by rival Royal Caribbean Cruises Ltd. (RCL); the other was part of Carnival's Princess line.

In recent months, Carnival has introduced a vacation guarantee that provides consumers with the option of ending some voyages early and flying home at Carnival's expense if they are dissatisfied for any reason, within the first 24 hours of the trip.

Carnival in December reported that its fiscal fourth-quarter earnings fell 29% as higher operating costs offset revenue growth.

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