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Royal Caribbean vs Carnival Cruise Lines

Title:

Royal Caribbean vs Carnival Cruise Lines

Published: Mon, 12 Jan 2009

Description: Cruise line rivalry surviving the economy?

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Automatically Generated Transcript (may not be 100% accurate)

" As lord now going to want to talk a little bit about the cruise industry here is doing anything but selling these days some cruise -- to slash prices low -- 45 dollars. And these kids that process analysts up from Susquehanna financial -- say. While cruise bookings fell nearly 11% in November from 2007. Industry leaders world Caribbean and Carnival have made a positive rating. But when it comes to competing oil riveting Carnival are the biggest -- The Nazis. Carnival Cruise Lines and royal Caribbean. One as the tuna salad of the waterways the other lobster Neuberger high -- vacations. 1977 launch of the -- boat took the cruise industry from the stopping. To the mainstream. What ensued was an intense rivalry on the high seas not scenes and."

" Royal -- business itself as a sophisticated product. Good taste -- shifting toward the harmful focused on low fares for middle class clientele. The marketing battle became so fierce legend has it was two ships for passage of or CI cruise directors you fire this proved itself well across -- pulls back. There goes that keep more of the Caribbean full speed ahead in 1988. Royal Caribbean launches to 880. Foot long. First ever major cruise ship called suffered of the seats -- the two years later Carnival counterpunch with another 70000. Ton -- The fantasy yeah -- became better now. Six Carnival destiny which featured with the largest casino succeed. He had done it Marciano and they'll get 3100 passenger voyager of the -- Exclusive ice skating. Basketball court and rock climbing wall. He's on heavyweights also battled over where the fun. We've lost. Our CI ticket's message to TV scoring big in 2000 that the world. There ad campaign featuring Iggy pop's most polite. That's his dad's targeted adventurous souls looking that scale rocked wall. -- Carnival unveiled its biggest media by -- introducing the slogan. A million ways to have bluntly even Bobby -- singing somewhere by the city. --"

" Intense this -- righting the ship the bad economy is proving to be the tallest tales in front. Here's why. A thousand shares of Carnival in January 5 1999. -- 46060. Dollars. Today the shares are down almost 50%. 45080. Dollars -- that same -- 1999. 1000 shares of wolf -- would -- 36000 at sixty dollars ten years later. 15180. Both these cruise lines offer fun fun fun on board but really how much fun -- who's going."

" All right let's head -- over to Charles now for a little bit more on this robbery Charles. They talk Connell on dog by Chris Bain president of HRG affiliates and cheeky Fitzgerald. A leisure travel analyst and CEO solutions group she's in Tampa. And -- I'd like to start with you. Talk to us about how intense this rivalry is."

" Well Charles it's interesting I was gathering over the weekend and the input from my industry colleagues and those that are are CL stands as they talk about Carnival have just -- direct incentive disdain. And it did you think of the Carnival folk are much more focused on themselves but I think it's easier to do that we hear in the number one position in this far ahead of our -- CIA as they are."

" So Chris. This this robbery here word you see it going. Means you know taking -- and a Carnival so far ahead is that just simply a function of them out executing them or because the overall economy just happens to be. Perfect for the business model. What -- it's really have to do with with the Carnival -- Companies verses you are -- were Caribbean international companies. -- able to take you really from birth to death. And that you can start with Carnival and as you are. Acquire wealth. Moving to Holland America princess and then as you become -- should you become very wealthy move into either -- or she would. Are Shiite the other hand it does not have that that the hot all the various brands in between it was really good amount of consolidation. So ticket -- agree -- do you think that it's a matter of one company just having a better platform or the smart -- play a role this."

" What Charles I -- the very wealthy comment by Chris thanks so much could he -- is actually my favorite. Of -- brands. I'm not at all and in positioning and and really the experience. It is is what Carnival battles as their reputation is that the I think in your -- that that the -- versus. You know the the upscale dining experience then my husband a pilot -- camp and we. Actually have gone on Carnival a number of times and we have found the -- even on the fun ship. To have the upscale experience I think is as people are tightening their belts and staying closer to home. They're going to find out that you can get. A lot of the same kind of characteristics without the big price -- up front and and again I haven't seen that same. Approach on on -- CL they're they're very very focused on you know this recent campaign much more hip than -- why not. And I think Carnival just you know this whole fund campaign that this recent ad agency. -- that they've been doing on the largest Kenyatta in the world on the lot largest beach ball really just says on and I think that even people who would normally go upscale. Might give them a try."

" Chris the industry these two guys have pushed each other through the -- they keep one upmanship and each other. Every other industry in America certain downsize here to use that word -- first of all do you see them still being able to. You know leaping over each other -- bigger larger ship do you think they'll start to bring it down a little bit -- all how to overall economy and effectiveness."

" What Charles first of all you when you commit to buying and building a ship that's a multi year project. So they're already committed to acquiring her having to shift come into both of their fleets this year. The industry in total will grow about 7% in terms -- new -- I don't see them pulling back or selling off ships for two reasons one. Only about 17% of Americans have crews it's still a great value. If you're going even in this economy if if particularly in this economy -- you're going to go on a cruise you ought to do it before may. -- prices are down 25 to 30% you have lower airfares going on right now. -- so. They're taking it used to take advantage of his time doing is is really really right now."

" Okay well thanks -- risen Cherokee. Maybe you can score me some Super Bowl tickets. I -- this show absolutely. Our right coming -- newspaper."

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