Carnival Corporation & plc (NYSE:CCL) Q3 2023 Earnings Call Transcript

Brandt Montour: Okay. That’s great. And then one more pricing question, but just more of a regional breakout. You mentioned that European per diems were now positive this summer. And I guess the question is the way I would ask it is, does that mean that sort of 40% – o r whatever your capacity in the continental brands, which is something like that, 40% of your capacity should see – or should be on its way to closing the gap versus what you think – what North America is currently doing index to 2019? That to me would be a material tailwind. Is that the way you see it?

Josh Weinstein: Well, I’ll look for David to give the exact percentage of our European brands. But ultimately, yes, we’re quite encouraged that they’re going to be making up big chunks of revenue yield performance because they didn’t have that ability to do so in the first half of this year. But the fact that we’re here in the summer and the yields are positive, I think, is a good testament to their trajectory. David is looking for the capacity number for you. So…

Beth Roberts: Specifically to the Continental European brand, which is…

Josh Weinstein: Continental European brands, yes, hang on.

David Bernstein: All of our European brands, including the U.K., is 38% of our capacity this year. But the Continental European brands is less than that. I’ll calculate that in a second. Go ahead.

Josh Weinstein: Probably closer to 25%.

Brandt Montour: Okay. But the per diem recovery comment was about Continental or all of Europe?

Josh Weinstein: Well, the per diems were – well, the yield comments were specifically about this summer and Costa and AIDA. I would say I can fill in the blank. The other big player in our European segment is obviously P&O Cruises. They had a 40% capacity increase this year. And so I can’t say that their yields were higher. But I can tell you that their occupancy is back, and they are well on their way, and that’s absolutely as expected.

David Bernstein: Yes. And Continental European brands are 26% in 2023.

Brandt Montour: Great. Thanks all.

Josh Weinstein: Sure.

Operator: Our next question comes from Robin Farley with UBS. Please proceed.

Robin Farley: Great. Thank you. Two questions. One is just going back to the comments about 2024 yield. And I think the comment was strong yield improvement. And I know there’s a glossary of David Bernstein adjectives for slightly and strong and things in previous years. So I don’t know if you could just remind us what strong is implied? And I mean, just the math of your occupancy recovering if you get back to your full occupancy being 6 to 7 points and then price on top of that, I mean, it seems like it has to be at least a high single-digit yield increase year-over-year. I don’t want to put numbers in your mouth, but maybe you could help us think about David glossary there?

Josh Weinstein: I don’t have David glossary. I just told you strong. So I’m going to stick to that. But I would say a combination of getting back for full-year to historical occupancy levels as well as price increases will go in – both things will go into what we will be looking for as far as yield improvement versus 2023.

Robin Farley: Okay. All right. And then also, I wonder if you could – I know you just sort of half launched part of the sort of Celebration Key. Can you talk about – since it sounds like you’re not giving out what the cost and amenities will be at sort of the time frame for when we might hear about the cost and amenities. I think investors sort of well understand how some other private islands have been real drivers of onboard spend and ticket price. And so it would be great to sort of get more of those details for your new island? Thanks.