Carnival Corporation & plc (CCL) 30 Sep 242024 Q3 Earnings call transcript

Greetings, and welcome to the Carnival Corporation & plc Third Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the call over to your host, Beth Roberts, Senior Vice President, Investor Relations. Thank you.

You may begin.

you. Thank welcome quarter and call. earnings our to morning, XXXX third conference Good joined Josh and David Arison. CEO, by our our Micky I'm our Officer, Weinstein; today Chief Financial Chair, Bernstein;

on that will I you All to in of note references forward-looking. statement refer please forward-looking press begin, will be we constant yields our Before to remarks today's this the to call Therefore, some release. net costs net without be be in prices, per a cruise fuel References stated. and adjusted net currency yields per basis. otherwise and will diems, on diems ticket unless will

also cruise an of may which comments basis, fuel, Our all cash on be stated. reference adjusted EBITDA, free net income, will ROIC, unless without and flow otherwise costs

in to measures contained a presentation. our earnings our and references investor our and these are presentation associated press All press press release corporate the release website GAAP our financial directly in be defined reconciliation comparable and U.S. found. other our earnings can also disclosures investor are non-GAAP in measures earnings visit most release, Please where financial

the With over I'd turn call to like to Josh. that,

Thanks, Beth.

past Before I to express this for all my like those impacted begin, Hurricane Helene and heartfelt by support I'd sympathy week.

that, prayers I'll and you. to are thoughts remarks. with our prepared Our turn With

of XXXX an end We've year, we report of even the well XXXX. unprecedented also September to comes As built to start an for am expectations. base I we're delivering stronger excess and business and in happy closed off out to that are an XXXX, we to

was outperforming quarter records every all measure. and accounts third multiple breaking by Our phenomenal, on

XX%, it were the not Record million These resulted the million our delivered prior, last by guidance, achieving capacity of than ROIC end quarter. billion major And of billion, $X billion, brands, year not and than same-ship growth. more unit up almost double-digit we third year we've last $XXX and of seen $X on basis over to operating high all-time driven $X.X years. an across income growth high-margin year's XX% all and XX% levels income level. driven record exceeded a in improvements hit net respectively in and as XX more EBITDA by over over $XXX Revenue EBITDA the yield a last of

our demand us to time above with our XX.X%, at on already with to revenue guidance to double the ROIC year line of which yield enabled Strong efficiency, historical almost billion, around to EBITDA poised we record December. XX% ending and this drive guidance $XXX increase X.X than to we the original cost enabled also full revenue our and emphasis in And original better bottom third improved is points $X for on our December deliver ticket consistent of us almost year. guidance, peak the XXXX guidance set our million end year's point. the $XXX expected were above books our last million prior the more year

deployments at higher in our are we throughout Every a forward, generation in portfolio. actively on both the prices well is year. demonstrating than optimized core price. and historical momentum curve point occupancy high XXXX at as continues this at is Looking the demand All time, manage XXXX, in the ongoing demand efforts of booked higher prior portfolio our our benefit brand the pricing

occupancy. strategy to thanks well, baseloading pulled take work having Our continuing price, is to us allowing to on ahead

XXXX half price actually last for And has feel each the XXXX booked positions year widened in year we maintaining versus nearly months, booked, X of advantage for with confident quarter trajectory. and the full fact, in already In individually. last our our

drove onboard position in record purchases in This for at XXXX quarter as for $X of strong is XXXX performance last incredibly customer our sailings along that's continued record just we RF. carrying days, with volumes booking pre-cruise early and nicely months the growth billion, revenue. deposits third benefit the of book While achieved enhanced X XXXX, towards and into XXXX commercial

gratifying this spending to again also note It's that onboard only up levels not quarter. were strong

online actually all move in in prior demand much Our this North quarter. Princess, few from introduction year. onboard the continuing ship, in premier the will the of accelerated ship have the Sun a second direction. to essence, sister more This the are followed In pipeline Princess just redeems indicators the next-generation the American her Star by we highly in including successful And in of momentum, Princess to weeks. year-over-year sustain be improvement so coming right a

modernization the with coming expected AIDA invest revenue to years. deliver major We in existing continue Evolution additional the to like also programs over fleet uplift

you just our by we're ship. to not know, buoyed going As be

our Phase introduction of X opened Key premium landside I II really Key. the were for XX for built of XXXX, for can't but Line use the in portals fully July Bahamian a planning It's as it berths building. up already serves in we're we're and the to game-changing destination Celebration call wait development XXXX Carnival rest Cruise Celebration Ships ramps when X our fun leverage for assured,

costs destinations the introduction further Half be few sharing islands Moon and same Cay naturally Half we'll exciting the our top our X even beach In the beautiful will time. reducing footprint also a the Cay, ships, there's pristine to in more the of midyear rated months. be private consistently Moon XXXX, at and Caribbean. about These berth environmental reveals among available pier as Stay our X in tuned largest at fuel next

marketing our David quarter, up in will which fourth stepping touch the also on. We're efforts

search, excess natural search up demand of XX% Our than growth working capacity versus elevated over XXXX, continue and XX% year-to-date up been over up with well visits to paid more web has XX%. marketing investment our drive as in we

vacations. under and already attention deliver pay land-based to and iterating as at amazing marketing off finding unwarranted price away we ways creative we brands Our to product more our attract is are the to and continuing book, it the on disparity chip execution constantly to

agent land-based peers even support from share attract again activities, we new-to-cruise All to guests. with as along partners, travel once these allowed more of take from us our strong have

fact, guests over percentages In were repeat and new-to-cruise up last both double-digit year.

our Now balance turning sheet. to

path a on for towards grade recently investment further of clear our continue expect We paydown, our debt having XXXX. have and through finalized line sight book order to

We XXXX delivery This just excess XXXX, spread ships next in X order years. book ship in ship also limited and capacity XXXX. us in over create none the of in and to one X growth. X position continue That's have of each demand should well to XXXX

on high-margin yield year's focus deliver should off of improving levels. growth continued Our record EBITDA this same-ship

consistent reductions and improvement year, experienced strong and X in to course, debt in cash trajectory a Of formula provide in we continuation X-turn have EBITDA this ongoing flow in and a the further months. leverage debt metrics resulting already for growing just a free improvement in our

long EBITDA all-time a relatively In global on X that $X this to all us thanks XXXX us continue through to has a of also years, We expected way team. in is are targets. just to billion have going short our progress and already continued an setting is This successful SEA are as firmly Change more we we've from put to achieving the and time. our up their path execution revenue certainly they outperform amount XXXX. high a our negative They It than come year. doubled achievement of remarkable for

vacations the by happiness as nearly to of visit deliver honoring providing this sail, just again powered extraordinary we quarter every cruise with we they X And and our past million them while ocean once place important, life ability unforgettable we integrity guests to touch.

that, I'll turn the David. over to With call

our third Thank summary a quarter results. you, of Josh. I'll XXXX start today with

of highlights fourth provide our the will Next, I September quarter guidance.

to color for guidance consider finish on improved things update up XXXX, deleveraging on along year other our efforts. I'll then Some our a few with refinancing an and full with

quarter year. in up better turn our million was spending. again. and Let's strength as driven June compared The X.X were driven we $XXX First, outperformed X.X% well guidance This was favorability summary by as prior income in $XX X other to by prices came onboard as million exceeded in revenue Net close-in guidance the to June by outperformance third things: ticket than essentially of results. as the once yields

than lower day ALBD, prior and available over berth $XXX to slightly compared per worth better million. fuel or nearly guidance, was without were costs points June improved cruise year percentage X Second, the which

cost-saving Most as an through inflationary onetime expenses timing benefits benefited of the our pressures, items the will from The to of third of the quarters. third September from year flow accelerated benefits easing quarter improvement quarter between and opportunities, full cost cruise guidance.

compared sides third up percentage ticket their spending outsized path in Per by XXXX. to occupancy X% to diems quarter versus Atlantic. of European occupancy on improved the third At X on onboard nearly of the for brands points the growth time, levels quarter saw the of our driven improved, both prices the year as higher prior and same back higher

and reported revenues, results we yields, delivering record operating record quarter, income. record-setting per record third For the demand, strong diems with record operating

were trends things year. the X X% the our positive The guidance to the of the quarter fourth per yield between yield as tougher for up the for third the of about Now the the for expected fourth just are is we third The highlight saw X.X% fourth quarter comparison diems and prior difference quarter X% guidance. quarter a over set XX% in Yield result the quarter third guidance at XXXX continue fourth fourth. in year to quarter growth prior improvement quarter XXXX. over is September versus of

the see XXXX, which fourth did to fourth that fourth continued anticipated per days dock for strong by dry advertising and we lower expected $XX that driven it like be by of impacted day first it and berth quarter. up higher growth the million that, to quarters Having planned, available quarter about primarily up quarter cost shift quarter said X.X%. and costs have are are price. to yield Both in quarter X% third is is anticipate of higher without fuel Cruise great was we expenses the

X.X% great per on cruise quarter, quarter, full in expected dock and fourth were said the essentially without the we us this, items are expense, second be often dry have cost example of up certain quarter. advertising different a not cost like flat seasonalizations year-to-year. the where quarters the items ALBD third is in first slightly to times, cruise the I per and judge quarter costs quarters improved in ALBD XXXX have see fuel from up X% approximately year the in to other as many As and between relative the

is was September $XXX Net from first, year full third things: benefit September flowing in driven the our guidance. the June $XX a revenue $X.XX quarter. yields million guidance. improved This our by million by improvement guidance income at over to an for XX.X% improvement set Turning X to billion, through improvement

improvement cost third the from mentioned. fourth flowing to quarter to million with the of a benefit Second, million per ALBD million the cost approximately $XXX in as X $XX through X.X% reseasonalized from point I cruise quarter, $XXX previously

$XX X worth at of the currency The and levels, price spending, strong and the fuel in higher improvement from increase million. benefit the ticket a is prices, components Atlantic. historical yields XXXX higher with occupancy all parts, higher result on XX.X% a sides third, both of improving And in onboard all component

Now a few things XXXX. for for to consider you

capacity are of XXXX. to increase We just forecasting X.X% compared a

positioned well higher drive to inventory sell same to pricing year. are time the last We XXXX less than with remaining

We anticipate are We XXXX. looking Key return our also Celebration a the July be game-changing of introduction investment. Bahamian excellent to hit our guests and will forward that with destination provided our Celebration smash Key on in

year-over-year operating expenses for expect impact will comparisons X.X. the our do by we about overall that the destination However, cost

by our XX% overall dock impact are we will X.XX. XXX year-over-year XXXX, about of which an days, increase In versus expecting comparison also dry cost XXXX,

bringing I quarter prepayments profile will $XXX EBITDA the we to proactively of billion record of prepaid efforts. of since efforts another a beginning million refinancing With $X.X finish our to Since billion, deleveraging our third manage debt our $X.X continues. June, debt up and with XXXX. total of our summary

back borrowing we to capacity XXXX nearly bringing successfully commitment level. the its million, revolving upsized facility billion our total credit to Additionally, the $XXX undrawn by on $X

Furthermore, look more opportunistic continue time. will we refinancings to for over

in debt-to-EBITDA positioning Using X/X Our our X-turn $X continue and leverage our improve us September debt year-end improvement to improve. continues to of as of guidance the net better we path leverage the will metrics. EBITDA approaching X.Xx our investment-grade compared a expect down EBITDA XXXX to to levels metrics XXXX than billion, way and in grow,

fortress ongoing in continued to our balance further leverage lowest Looking execution sheet, shareholders. forward, debt down the driven among and in value improvements transferring moving from holders to our order while on book rebuilding the we expect substantial decades operational the financial by free cash metrics our process road deliver continuing flow and us newbuild of back to our focus

Now operator, the call questions. let's open for up

JPMorgan. Boss first [Operator line Instructions] Our the comes with question of from Matthew

nice really another quarter. on Congrats

on Europe? can elaborate pricing the maybe and So and Josh, seeing base continued could to stronger XXXX you on you in of you're specifically record Maybe currently XXXX trends that if touch on momentum, for that the cited? the and regions volume you business maybe across start

Sure.

best and our that's about XXXX, consistent broad-based seeing the and we're So the on quarters for higher the I'm is probably North is America position way well. book talk European strength the as to across brands, and both what

So we're positioned very well.

have been goal. the get booking now take pulling forward a and is job price, brands we of the Our to doing great which curve

it's So booked We're at XX very look encouraging. X/X next you about when months.

So we're you do pretty Matthew, a enviable a in place. followup? have

a be sheet. balance just would the So on follow-up maybe

some could from here, speak generation to you If that free flow the just priorities the cash and made? capital you've given of changes

see becoming to and investment both end as achieve as well in part is reduction X, our metrics of and SEA of priority where X towards as in the investment-grade levels goal do debt our the EBITDA, our our X the we have debt reduction, program expect basically, grade, Change XXXX. of you So improvement the

we've of plenty so about And time alternatives got beyond that. other think to

line Our with comes Stifel. next of from question Wieczynski Steve the

Congratulations strong on quarter the outlook. the and

yield lower touched be this for kind David, like little Josh of versus the shortsighted And your that a us in June. in prepared a you quarter little it quarter be to looks fourth might remarks. But bit might the a bit this some back guidance we gave about in back you the implied on it So David, -- fourth if guidance, or think of question.

anything of there's it's the pricing Or or any guys have are guess any quarter? whether I showing -- if it geography I couple spending pricing taking a onboard more in during -- use weakening next view you but word So to to use the I don't a a over around that or is just want or conservative softness, fourth from perspective months? wondering word brand, the just

really of Steve, the guidance on yield no but June where -- this is We Josh. were was there your from the to Actually, math, in quarter comes it not sure we I'm when side. change when said always we'd in in breakeven we we frankly, didn't with reach out so challenged came lot, quarter guidance, to fourth a think be and because fourth people of year-over-year were the quarter, December, our strong. able 'XX particularly was the fourth actually

and X%, feel good we're now So we about about talking that.

how bookings, XX% 'XX seems and want ask already year you I booked position, pretty and about for Josh, then, And you. Got Okay. in to a next the like XXXX. and good 'XX about talked you're it already for

just expanded table be and saying for you've think then window, nearing demand more it to And just kind if about are of where stays you going accelerate that Key? late touching -- Celebration status following differently, up here? if wondering quo on question, seen demand be So bookings, from maybe booking that point wondering leaving leaving on or might 'XX if start might much you that has money the you too you your a are in 'XX

Sure.

leaving would an brands revenue price we're exactly the great the booking the I almost maximize is not, one higher say decision are sell. to on -- to much all table, going that brand-by-brand, say because time that And booking to sure the not a I on our back to curve. -- the that's pull goal not year-over-year. as generate It's want your of is make we an ever-increasing we curve, to and itinerary-by-itinerary this There's by pretty So point. we're point buildup. the active are that's would

able sure there's the at that record activities to overall, just to position, doing going we're the demand revenue to the fantastic. XXXX if we're do and in us, to Key, is 'XX, delivering about and to get we're with we've the are with real natural first Celebration more ramp right into which clearly, So lot and benefit looking with that the even Celebration story and thing half a been particular, that's supporting that on that, doing of commercial increases. XXXX clinical fact to optimize obviously, fact going making in of we a premium that pretty to XX that and a This this it's eye ships, comes it the when When nothing we ongoing revenue. got to all up the all doing based strong be we're talk Key. is and it's about on board, And despite

question comes next Robin Our the of from UBS. line Farley with

too it's know I XXXX but... guidance to give for early

you're but -- anyway ask to anyway. ask going You're to going

way, which is ask me it this think harmless. just I Let

at it say start than So is Given way to a saying better that's you're ask an off year? for the innocent even everything to being you're to hopefully, position for and about typical a fair booked XXXX levels, that record XXXX XXXX it.

amount, I to was that you to I million of I separate it back and on just what share up that And borrowed was the a in I missed the XXXX? a you save of even was heard $XX think David there sort it in that if kind also just then $XX expense. shifted for, what we -- I would cost mentioned, coming expense catch onetime million. that this what apologize this, year show and of about amount was clarify that if But that QX want David, from wanted that? should will was

Okay.

question. So I will actually directly very your answer

be which are better starting year. 'XX off we So record is than we shaping did even for up to for a XXXX,

optimize and in the brands of higher we're doing higher occupancy, trying generation. are job really and great price that curve to revenue and are We a in booking

in guidance, and a where are. point not it's that's that's but we So time,

point we benefits, reduced wasn't why about included the far a things some the question the million cost of related to probably yes, by is second pension of a the million huge, concerned, credits little $XXX as were onetime and One $XX few other full the year. year. for reasons to couple As some there

the question of next Our from Ben Securities. comes Mizuho with line Chaiken

it cost finding? business expected. of been Or Is margin this XX%. some the few you're It flow-through the was that almost opportunities for is year. actively better of Can the On cost simply generally over the better subsequent a stronger out than you been some have past that leaner sales you're has the saves, to is both? the years? asset leveraging or talk of about fleet EBITDA the pulling majority side, now cost Costs of

lot cost not small is what board, of year. savings, as of well port across innovation, many of that leveraging sourcing crew out that it's hundreds the about we're travel No, all cost things other for better the items the mean half across roll the cost we're And savings I the of full probably business. seeing scale as pulling a savings brands, opportunities brands. $XXX million savings, through we our that across represented like

into Got portfolio I the it. level, P&O folded higher brand then know you a in And for other to the opportunities That's Carnival way guess Australia somewhat it similar Josh, going smaller scale, but this there's helpful. was I you do forward? streamline year. think

things never say never I'd off the table. take

a those XXXX. feel made quickly. how right continue portfolio now, entering is our of passionately to brand-by-brand, of We'll that we real sense that good ship-by-ship. pretty I about this decisions lot we we're one But executing think just felt about something and review

comes the with from next Our James Citi. of line question Hardiman

I cost dig commentary you into gave David. wanted of to us, some the

better, it's saves maybe cost this for some obviously, growth like X.X% that inflation. seems and getting So year, with better

Key that base as our any were call-outs. the help for to next Maybe take of that I there and of sort year should X.X don't what offset of of any year us think think positive the sort negative X.X% in year? other talk next add called inflation on the guess, level we dry of is and other that call-outs we if XXXX this and some for factors X% through ones X side be starting about out another I bps just you from will point I think range equation? XX Celebration the about are docks. those

some is trying we continues what include Well, know, out. inflation the to December. to over we're guidance in continue of on but in know We'll inflation Plus that our months, still to work me business. exactly level provide it's -- figure XX you that that next our let if going opportunities. is cost-saving within There when be we

quarter, opportunities have so. said opportunities and do and the business we to there our in in continue even those in and to As work the leverage to through we scale business the call, our best still the further second I in as cost we June we'll though third metrics did believe are the

of And we'll some of which will some in guidance, our include inflation. offset that

So well Key gave -- X my cost to I The the point. in fixed are and things prepared Celebration tuned. the were this remarks relative stay dry at pretty but that of docks

highlight to wanted we remarks. prepared so the And those in

already would impact if vacated that region region that, 'XX was year? pretty widening the in sounds to a the much demand well Got negatively seem seems of the it. it table. at getting guess is mean I the that keep I the potential of off impact hope business That business. a would was just your tailwind. to all, from that one speak be speak I And then maybe conflict obviously, now we for everything like next -- how, perspective. to But questions expect XXXX. to you that going it the in is to your to Maybe some degree, that East help Middle

it region But a So we market thoughts were weren't and our get with on Middle region. for hope for to really in it. doesn't business to peace. major It's us, it and everybody going and the getting god not hoping banking better we're East contingent isn't worse, on not the source

markets source escalate potential. to us were are something are of it unless ships with and significantly our East, lots we're to mobile, than for that phenomenal the wider So in Middle

comes line Scholes with of Truist question Patrick the from next Our Securities.

purposes? by increasing year. increases us quarter granularity talked question, dock year little give My for for on Can next more dry dry docks about a you next you some decreases perhaps quarters modeling first or possible for

if that handy, I can have I'm call So she all you. sure But you to Patrick. provide detail don't that Beth,

news about just down you we call some and Cay. And any I have above and as a you. the out Moon the Cay, Moon pier cruise there's at for Beth, then see such beyond pier water Do new parks Okay. road? a Half second, plans like Half will longer-term

a So yes and a I'll no. well, give you

want not. So water Absolutely do park? we have Do we a more plans? Absolutely.

between the what of we're what Cay Key -- looking -- Half really center. Key Celebration to and is difference Moon and portals Celebration at Celebration me, building at difference So the and about we're building and X fun pardon Key between is be that entertainment

we most Caribbean. And What that's at beautiful is Half crescent Cay beach, to that have in enhance. Moon the islands sand naturally of want white talking of a destination to one going be we the that pretty and more are private shaped Christine's we a And different the good thunder, itself for true a reason. steal make won't months. things completely destination amazing that over coming will about but and coming in I that something

Brandt Barclays. of comes line with Montour the Our next from question

there. making. kind haven't really full question targets progress off, just we guidance, your this obviously, the in of We with the Change on So you're got an is, touched Josh, a SEA we release. can calculate year I guess the update bit of starting and X-year new 'XX little

us narrow implying yields look And give at and that can to between imply costs could that were it's diems gave those sustainable would what and for you to sense you we spread were Investor X, better? KPIs, sort and if that do the were the that Day, us would sustainable cost harken that -- we we in think targets. And a what pretty get some to thinking you of those your per back number

that if given you So already the just same that, operating But in how that just sense a the those about you've could the current think of way a know I positive for all asking twice. guess I longer-term you've commentary -- business could targets? vis-a-vis you long-winded said environment, if us was today the gotten give you question

were in I up world teams X.X% It X.X about And to to are Well, seeing on And X% XX.X% -- the we yields, up up think gets yield, on December, almost X.X% phenomenal on if cost, saying ROIC. it, the up now on cost. points think on doing X.X% you us around only gets which up job. XX.X% we're ROIC. a us

way remaining expected. us of metrics, ROIC and after we're there years clearly, X year. and expectations. carbon about gets is We're year XX% per EBITDA the ALBD outperforming after with about as for the the there X of So It progressing XX% the X X the

in December there. want probably context put the more take get to and in I teams we take make those So we'll XXXX the targets. doing than it to them to when things doing But all guidance, further from guests hitting aren't I going targets. and Yes. that then that? great to their we'll those make you we'll end get outcome provide Absolutely. to be and to results things and stride, that's those and happy talk want business could hit that They're early? Do in of Do where

elsewhere see we understand consumers' happening, the pricing say, guess, affecting let's I why of rest you today. if narrowing of commentary toward steady, any bit top. leisure Do willingness from slow from environment, see your, it's kind but don't of that of We your Josh, your just the we normalization. narrowing sort to seen, sort has Okay. broader somewhat gap is and cruise demand And seeing get world in and that any of what maybe, sensitivity? behavior the could softer a follow-up, of if then the address land-based you what a not you is we're spend little your

business. Who we're a have land-based are a I to their We still softening alternatives. value tremendous You can't tell to you knows? doing ask remarkable And we because have them better. maybe is land-based value. that. But

a the on getting of job better eyes marketing, on more out, industry, eyes We are word more better our us. doing

brands by that's XX% because our this year-over-year, that demand past not are new-to-cruise profile. really focused about was on driving accident, Our quarter up that's

I now. So you like the years don't from crystal year look going what ball, now, have is a world and X to can't from I a tell

and execution a there's that's you But been I thing can the a on we the been how them have the long It's And tell just a question us case. that. good board then focusing commercial doing and can people job on great I doing of is think never to deliver doing never because matter runway one on and that's if execute and right a who better, things have, experience. we we're a keep always come we with convince

in if the travel a guess shout I remiss I because our way. do is be they And amplify I'd didn't agents voice out all tremendous

hand-in-hand that and And so that building we their in really efforts. profile is appreciate with success seeing demand their that we're success,

Our next Cunningham Melius the comes Conor from with of question line Research.

you the Can with and bookings, on you And touch on you look you accelerate? the mean, sticking your 'XX seeing demographic. are new-to-cruise Maybe just -- could at younger I if comments just new-to-cruise. new-to-brand

asked I mega term? long over it that think it -- just big for seems the pretty last quarter, like a but I you trend you

I got distracted. just Sorry,

As we to far the results, we in the who profile get what about the as don't what for for is really that when our breakdown but talk happy about talk folks the bookings, is can talk to of and sailed. future demand it we're about the advance, we profile

and profile widely our saying optimizing I'm execution, better not demand respect with as can. that that But keep efforts suffice at is say, keep keep everything casting to getting ending to XXXX driving in we it net and as to

no almost growth. have capacity We

our in to for. ships, pay the going So and that's to that to on result wants what get who demand driving increased we're all is of most just

brands or hasn't if age XX, the touched changed. Yes. I of concerned, over far quarter. last you of as think this the XX our profile look the on age most is we years brands all back at last so, really as average for the I mean And

Now our guests. the years the who ago of than decade older guests a of average course, sailed are repeat age XX

of So some we are people and attracting average like Lines a brands lot has of years young old. new our Cruise of like an XX age Carnival

XX half because over the So XX represent days But these -- of younger. that's or got that a States. younger. half think Carnival it's And or I average is guests years brand, its old the millennials are has population in the half obviously, or who United XX millennials does are, the age over

say profile the boomers, if they're love cruises. would push think is income, said I and can go like folks where portfolio I And a approach, a because with very nights love -- have a call cruises X. before, you the of world that on think call good where that it trying I Cunard, we But nights, XX very our like good mean, Holland either right? demand to Gen last or it's America, to that I about we we retirement base -- take brands is XX time lot this

that into millennial for harder profile. we fact getting demand that exclusion interest the pushing we really generations to we're have we're other we and of the and But that want leaning So into to what generation, love the that that offer. don't

you've questions lot Helpful. On know a of on gotten I Key, that. Celebration

bit in Just it halo different. are is expected? asking mid opening have that for or Like asking Is of it would people the they're little year. creating maybe a it next you effect

selling to general? would going reverse are you mentioned Like are you XX expected ships out think ones relative history than to quicker touch have in those I there.

we there's yes, is case. But Unfortunately, so no it. premium a -- carnival test because seeing are every for ship going,

opened are We hasn't it the is that seeing good thing out. are yet. And people even seeking it

rubber really people really it road the think deliver once experience we So do. can going the hit we the to is what show and can

from Jefferies. the David line Our Katz comes question with of next

and pockets this a here details there. the consumers there And interesting positive all have And when just appreciate it's we I that coverage, look is and the again, far. weakness quarter appears our wanted I behavior broadly of demonstrate in started are any some based across forward so smaller that on areas that embedded to on we be issue eye outlook? pretty of quarter broad-based keep an we are, as small are pockets, consumer go should there a double-click what just of strong any and to to

year-over-year. the trends of my that in might -- point. question. portfolio. top spending. What X% That's happy appreciate the by have about, I We're across I'm that a spending is, No, I fact, head, levels off seeing Yes. it to The say be the brands we're seeing the we've booking were just the onboard it in for We're all pretty talked that the broad-based. seeing off guess no. onboard much up I demand are

second this quarter... than More

that diems quarter increase were X. second up on an we acceleration saw year. board X.X% the versus -- X% year-over-year, which in per prior the is versus

our demand And pay doing the where you about to we a changing? what is been Or all macroeconomics sure we make want I -- and people that to things there's time that a better talking with to in consumer on. years, changing? great speak have that that's that at back of because goes we the we've things is think are to look think the offer, to as X profile are last least better to the we is job and the and all state on happy and we thing. So going can't the that goes for lot but focus participate, world, a at about

follow-up, consumer dynamics Perfect. you out you're of a of where traded And any demand else into observe record if who's cruise is able or my as part I the are trade-down a to can, vacation? just seeing something

what I that of that. to offer. from we've trading that is they experience mean we're I This we they're -- because it's want better that seen have No, doing want think down job them. not It's they the a convincing but to to something, do, says nothing something opposite.

were quarter. And off. apologize the the Congrats questions, Okay. I my readings for just on

with comes question the next Our Jaime line of from Katz Morningstar.

pretty trending the has coming Asia region to prior I'm curious been like bit in obviously something that Chinese meaningful Pacific as been data and or I you consumer? little that's if Just a Is was guess, any on, of was out the would pandemic. you it the because general? have it the update lumpy,

It meaningful percentage the wasn't things. us was it really of our China. was to a for Jaime, scheme pandemic to very Yes. the of capacity dedicated points prior grand few that in

it that's that been open to regions, and Taiwan and to it other pursuing very to respect at pretty continue cruising. have it's as for it be Japan, but when overall, I've have, before, they reopened want the us cruising We to competitors, our to with time not. successful comes international we're about, enjoy that not and ecstatic With I'm I region now. going this well. liked People something it's

just curious else. anything more so movement if was was with with there travel than them I any outbound Yes.

of occupancy room upside? sort of little Or as the has brands, European bit far for is in closed a the that gap As that? on left there in

It's big we find I our varying little all historical going It's a here mean But which opportunity and focused. to some is not number. of a drift be norms, from back have to to an I'd tweaks occupancy. more be overall, as say to degrees, our a we're the driving of is maybe going forward. really always look there. ability range. make improvement higher which to It's a we're driver where price, there's to And not and some brands

And the but disruption I any would hurricane mentioned guys of cost you have be if had you on that think insight anything don't it, impact, any to helpful.

for I aside, Yes. of dollars a to compared which, that significance. is it's region, the second ours about. having and take -- few should insignificant think it's the to on us. not a mean million that foremost, just impact putting it's anything first But It's we

of Our Assia Research. next Georgieva from with Infinity line comes question the

into that Isn't opportunity? itself the Occupancy a not delve to quick I'll by XXXX. caught a on relative still great that have. just questions few up fiscal is yield fully Congratulations I quarter. already And

certainly to It's push can in the little and to said, that more. a within for picture Like driver are operate revenue we our range, be just range we the biggest opportunity forward. Yes. we improve I going occupancy, a going of not the but there's how bit

to a in related MGO. be ports power, were David. -- Fuel to possibly that we cetera. because Baltics, question Sweden, we there? to well, offering quite seem Is little of estimating Denmark, what relative higher Germany track shore a the play are part the XXX, et that And for quick for power be costs maybe a that bit bit Could XXX shore

shore because It's No, we buy it, at in when expense. included in our included not purchased actually power, port. because the it fuel is port we the expenses

been that not an So have would impact.

looking sure tracking. But improve your overall. you're So some what websites tracking maybe what can I'm at Beth to not give you will at, look you're which and

you're brand? second acceleration basically, or That whether sorry, bother far SEA at Carnival a delivery, possible question, I'm for you would XXXX given this for program? sister the in XXXX, be -- the this with Beth, And EBITDA my Change and to point Is Princess it's it great one. and a order generation ship the I'll on how ahead brand

start And we feel you is that ACE, No. which our order Project XXXX. know, call is Carnival, that XXXX. until as order I what generation for through that. book set mean, did about doesn't We next but very good we

really of down expenditures with capital all its generation is the debt. So the to to we're headroom and going focus flow, EBITDA reduced pay that cash use

tranches, the So the Josh, in of terms highest going cost correct? debt after of we're debt,

got it's as want NPV Well, long if as we down. pay good a to it

factors of lot a ahead, David. yes, there's So -- go

the of going XXXX. to issuances we And really look X things are a is callable do that X say, it's have the at. I One was Both debt. out in double-digit combination there. cost of we

overall part year. early our . the help at So of -- in that we should next those when -- we'll refinancing look

They're some 'XX, towers. towers managed. We're well on be through unsecured, forward. to over in move We well refinancing maturity set that of looking is the at we 'XX because we'll time very well our the But looking completely manage as as get at at we'll also but debt and as unsecured look versus towers. goal to maturity that secured 'XX be

high secured that David, question, my And was basically versus cost towers.

I it's balancing So act, a imagine?

Correct.

right. about to Miami do and other if sort may the, there. your us feel are doing Port unnamed is ask to et Galveston, who have report an I you Canaveral, metrics? on what port I the do that? in already What All How building presence or somebody on think not They of And lastly, about competitor, ROIC encroachment? cetera, call a have a you and encroaching do terminal Texas

about encroachment. think as it don't an I

of X% about, talking market. vacation overall growing, part think cruise I the of small the are We you're company, but overall it's it's a market And small. the if

said got one. you demand only the -- questions, three with long as our will profile there's did be as so our operator portfolio and the cut brands world-class we to off And you though, jobs just of do fine. I

comes Wells next Politzer Our from line Dan Fargo. the question with of

mean think there want -- came cycle or up driving I and fourth any hick-ups to third conservatism? actually, in be driving wasn't that prior election follow you beat. whether any fourth could demand quarter reason the really the if we cited I that guide. about I new any be wouldn't cards there the the for maybe better Josh, or noise, know near-term board in it's there demand the is to close-in that quarter additional a comment. yield as David, do are on on much your But better, mentioned change Or quarter?

in going That's to give And you what's quarter of of try going to next we There's every happen. X try on A estimate to attention focused the always outperform? other Absolutely. particular goal. happens mean is other to nothing we the best something I than month. about right, do fourth what our Look, than you be normal. years. It lot said. the

and that we has. business of a going the But impact is ourselves. So we'll see kind strong, lot what of still expect

left keep lot the there's Yes. mind, the sell. not the And year with also in revenue XX% of a books, to for on already ticket

focus just couple then should It or progress the these the a on? hosting kind weeks, aboard of follow-up. way are be Princess. But inflation. Sun about of maybe for In on SEA the some of focus savings what to cost my you're Celebration of we of kind investors thinking maybe framework Any maybe key should seems key That points easing some there's like your Key, from Right. and think about? makes And a topics Change, sense. lot kind opportunities high-level of we

it's the we're making XX our think and set -- announced priorities across about is level the we for as of for it's the kind time see And hopefully, that opportunity talk were just good to been the on got SEA together Change. Look a way to And everything. what it's where it, since about it, are first see . months which progress we and us board. you we been

she's and say which on We a to just the to Princess. you remarkable Presidents just Sun brands is me, And you'll does much you board for brand from President pretty ship David, us. job. not game specifically a a Princess and all who changer that the premium of true to of market, team I'd with remarkable of also opportunity, from will hear our be an the opportunity meet brand be Princess, and for but get able will -- the to hear the showcase also but the And an and actually get there

So good and little Corporation. all things opportunity for inundated you Carnival to by get a more bit educated

of Chris Stathoulopoulos Our next with the question line from comes SIG.

So Josh, in I'm way. question here going ask to different the demand a

and what and mixed a different is airlines. kind demand sort within like if persistent segments, lodging, income sort As In Lines, about consumer, with this hearing as ongoing of Cruise little dynamic and airlines, just unique different some of tourism concerns a around lodging, bit travel this think certainly we of you in about we of think bag so here global you will, ecosystem, think will. momentum, within the middle price lower sensitivity, about if feels demand, here to

could as was I the Now pieces if you order why. to the or about rank wondering think moving

land-based discount So to trips, there's dollar, a reopening I markets, say perhaps the new-to-cruise certain of piece, baseloading. strong U.S. later would

Or not this as -- debate which think pent-up whether you I the There's just base us context of going help Just provide this around help load provide some if about parts could forward? demand is here. any what here, think -- still moving we actual is some is the case? demand

I'll for X is with Well, agree affirmative anymore. I sailing years We've thing been over pent-up not I it's say completely now. you, demand the most guess

that's it creative, generating for, then blocking looked looking to to answer right respect people try do on performance just right, getting our to to that our of have in eyeballs is really the our -- tackling operations, down. to partners, it the and being brands people of comes potential there I what's out question and good but not ordering, I interested them going I'm and new creation driving by the driving doing job at would rank to trade that better is generation just to and it a marketing, pretty never of generating customer, when at and think think word to significant industry, all us, part better to a who demand in and commercial think interested. coming websites, at activity that, I getting about pretty everything don't that the awareness, before. With by I So of us doing get people way. when your driving I all lot thought we're comes going a all say maybe at get cruising we more And in can

my And follow-up, Okay. then David. as

a as XQ. about come the for that And in to other and Is there ALBD math about our a said, here, on I sort hold? But level plan? own adjusted I the Or my you of to this base load take how takes, pieces should need to with part advertising to that can per elevated advertising puts will, Or Is quarter be can we have continues reason? book think initiative as softer, and NCCs a I here, side, on you assumptions, the and know next So up if point continue? moving next think that's as we the we year, about inflation. on get expect think we expected of of year? we do it

Yes.

give next all in planning next of need month be which in as do, well want X we back those the things to making about items. over many advertising. today half or to And decision of particularly doing. what the a process, the for year are that we're the December talk decisions guidance exactly us summer or It as advertising really other premature we the So would in to relative be in of next we'll to for midst

give into X that you insight we'll in more months. So

couple a about just booking talked is, a XXXX of we add remember, just record-setting things. I'd One period.

shorter So just long to we we're things term advertising getting booking a people for consider filled combination the ships term. to getting booking is and short for term, and not longer the need the term, we're for of in the as the

is, for how generate we're it's but want benchmarking, basis go to not of bookings and much looking job. we it, it's doing ALBD a about on I useful too the So think It's and it we scientific. get how need an good we spend at really just to think metric to

we're even if were of percent bit we the I benchmark still And everyone. of lower a when not back think you do and basis, a at than in higher than rest couple year-over-year, we're quite XXXX, look though most, higher

about to So drive we think to to thoughtful we'll what continue be need do we and it, the do business.

I think for we are any got I we've one time time more -- operator. more, think if one there got more for

the of from Fred line Wolfe Our final Research. question with comes Wightman

to back Josh. to I just wanted come new-to-cruise,

XX% you quarter, that quarter. up up think said that this was Last I XX%. was

total a of percentage So there ad reallocation a of step as what as that? guys of drove per strategically some could the Can how that's And vacation acceleration increase pretty big are. from spend? you penetration on you as to brand you spend? big think larger Was maybe it's sort a touch of something that X% that

Yes.

in no that's is great the the for our was there's past websites. be So a particular of that answer better I'd one charts. thing of combination going the Alaska It either. say driving doing same off to advertising, year usability better this new-to-cruise for trade job,

by and have that for way skew has you it was should absolutely because the do brands to do you It higher anybody one you're have go can go to is to really a of new-to-cruise the Glacier see Alaska, it amazingly, which tends the more And ship that because that footprint else, permits phenomenal, by we our way else going can everybody it. cruise replicate. if to nobody they we is only and should only to than and Bay do, appreciate go and shoreside

you and just us Take hopefully, that same about next forward talk has to us talk I week. it. well. And you, basics to appreciate the the quarters continue to see few about doing that come of again Well, thank that don't I'd everybody, So in in talking served those the very, joining in that say the very months things a for it's look me care. heard past better. I for about you've quarters I'll

Thank you. today's call. conference This concludes

time. you your your lines at You this Thank may for disconnect participation.