Carnival Corporation & plc (CCL) 30 Sep 222022 Q3 Earnings call transcript

Good morning. This is Josh Weinstein. Welcome to our third quarter 2022 business update conference call, my first as CEO. I’m joined today telephonically by our Chair, Micky Arison. And with me here in our Miami offices are Chief Financial Officer, David Bernstein; and our Senior Vice President of Investor Relations, Beth Roberts.

note be of forward-looking. please this remarks begin, will call I that our some on Before Therefore, cautionary press statement must in I refer today’s release. you to the

We’ve to Our profitability. closing ground The over to a At internally return XX a XX positive gap same points relentless QX. QX on from business over the trajectory. occupancy shifted service continues reduced stake in to the in than QX. as XXXX has XX% to strong from to in capacity points gap and our from we focus put a in return gone been to approximately the XXXX time, less in has QX in service XX% on to

achieved dollar future adjusted higher over almost XX% in In QX ALBD, in differential And fuel fact, occupancy per down revenue to impact reduced of diem has we constant despite cruise the credits. costs, excluding in the from the month cruise August, QX. in per at $XX $XX of

a $XXX in million to overcoming of generate fuel result, over a prices. EBITDA third quarter, the able adjusted we As doubling near in were

these that be composition while to negative We’ve fleet also expect yield our expect in XXXX. XXXX into expect and strategic to pay favorable in to to revenue EBITDA And time. drive of our overall positive. finish investment increasing second been advertising continue given trends head XXXX, dividends we we half do changes over We making as will slightly the EBITDA fourth up and quarter breakeven seasonality we to revenues

delivery X exiting of ships. efficient better been has large ships the and fleet XX and to Our very efficient ships global of thanks never XX smaller, of less taking positioned,

largest we It is be count years year year, peers. younger the XXXX in While amongst older our nearly XXXX, actually of years. age than average also increasing were we’ll per next all at a ship our our fleet means will public berth be in four XX%, average XX the than

benefits efficiency of to profile experiences associated include revenues. this generate larger richer a X% XX% deliver to remaining more fleet costs, in and expect a with efficiency, platforms and mix We operating overall onboard higher fuel cabin

Carnival launching ROIC Costa We of the top will Costa including pre-COVID, light Cruise have Costa’s operations closure our while announced its allowing line cruise levels, in through we to of initiative durable to transfer there bottom and of expand XX% improve also on ships, begun Line in In drive the China new successful growth. All reducing the by brand presence X Carnival X and XXXX XXXX. from bolstering Carnival innovative itineraries, portfolio brand’s offering. drive our to via address highly previously placed ships our brand continued to are capacity by X be cruise significant and

We to disadvantage from optimize will revenue support over benefit will pause, the twice profitability. there greater to have our during return guests. ahead continue industry-leading strong tailwinds. company opportunities portfolio as from further provide opportunities our the portfolio distinct we again are cash once the benefited drive strong our Throughout scale. occupancy burn, full we will towards march to dedicated loyal And and we even closest of a cruise These decisions while nearly the in was our operations time. brand pause evaluate next size for of the being to fleet and And

day over advertising. pause, you out. two after With experiences XXXX, all guests of probably more building ships, have we word spreading and carried the the are vacation and word third efforts in About the redoubling know, in of as to alone, the guests. the we unparalleled attract leave mouth we that grow And of In historically about quarter. important and word drivers as to quarter carried XX% respect been number of been prior advocates in in new-to-cruise guests of army our capacity beyond, of Now, of twice than the deliver new the back mouth, cruise. we we our to the we of most XXXX new-to-cruise one-third day have just are and

the we’ve efforts, also up On advertising spend XXXX been having our levels quarters. the last ramping in just front, reached two

on channels guests. most had to until reprioritize ago, was fact, a our we of a This XXXX, at and the conscious all to this months two-year efficient period over In was six pause. of like less spent past advertising in than directed decision resources withstand cumulatively more

investment, will and and have new-to-cruise. their target brands been increasing we As consideration those increase actively awareness now advertising our

of While guests, levels. we’re repeat once absolutely XXXX an new-to-cruise have are seen trend still get carrying the of And two-thirds and way them already be to will thrilled board. a we newcomers higher back we improving on in proportion

teams, great a choices, most delivering ships than providing personalized service level are higher all-inclusive beautiful We find on sea. fantastic innovative entertainment anywhere and dining you great onboard land and the experience, vacation a can convenient, and or of amazing itineraries,

to demand is should their comes The or have each can, brand scores the priced understand too Our are with better. traveling today, phenomenal increasing and significant on discount a for should is to to at we not revenue based and delivering we itineraries. land, are be improvement. net promoter commercial case it much begun strengths, a which telling of to way issue we are her I from a XX% exactly and meet capabilities our to Bottom areas us, anywhere product. value. team XX% do and line, president will when profile, generating We his

partners high and new-to-cruise driving more driver efficiently to opportunities, performance key roadmaps continuing to and launching to the audience, interim. strategies the secure to we focus while digital to insights evolving capture has fantastic, trade that learnings areas cross-brand we in aid brand’s advantage generation marketing transparency urgency support all adapt of to to leaders, have successful. tactics at execution bookings operations, their our Improving been brand above. in the them. internal all of using to the perform and sense marketing bookings, and level each organization. need these differentiation all brand at friction have the brand presidents multiple energetic This and a around welcomed agent new brand’s a ensuring while presidents, have of X began, cuts target and channels their these brands sales of that is and demand audience we speaks our below points further renewed effective drive across revenue brand have pause through environment clarity new more continue real. X sessions bolstering actually guests been the segment, an commercial working management brands to bench speaking target relationships, as throughout lead optimal price leadership engagement the travel and sales booking as quickly of The Since characterize And our leaders taking forward be actively our on of to to these creative and target reduce data, another seize and approaches, and to and are of allow We each

made worth the reports women. corporate half dozen with made changes direct last XX to now have I’ve date, that months. in just leadership noting of across X a are I few It’s the my changes Additionally,

talent actively talent and continue management. focused on diversity are inclusion, we’ll and to We and invest in

for significant been targets alongside diversity ago. overall There we’ve lower been sustainability our intensity. probably we’ve board. greater set than carbon carbon the have to be progress our over strides And making decade agenda, and XXXX levels. no footprint peaked than Despite XX% across XXXX our more fits being XX% larger, Now, reducing carbon a than intensity

technology through itinerary and efforts. investing more benefit currently this achieve upgrades and destination the our fleet of rolled out, projects, optimization in port will We focus being even optimization on realizing

recently decarbonization existing three committed silver completed modification. without to to While yet, towards bullet for no excited working solution. are pilots I’m industry To using successful biofuels in there about this our engines is a end, we we

Turning already current it adjusting protocols have currently very we for levels volumes. relaxation And in for tone business. improvement a Pricing considerably our business announcing encouraging higher mid-August, that than at in now FCCs. very XXXX is to seen XXXX, our booking is and the book since meaningful of

are trends. improvement have a At We than higher seen the same running cancellation notable levels. now XXXX considerably in time, we

in priority We move expect of our thanks our continue the a important our new impact of capital flow our structure, bulk to to as significantly operating our program, we always to maintaining this Pre-pandemic, to it we our trends a strong able balance for efforts generated. achieve current our toward build will materialize planned sheet When as profit. substantial the and accelerate have comes investing company while been these cash summer the to make favorable season we has been company. where

time, and making decisions be to strength rigorous committed Going to the flow and repair balance over our using new forward, cash sheet are in disciplined build accordingly. we we’ll

ships annual levels two in order and deviation on in XXXX. for This reduce the years. XXXX one will significantly path on significant set several We to We commitments our not capital us deleveraging. and anticipate have do

more We have and more that more opportunity is emerge the efficient, a as for company the future. sustainable seized energized to

a unmatched industry. brands, well-recognized an fleet, unparalleled and have transformed underpenetrated We of scale portfolio an in

coming have near- We months, occupancy performance. credit path cash over free improvements, our We That while progress measurable by higher will talk maintain specifically growth we’ll high goals our to targets about to opportunity significant investment-grade ratings flow and to optimize drive are returning and and long-term a we our levels our delivering and portfolio so and the profitability, revenue along long-term to now drive In time. historically accountability can strategically track ROIC. opportunity that managing path. accelerate pricing tremendous

the coming continuous all globally, external us talented the team and stakeholders and that get it members has lenders to part. gather throughout pause of shore factors our port we mission call set creating plan of and take resumption to now, are and our would I’ll investors, important happiness partners, We lifting are team communities, for took agent response and the get and our improvement. our to of speak get drive we travel our And the built guests to perspectives use And ship to to agility guests. turn exciting now creativity, that more personally like our to full and operations, by I all David. the in delivering of by to forward, much-needed to strive with Our to and to operations. end over of vacations comes fulfill also as proactively in course, destination to heavy their suppliers, skill now back thanking business dedicated unforgettable innovation up business. the for months the I and, our to

today the business. current guest and provide trends of Thank I’ll a with cruise review tone you, booking start Josh. then and of operations,

Turning to guest cruise operations.

turning EBITDA continued time. Third quarter significant see quarter-over-quarter for the resumption pleased a in the quarter XX% reflecting compared were milestone increased our adjusted first guest represents third quarter sequential to XXXX, improvement. to nearly cruise that XXXX with positive of a revenue XXXX by operations second We

occupancy during was as we four and with called U.S. and experienced the For of month a diems the were had revenue greater third UK are we brands the the XX% increased the with second decreased dollar, and XX%, or cruise participating per Europe. anticipated. stronger the per XXXX, Revenue our the strong third quarter in a a August. the occupancy along onboard third in quarter in third trend note quarter, spending close-in the were and demand future more our by by quarter sales mainly FCC, the increase currency the guests for XX impact from driven Europe the in effect for due increases, third wallet ended the price quarter, high to on continued of a quarter our day more Once XXXX, given We up We XXXX again, encouraged credits, of passenger very XXXX onboard of second other from guests percentage-point Continental versus large presence in third with quarter. significantly activities. quarter pre-cruise by commonly the

to PCD, or XX% over sales activities pre-cruise year-to-date, of as fact, seen compared growth per onboard XXXX. a passenger cruise we on basis have day, In in

the area. this in teams job an Our capitalizing have on opportunity done excellent

offerings As expanded during bundled our accounting package bundled I make comments us indicated new allocations. update, in our last to offerings changes my given to business their we The required popularity. the

as the the ticket impacting other left quarter, the As in comparison less more to and third was onboard, the revenue of the revenue PCD a to allocated quarter in third second for per onboard and result, compared quarter.

to metrics. to reason best another to add list our reasons is judge cruise revenue of the by performance why our way total Just the to reference revenue

versus available per adjusted more XX% was quarter berth XXXX as lower costs quarter our constant it XXXX. in commonly side, fuel for cost the up On without cruise day, currency called, third or is third ALBD,

the quarter-over-quarter compared XXXX, throughout higher of third the driven billion the to ended the sequential a in to We double-digit a low liquidity a to the seen with expect by last expense fourth drive see of advertising $X.X XXXX. year, as of in improvement liquidity, in part continuation and with have essentially quarter XXXX, increase the We for improvement of revenue same quarter. continuation XXXX level costs quarter

In addition, the that I deposits, at and record in of am $X.X long approaching current pleased were $X.X quarter third total both third XXXX. to term, report billion customer quarter billion XXXX,

balance I was of to items. the $X decline offset quarter billion XXXX New bookings sheet-related over to customer wanted investor Furthermore, engagement, historical third most for of XXXX. a the mention deposits, of in couple seasonal which in facilitate

First, let debt-to-capital test. me covenant clarify our

in mid-XXs write-offs calculation at the for to equity in at is using the end the the volatility third add-back debt-to-capital agreements. well percentage within in leaving XXXX. XX% from This eliminates quarter debt-to-capital other adjustments, cruise the allows methodology covenant the of noncash operations, of current set us the limit methodology pause debt the Our which our and guest

will Second, by within listing Investor website. to find so fleet our Financial the we of supplemental provide continue do ships our section the tab debt these a and To to Information in on detailed carnivalcorp.com. website, a Relations quarterly and will refer schedules, brand schedule the of

quarter XXXX current strong all since booking than see quarter a saw of sailings third slowing Booking We protocols not higher to for for quarter Next, the the to great considerably trends third continuation let’s accelerated the land-based tone XXXX during It being look future announcement activity volumes levels see the us booking closed aligning business. volumes gap at despite period. in second second levels. and of and future the a XXXX booking all in booking normally the quarter alternatives. vacation any of the of during mid-August, seasonal third the volumes slower did versus XXXX is booking relaxed towards the sailings the quarter XXXX

sailings, wave by promotions the capitalize ahead in opaque the inventory quarter in only range, to been believe book position the we that fourth with in. we However, the by with nature XXXX. near-term primarily historical lower to quarter we have With limited dynamic our using the increase and while as through third this occupancy in are opaque and current book in booking on for recently. closer resulted drop current given optimize the managing people group sell FCCs. a in quarter in by curve occupancy, XXXX this booking select we protocols Pricing our below we advanced the lower well important was season price quarter our Omicron disruption to fourth percentage-point fourth XXXX of protect restrictive to running are more a volumes environment, effect to are significantly due of cumulative been quarter working respect the impacted situated limited variant compared close-in results Therefore, XXXX. still promotions occupancy in historically part X of patterns. available XXXX to our to than but closer XXXX To book more position booking business. seasonal has levels of in in overall fourth earlier position This until caused It channels very given channels, industry us year cumulative for part to for integrity this left

that year, be the not will this However, case.

decline, compared cabin the in to which quarter gap the in the in represents will third to closing and slightly forward result will step another offset occupancy fourth seasonal build more XXXX quarter continuing higher XXXX. Our occupancy than

considerably full is to the For normalized FCCs. above our for slightly prices position levels year the XXXX, cumulative at historical book advanced and record compared average XXXX higher

less likely than expect the impact While I to XXXX. is for do year be XXXX the FCCs, the on yields an impact X full percentage-point from

we occupancy, of XXXX, in levels historical improvement with XXXX. returning expect during in the occupancy Additionally, summer to

still few While complete, deployment referenced guest a operations in to update cruise options release. are remaining our business essentially our we evaluating is return as

As of somewhere X% expect be capacity for in our X% increase XXXX, we range a to compared to XXXX. result, to the

all Of from ships, from forward XXXX record in to XXXX, a Prices capacity our higher track course, gains with also the our helping business up quarters significantly puts this in XXXX prices. have of XXXX, book fleet benefit summary, year us new strong XX% Josh in of a revenue. to Onboard higher expect XXXX. we for efforts In are nearly mitigate for inflation. of in efficiency that on we to at revenue from considerably optimization looking diems and mentioned per four onboard are earlier,

clearly time. for this sets of the together revenue let’s working stage All brand all And teams Josh call open with operator, for questions. to XXXX, and I with drive the the up positively over growth now

Instructions] [Operator Stifel. Wieczynski question of the ahead. with Please line is go first Our from Steve

welcome guys. to be quarter cash recovery or different I question, third as playing your outlook much some your and Yes. versus And you how guess, Hey, fourth morning. my what Josh first the in from call is in of guys peers EBITDA your Good tone seem the to flow for just a reported terms hearing the of quarter. out we CEO.

does differently still a about brands now ships, you peers? at X portfolio bit right then, this think your And versus meaning struggling point? fair now, your the it very, doing So, assume Princess, at brands very point, this I that non-U.S. guess, to it’s your your are Carnival right well domestic is and but your need do are that that’s Josh, brands, that little issue make you

Yes. welcome. Hey Steve, thanks for the

asked you couple I things. of So, think a

can if hit them see I all. me Let

I’ll our momentum business I great David’s. book I all, showed really Caribbean my at we’ve job. things They weeks, to the us. our I this looking brands, to ramped year. Particularly as European the is good. in are as up The well past peers. promising, wouldn’t the continuing, cruise we’re to of obviously, loud With going this and as which last as American is have speak incredibly at from through So remarks, won’t been speak clear versus can’t line, peers. you the a heard Carnival respect first is has speak prepared as But and through look of North to six done it a over Americas’ how question. and strong,

varying their are they out, can. our how optimize their All their and to and points with of as as source best in target brands respect those their audience to pricing trying play in to markets and and they’re occupancy responding

heard remarks, better. brands think high about of I make we for my you and expectations do can is As our the to we’ve I improvement before, all side. significant talked in prepared what already have revenue on

of some blocking it’s tackling. And and

envelope feel to Princess. significant. it’s to are things, big, think in Some I -- type And managed lead appropriate that is Costa, get some to are pushing some Holland pretty improvement. in to that been into ultimately of brands but I’ve And don’t It’s areas. forum this hit activities America tracking I of setting. And are and certain we confident really the significant far. the it X going of so really that underway are I actually specifics, in hundreds small, any

there this for at XXXX And good ‘XX past, about at was you in around understand aren’t to we’ve And XXXX management heard very second But EBITDA, look, give high a that XXXX. it the Carnival, kind point. guidance chance the be Josh. you. Got Thanks that I guys Okay. level, would exceed there question was of EBITDA. to for color, going previous chance a at talked a

do call? hey, you view at Josh, it’s Is that how possible, you something the what now too from this make look, So and saying, can that early today? see you that’s still are or helm, probability you’re just to

Well, we’re XXXX. in certainly anticipating strong EBITDA

providing We’re not obviously. guidance,

and that can. hard how are that I of much to have obviously are don’t in we’re process. swing, Fuel as in we get currency to but I XXXX. see So generate and we’ll no working want plays ahead a idea, we where as big out

is question Please Citi. from with James go of Hardiman the Next line ahead.

Josh, welcome aboard.

curious, seen discussion there’s restrictions. of have that particularly obviously, some per know the context don’t the word booking of a I relaxation diem COVID the the So on lot the we of in -- guess, that right about impact surge I what, this pricing, if since I’m if you’ve is any, is having decline. of

the about look meaningfully. it’s XXXX pricing it’s think X% But as to we then I for versus like year, quarter. third the seems next up

trying off maybe paint just dots those the is improvement us. restriction significant I’m that piece But relaxations. of maybe and missing these connect a so, sort And to coming two picture for of

to on XXXX incredibly But the So business I yes, was price can’t speak the encouraging. you books the it the last our actually few specifically over weeks. overall earlier can volumes than today that the have tell is higher in pricing been I of for year.

think we what’s as driving that. opens to able that friction reduces driving that more that, lot there’s to think a demand brands. far As are alternatives aligned be and our land-based of the do and fact a I more that lot to us are I of up things now

of strategy, and more and is have, we to starting efficient sailing that again that, addition dividends. strength going we heard channels. us more way advertising But and loyal in how prioritize pre-pandemic, we the a of and was and versus those people as as process mention different our that, and scaled advertising. heard, in what guests great back full we’ve telling product, context on You and of that And our it’s to were in have -- back a we And advertising helping. resources we we really doing with been to norm focus more the our folks and wanted are had in all it pause up pay doing we the ramping back. approach to We you

the think wish do you they can’t and I that. I be pricing, give lying. but I I’d tell you I -- could be anybody impact scientific don’t how all the can So, and drivers

have can. not what’s to see and what just leverage what’s we see and we’ll working So,

clearly, were advertising And let also, quarter, increase was When we at remember, the expense add. we season quarter. where situation fourth our the just you’re the in until impacted. a me in wave looking start third And didn’t

that, So addressing mentioned in that as per we impacted that the talked clearly But as diems about, the we third forward. revenue Josh quarter. too, are you move

then of a question, figure weaknesses well, sort whether open-ended know a maybe dice you’ve or through it, how challenges to question. I’m out it’s of -- Josh, your curious us a of customers, I you much And Carnival-specific. and industry cruise opportunities you’ve us slice an is had strength is brands, don’t that facing think I’m mix two. or take of sort how of the guess second it’s I want wherever trying bit of mix my chance And some the you maybe specific -- what -- and set your could of but geography, the take versus think But been and those through to opportunities you since if at help it. Got to helm, of the challenges Company.

I’d of I I the when comes think of all alternatives. up are too good versus overall, us industry, Well, say, non-cruise of it on behalf a stacking value us to way can say

why them serve I we that with help and how industry agent side be I really our and And and I think I’m all closed first who doors. think varies brand-by-brand, daunting, brands, I they dividends it so, once cruising, the could know, they that with partners a story very so can behind will on committed That’s big seeing get travel tell dividends. and can be is product our to think do that things as to confusing communicate are they’re and they because commercial inclusive I we in are, our don’t we how pay but how to I what convince able break you through us of can the peers our success speak them, it way. they critical the all an we’re get and it don’t back. be, I and good being timers to because specific in for want going a of could for us know that to to board come the can’t in more do -- think on do corporation,

Farley. from question line of Next the Robin

like years language So seems you language than of more we you’ve looking of it more the being typically be but higher, X%, considerably should probably over that’s use. range? than think just considerably or kind different for describe XX% say higher is to you bookings. at a more would the that used When that forward as upbeat It adjective than

Hi. This that were we preparations was Josh. when used for a when provided to everybody David Treasurer. have these back dictionary is I I doing a

I think, it’s mid-single is safe to digits. say this

And I answer. your -- there’s can so I guess

No, higher previous. the mentioned? maybe a half things? expense is also and And seems like Great. release, there sort nonfuel expense, have quite advertising that second that’s of you’ve a very about with seems -- follow-up to the I the nonfuel then happening And nonfuel Are just what’s just digesting we’re expense. helpful. even frame on but the for Is it than other Thanks. advertising, bit still the it guidance but it like your

Sure.

you something get and the what digits. in actually with it mid- you said quarter, digits before. And we the the you all average quarters weight per take if about had to So, high-double said we mid-double ALBDs

or previously the So, point change of full like potentially what tad that a we from more But had said a year from something advertising anticipated. guidance. expense before, higher it’s just as a maybe we previous a basis not a it than on is result significant

up. talked the then this Okay. are things you just then, about about on kind being and you’ve just piece, in of ramping And ‘XX, talked it’s -- advertising and ahead volume how sequentially in price

it naturally on I So its about guess, demand like just thinking growing so seems is own. --

just know European when about Thanks. I So, if on how think help and why of a that’s it’s to such advertising. about I that. demand targeted price seeing kind certain decision in of or strong -- think volume do more I guess, to issue, sort don’t the us And know you’re naturally

Yes.

get volume to we things. the plus ships good So, a volume, at pricing. have want is we price of couple and fill One but

So, not we in to groundwork for have European the ultimately, about filling to the more a And this context the next just doing of for thinking is next X.X be decision. remember, the awareness quarter. not the be making moment It’s and we American for the the ship fact bookings And the that. consideration, next that booking versus in accomplish need that not just quarter. phenomenon. to years, -- we’re and taking we just It’s setting advertising

that’s need huge it about particularly to be to this we where we’re that. goal -- building successful a amount we’ve had all been our up for as thoughtful. a So, since makes years well very it be setting ourselves wave. wave, of is real new-to-cruise, the And and inroads, really has toward point And

think a we achieve. actually want lot so out the of And and what I to organization our excitement game in plans because are there’s know we

Thank helpful. That’s you. Okay.

So think higher like the would the sort way about pre-pandemic. not it than versus right what that typically it’s it? Is to advertising, but sounds you of thought, what originally up you do

that say I No, yet, actually. wouldn’t

to We’re those levels. back up

We have capacity more to sail.

with and a -- So now. our and always lot brands to the of we’ll in all equation, efficiencies. our pluses naturally, find try working through should XXXX we’re plan that But minuses of there’s

months. So, about shape how a exactly to that’s few have up in going more insight

But increase it’s it in we advertising And had first I you four we fair of XXXX. think overall about we -- it half. I doing higher was weren’t half to in once had that said the remember, say be to the quarters, look in the if much expect did before back advertising the that than talked And did year. at we

higher big season. -- normal even what wave is anticipation your versus in a than would quarter So, of the this fourth half that year in in we of level the you’ll XXXX, see back ramp-up the see

from Jamie question next Our of with Please the Morningstar. go line Katz ahead.

I’m can you when work guys digesting sort through through might hoping through is help of may think think the of magnitude what us left be be, and FCC we those. to you

I you’ll think than my to And indicated And I talking impact end it’s I prepared sweeteners in that think In forecast see it XXXX, given be FCC’s had an think expect our less couple XXXX. and that the that I but So, of in did FCC seen you’ll see points a of the remarks would about. with yields see that X%. expectation. you’re impact XXXX, we had we

then, the release. in noteworthy, on in in capital or were there And the spending different a Is programs shifts spending Excellent. I press perspective, shifted anything mentioning that? some Thanks. like expenses worth there table anything have from think that

in The making CapEx. reduction the will mind you’re And that foreign of in the is that at Well, we’ve a the of lot lot CapEx, carefully that particular a just currency. in newbuild depending the CapEx, CapEx optimize been looking in a and with keep on very non-newbuild Yes. see particularly currency, item those sure at, foreign looking which newbuilds, changes the you we numbers.

you relooking we decline So guidance. previous did And are at see a the XXXX XXXX. from in

we’re As Josh operating had going said, XXXX. that through to with for the going all be plans companies

CapEx optimizing talk point this to them at made time, we about changes, at So any look haven’t continue that to we in for XXXX. but and will

Ben Chaiken with question line of ahead. Next go Please Credit from Suisse. the

Sorry missed I if it.

that it -- the FYXX, that’s on I Thanks. change, help total Maybe the simplistically, just mistaken. think mean, the maybe you since and update sounded language position I’m update. relative can ‘XX? accelerated a with booked relative like I bookings us position surrounding FYXX last guess, how ‘XX little sounds for the since to in changed slightly. last bookings changed vertical I to the vaccine but the have unclear It booked ‘XX

Sure.

an we’re mind And of accelerated. patterns, protocols. mid-August about position in acceleration the or indicated, So, relaxed the book the of what we booking the keep that terms in as talking in occurred bookings that here with

few In our were XX% the North XXXX weeks. American last fact, in up over brands

book closing was we the end have higher the previously range. now quarter, the at XXXX levels, But historical the Earlier gap and below said had have tremendous. the patterns booking it’s position, So, average. the we’re slightly at levels. of were now, exceeded in we the we been And saying but XXXX

earlier protocols relaxed exceeding and year, the XXXX feel good feel book now particularly in are So, about But were perspective, from very very levels. about we good we we overall as we with and better well. a priced that than pricing the position,

like terms European movement? itineraries up a bookings a of in know Okay. non-European is difference there That’s able little sounds -- that there are and bit position. -- I driving deceleration for you few to so is of a -- between helpful. it then ‘XX that in And times, Is break a

Yes. that below seen it getting relaxation But most level slightly were we accelerate and XXXX of the quarter, deceleration that, have in since of levels effect. the for protocols XXXX. booking of the during we while protocols, bookings, a the were for wouldn’t I that have a called things considerably. Remember period. the still had And we as result

seen mind we we to other booking The much thing closer seen previously in that have curve than is historically. had keep in a

testing has relaxed so us gone, up the XXXX that. shape. before, with we North impacted line, And I that, in with too, our the protocols the few I well. putting brands XXXX said of more requirements last great we’re great relaxation and But we’re as XX% now, the mean, about since and in in And the probably American over levels, weeks were protocols, feel as

XXXX. forward So, we’re to looking

our brands And well, a They’re window. doing European closer too. in booking just in operating are

have seen as mid-August, for a significant they again, same off. just well. It’s it in and thing, So, spike more period. But a took closer

like of we’re ballpark low underlying ramp-up, protocol in just Okay. cetera? Can It just core sounds more help fleet et maybe exiting splits. this ‘XX how costs costs. range of directionally, how Just then, and much related, you on And versus the is year. double-digit one are that COVID maybe the us, much like that

first of me data. forward -- a of looking all, So, is fourth great just I well, think for the let don’t say indication fourth that quarter quarter, the

a the probably year, the do most you’re quarter, But can But be of From said protocol tens going costs $X fuel, you get and time costs. the we of but quarter. By our fourth there that about most included the better, ships were we costs probably talking adjusted to those in looking spending the at on in of a brands. month there’s to earlier the are $X.XX we’re having protocol of I probably was -- dollars and the conversations are costs. start-up of millions think embedded in before little to forecast. had cruise in of fourth bit there I maybe costs, spent with quarter, without that fourth you’re when

-- So, spend there not even double-digit sure going is it said, low brands projection. And have much, the included. something like digit that double that’s to that is maybe I but what which is, But affecting $X $X.XX. I’m we’re or

time relaxation the the prepared forecast, same about that we’re protocols. of as Given at the

but up? just -- XQ use. good period a I not is like point, said call Why the belabor to of Not to why XQ is not you think kind

Yes.

year you I a mind, full think when as Keep one you things in look at an example I’ll give all different over period. -- the example. just

said quarter And things who indicated, a cost about at the reflection always advertising question I versus that XXXX. I quarter the that by Robin because the I up by I’ve of year considerably asking not good it So looking and just was was said fourth think are advertising, quarter. in vary was

on have So, just you number. your if impact take would an that alone, double-digit had item that

of indication is of quarter ever year one no a the so, And quarter. seasonality of full the spending because be by the good to going

the ahead. from Jefferies. of with question David go next Please Katz Our line

of proposition do you price value I that you hospitality proposition context the your is pricing driving and the I doing? within your from wanted different we and that. do? What recognize about you ability that in But value thoughts of look can the now? other are What what of just context the have price, to model drive to thoughts on get are areas strategy the sort at

how targeting performance it Are they right I opaque turn to cycle, choose they been far them I speak I It’s to really pricing with the company. question. how clearly being life we time, communicate, -- we use And various at all of I a there of that folks? perspective, can way? for them into And are do the our how promotions focused There’s who mean, the been it’s start the it’s is, Yes, have it’s having commercial people so, it’s marketing that effective right? agenda to Do discussions do in us. speaking outside brands they right from so right? our whole then we mean, good way space. mean, lot has have with it’s able right I conversion? revenue the the opportunities digital are marketing a mean, that management, a does to things commercial right right? answers, brand we the leads and they and it’s generate that just whole literally the teams can’t we And are the the at curves, it. introduced on our channels.

of have in by opportunity significant improvement amount to good profile we us, varying For in revenue whole aspects a our of making improvements drive that cycle.

clear -- largely the the of I they or on there. Are just further point? another off I out off table, categorically can this about those matter, And any that. maybes the appreciate I table? of sort want be at possibility are raising just Are to those capital

opportunistic. try to look as and needs market. capital refinance opportunistic. We do billion We did solid see look billion make look we should we’ll six all We’ve sure So, look are have -- to the the we quarter that. a we evaluate the at do we we $X.X back, to and next maturities and longer And what position. March, opportunities, to remain term than next always XXXX. in or rather in just at perspective, what that We in that through of always at months. good, were we always But a capital at will we looking options are of from looking it $X indicate I we think worked was we

this I point the can at it’s answer best in give So, time.

line the ahead. go of Naqvi with question Next HSBC. Ali Please from

of should mainly on commentaries in due you volumes? that QX regarding future it Thank basis credits And the trends. like-for-like there’s and as on said, some suggest cruise on commentary any your Just a is or to, any Could of you demand you. closer consumer of any maybe bookings? sort your comments us the is weakness give

-- was in is we far So see had expect a fully indicated I’m of one that to my I I talking question, you QX. not the remarks, about prepared your slightly QX were we but as occupancy. things And increased understood did sure concerned, as

the XXXX, we we is those third quarter keep from occupancy Northern board. pretty in and percentage-point strong went drop if kids I fourth, summer is of saw which for in Hemisphere, to Now, the all a third have because to mind, typical season seasonally on back X quarter the

we a in normal. So, quarter. drop is year fourth the occupancy aren’t in But, in drop a pretty occupancy expecting this

the result of an that expecting We’re expecting. that’s a cabin and in we occupancy increase occupancy, are build

we’re your good think question. moving quarter. we’re right in for Hopefully, I shape If not... direction. answers And fourth in So, that the the

were. have The the in respect great the those of our adapting change left and the at things job the where started window. I put a in year, brands points to through closer a about a our a of tactics the think you had benefit We doing hole the us have there’s other as well. news spend all with beginning maybe advertising things because changes, QX booking we the in we having there gone didn’t a the All heard out in we to of of that of Yes, good couple us wave beginning talking protocol to the been year. successful is

closer on you so, brands a times, we’ve is probably optimizing of it the couple also that of job QX demand we’re in the basis. are said by are good And now, volume as bookings is in the in seeing getting and well. for a it just a certainly because as we And benefit heard not doing XXXX, shorter-term

benefit And of impact after the impact hurricane season it. Got sort and is had sort the experience, of that, your what you maybe of just please. the from with to wave the

the of impact hurricane... The

On wave season.

our for said thoughts and don’t as season. wave to see and extend we of deepest our affected significant these Corporation, significant that Ian I At would coming point both anybody at first Fiona, all this business. any time, those of With with Carnival on Hurricane we in don’t prayers on release, on impacted. concern out like type and anything impact hurricanes upcoming have to the impact, behalf all, of our respect current anticipate anything who’s press would so of our by the Well, in been we are

disruption, Ian. Yes. of clearly, cruises. a of probably And But impact had point an a than the couple hurricanes, I of hurricanes, million right the for year, is normal $XX and we in if impact and both in remember, these $XX always time, way, because impact less on million. estimate But at two canceled there’s impact probably have to Fiona now than some from probably this from us have the -- by the less

ahead. the question Please Brandt from Montour line go of with next Our Barclays.

booking against of of guys impacting just as I issues your wanted out pricing. you’re the the historical into about put right specifically of rate more ‘XX and ahead ‘XX. or And run about volumes of current So, right, the quarter that are having for to context, length the volumes window are booking is called for average booking of at ‘XX, maybe a lengths now time current you you’re pricing ‘XX, talk ahead well with -- bit which little ahead current that looking historical ‘XX, sort of that you of

from their normal out people versus a you to year would a for And turning besides so, else Like, guess, are of out booking except not that why into length averaging in position else history. be maybe the events, trying all what, you sort derail calendar could of future? normal telling year, like the figure when just add the up, exogenous -- I I’m that what

we we Yes. positive were question. I about what trajectory I think That’s how XXXX to it a already about to positioned. how points are is the and good express trying mean,

to can year. everything So, we’re fantastic to make a ‘XX do going we

got far, we’ve which to upon a it. base so good do And

ramping back XXXX. be, been months, that doing that we hadn’t to whatever the in ramping things a We’re few goal in the might smash actions. And depending our up few things, years, it is past on

in revenues. I is also that a up us And our the as been notes, year diems onboard only that for thing on I’ll add record in have my per for ‘XX. track significantly to in onboard puts said XXXX And revenue

backs. onboard our is we more our leveraging Yes. at which more wind And presales of keep spending, and

We have a richer cabin mix, as we talked about.

things to deliver. success quite us So, thought for a that need set we that there few up are we

dynamic how which the whole kind pricing And ask my as essentially might than completely prices, elevated, after as effect is prices be the there think for more sort about this could question if activity headline of over the easier like this I to promo, at I about think off. capacity year, more just easier It where when would to quarters it doubled activity? guess, year it it by be we several net overnight earlier industry and elevated raising an a was of and headline or off feels be But lift pricing expected could just about question perceive versus peeling be exercise the industry prices its is, to you that of least, next was maybe promotional but promotional I some next year.

Look, Yes. use our via opaque that promotions such. there’s of channels, levers brands lots via and

can goal, which right, same as the in high as have much event, is We any revenue we can. as and to price generate as a we

so, at going look And a how level. we’ve we’re your best perform this versus opportunity to do what you year our done year, to we’re at high next there’s to point, when and tackling

guys. Thanks,

Thanks, Brandt.

for think and the joining listening. you, I today. I everybody, think, thank for time we But, that’s calls all have operator,

indicated, all we as we feel considerably our up XXXX. with about and Yes. No, much, good everybody. on other things higher And very thank forward said, to XXXX, working you pricing look we with Josh. being books the very

have and great afternoon. thanks, a So,

to please That and disconnect lines. your concludes your thank participation, We ask today’s call. for you you