Cruise ship operator Carnival (CCL) has warned that earnings for 2012-13 are likely to be about 15 per cent lower than previously expected due to rising costs and lacklustre demand. Torrid economic conditions in southern Europe have continued to weigh on Carnival, and revenue from its berths and spending on board its ships is lower than expected, too.
But the group has also been hurt by its own operational problems. In February, the Carnival Triumph ship was left stranded with no hot water in the Gulf of Mexico due to engine failure; a month later the generator on the Carnival Dream conked out and passengers had to be flown home. Recent price-cutting in the US seems down to the need to entice customers following bad publicity and the two events have also pushed up costs.
