CCL.L - Earnings call 3 2022 | Carnival Corporation & plc

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Josh Weinstein

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, our Chief Financial Officer, David Bernstein; and our Senior Vice President of Investor Relations, Beth Roberts.

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

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

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

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

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

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

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

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

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

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

guests. have we our of loyal the pause, benefited Throughout dedicated the support from

of as new-to-cruise. mouth and X of efforts we new-to-cruise Now in advertising. beyond, have historically new-to-cruise of are the of you and important to grow are been About XXXX And X/X we our most know, probably capacity guests drivers attract guests. as redoubling word

prior day the out. the after unparalleled leave day XXXX, the army been the we ships, back advocates that of the than word of of we about spreading deliver and alone, building to just and over have mouth, respect XX% word With pause, guests all the carried vacation our in more quarter In in of the twice we we quarter. third carried number in experiences

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

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

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

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

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

case us, are land, are phenomenal a product. a we to when generating priced we The too of from telling is issue Our increasing and our not demand much We value. should to a way comes itineraries. XX% revenue profile, Net are it better. discount significant delivering Promoter the XX% be Scores at and on is do can, to which today, exactly will we based anywhere Bottom should line,

areas each to brand capabilities their begun or commercial her president understand improvement. and team traveling to with have I for and strengths, meet his

are tactics in to through We price their seize bookings capture while working and strategies to taking of interim. quickly opportunities, roadmaps the advantage all and

each management adapt focus data, the our evolving guests marketing successful; friction to while launching on target environment; as more internal more bookings, areas approaches; trade our sales lead an that multiple to brand renewed a to partners execution travel revenue above. key and differentiation speaks at allow operations, performance and segment; support of cross-brand generation This as across all continue level driver further continuing another to need points audience using cuts and relationships, sales driving brand's digital marketing improving all each and to perform and demand; agent audience; channels to and high booking effective our to in commercial we target around efficiently insights ensuring secure clarity we target brand's new-to-cruise learnings of to creative optimal a be aid to of reduce

brands leadership been presidents, them. Since throughout new The we that presidents the has been of fantastic, brands urgency real. at X actively pause characterize sessions to brand And engagement bench the energetic organization. these and X the and below welcomed these and and these our transparency brands leaders, of have sense is have brand forward began, the their new speaking have drive of actually have bolstering leaders the

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

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

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

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

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

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

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

trends materialize our planned We will favorable to make as expect the our summer impact operating we toward where current these the as profit. of bulk season to our we efforts continue important of accelerate and move

newbuild When to been been company. it cash priority thanks to sheet comes company for we our substantial our significantly a in our maintaining balance while Pre-pandemic, program, a to our this always structure, the has achieve generated. have investing able capital flow strong

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

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

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

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

optimize We long-term to strategically near- managing our portfolio performance. are and our

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

their of of Our to plan travel we to are also I the as lenders for our improvement. port and, destination our gather strive course, suppliers, communities, more to investors, months partners, business. perspectives with guests agent in important coming and our continuous speak stakeholders

full us get factors by dedicated to vacations to now that happiness fulfill members get of it heavy I much-needed operations, unforgettable up our and our that the to has take to all and in response our and team the shore, of thanking for part. ship would and We And to and personally all pause external set get creativity, talented forward end the globally, the now innovation to skill like and lifting business and the to guests. our drive throughout team took built agility by exciting we delivering comes proactively to operations. use of of resumption to mission creating back

I'll to turn over the And now David. call

David Bernstein

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

Turning operations. to cruise guest

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

close-in For quarter, note demand percentage quarter, third continued encouraged during a XX% third XX%, We occupancy XX very we the the of point were a August. anticipated. quarter high we occupancy the quarter. with the on trend the the by quarter for was experienced a from third ended the had increase month We in second

mainly quarter passenger and U.K. decreased XXXX, from and of dollar, Revenue quarter or credits, Continental with the FCCs, more XXXX, the our with impact onboard greater significantly Once in by in XXXX a for pre-cruise given more the and U.S. of again, the called third our effect and currency price X day per guests Europe. the XXXX are diems stronger third increases, strong driven guests presence Europe per due activities. up our participating to increased were along commonly as other versus by the onboard in the large wallet in third quarter spending cruise brands future of sales second revenue

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

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

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

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

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

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

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

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

in XXXX. most New seasonal in which over bookings offset decline customer XXXX of of for was the third billion the deposits, historical $X quarter

Furthermore, to couple to I balance items. wanted of investor engagement, sheet-related facilitate a mention

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

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

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

and business. booking second booking Next, volumes activity let's tone XXXX the trends third period. XXXX to the of gap despite did not see any quarter the of all third normally third strong XXXX the booking a in during volumes second future current booking the quarter closed the the slowing slower the being quarter and quarter of levels. We saw seasonal XXXX a quarter at look for continuation sailings Booking accelerated during versus

volumes than XXXX land-based mid-August, considerably aligning It since announcement vacation future protocols to alternatives. the is see great the relaxed higher booking sailings us levels of all for in towards

year are recently. This promotions optimize the the variant protocols group effect inventory only for to in have we our earlier wave of occupancy disruption using through us near-term in However, overall with price environment, protect by to in. the very to To this and more people season increase to sell integrity closer limited XXXX. been and select important the working available a more part channels, to close-in opaque we industry left this by managing restrictive curve booking until Omicron caused in still of nature

while fourth due Pricing, to by resulted for XXXX quarter are the significantly channels, of current levels volumes we opaque XXXX situated that in historical FCCs. below range, XXXX this limited the booking XXXX part we position promotions quarter sailings, cumulative current are the believe advanced closer-in our given well to Therefore, our cumulative position booking for book lower running in book in fourth we in with ahead fourth as primarily compared quarter capitalize impacted on results patterns. position but book

quarter historically X It lower in occupancy, drop occupancy than has of XXXX. respect the to fourth was given business. dynamic a quarter been percentage With seasonal point our third

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

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

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

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

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

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

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

expect Josh efficiency gains to to helping our ships, efforts optimization XXXX also that we fleet Of mentioned our in from inflation. mitigate new earlier, benefit from course, capacity with XX% of nearly from the

In a quarters for year forward we business higher strong XXXX, summary, XXXX in significantly revenue. XXXX, are of track per for diems this have Onboard higher all looking us revenue of book prices. considerably Prices up onboard at XXXX. to in in record a X and puts on are

and Josh with revenue I drive of sets time. clearly XXXX, brand over all teams the to the working this stage for with of positively All together growth

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

Operator

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

Steven Wieczynski

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

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

Josh Weinstein

for welcome. thanks the Steve,

asked So you I things. a think couple of

all. I them can if hit see me Let

and So to continuing, to up I'll strong, book can't won't is incredibly business peers. X all, first promising, have really speak momentum us. our good. of I the is weeks, speak from things as which to peers. I over our David's. The you of heard remarks, is speak prepared as last well as my the ramped Particularly

obviously, loud has great this and at we've With wouldn't America's Caribbean look line, through They going year. it are past versus at respect the looking a clear American been question. and we're to European cruise done But North brands, as the this job. through how Carnival as and a I showed

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

you and think better. what before, my we've about already in is As do heard can we prepared I remarks, talked

all I our to have significant for high of brands improvement expectations side. the make revenue on

of blocking tackling. and some And it's

pretty And it really confident. of is actually in feel envelope certain the areas. Some pushing I

are I've but forum significant brands going setting. type significant. activities I far, It's don't America that managed to think get it's that -- Costa, ultimately of we to Princess. And tracking appropriate are lead been small, some to some into Holland things, are and any So hundreds improvement. in specifics, this really that in big, to And I of X the are hit underway

Steven Wieczynski

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

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

Josh Weinstein

Well, we're certainly not anticipating providing strong XXXX. EBITDA obviously. in We're guidance,

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

Operator

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

James Hardiman

Josh, welcome aboard.

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

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

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

Josh Weinstein

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

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

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

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

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

David Bernstein

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

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

James Hardiman

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

Josh Weinstein

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

partners come in it so break as get more and cruising, daunting, a could inclusive they communicate who through our we be, we success once could because them back. for how That's how want will and because of very help us them, timers first dividends. being that serve know board able to convince get confusing, good be story that be why to in product travel we on I that they with critical don't can I'm committed agent are And think the industry can to are, an

varies behind brand-by-brand, way. we're think on going I of corporation, speak know, really us they're they dividends it to doors. in our all and think what that commercial they specific the is can but so our our all that tell do and I things to peers how brands, do for and I do can't don't and pay with think and -- seeing big the closed I I you I it a to side

Operator

Next question from Robin Farley the with of UBS. line

Robin Farley

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

Josh Weinstein

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

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

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

Robin Farley

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

David Bernstein

Sure.

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

basis result anticipated. potentially as more it's had not is advertising expense But So said a year change of higher tad than significant from full previously what a on a a we it before. we

guidance. Just like previous the maybe a from that something point or

Robin Farley

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

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

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

Josh Weinstein

Yes.

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

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

So we about huge need a toward And amount makes building that's to particularly be we're real it new-to-cruise, where wave. thoughtful. the inroads, point of as

been goal our this setting -- to we've really all that. very And is up be and had has it years a since ourselves well for successful wave,

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

Robin Farley

That's Okay. helpful.

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

Josh Weinstein

actually. yet, that those up say We're wouldn't levels. I to No, back

more We to sell. capacity have

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

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

David Bernstein

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

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

Operator

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

Jaime Katz

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

David Bernstein

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

Jaime Katz

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

David Bernstein

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

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

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

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

Operator

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

Benjamin Chaiken

it. missed I if Sorry

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

David Bernstein

Sure.

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

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

So tremendous. the have now the average. the said historical book booking patterns we at been saying But at was end higher position, of range, the and the previously it's had we're

closing in gap, slightly exceeded we quarter, Earlier levels the have XXXX levels. below the XXXX and were we but now

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

Benjamin Chaiken

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

David Bernstein

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

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

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

looking forward XXXX. So to we're

Josh Weinstein

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

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

Benjamin Chaiken

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

David Bernstein

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

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

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

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

Benjamin Chaiken

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

David Bernstein

Yes.

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

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

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

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

Operator

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

David Katz

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

Josh Weinstein

perspective, them performance and whole they -- them marketing turn way? conversion? that they digital it's the it's just speaking communicate targeting mean, it to Are marketing then effective cycle, start to right of clearly I does right mean, I answers, the mean, There's that And being good have with leads brand is. from right? they a they right? able folks? I into Do So the right are generate the a a who can life lot that question. it's are agenda

that been how at And brands commercial how we It's has way time, have And right the mean, for we of the at our so company. revenue do literally to been we far the really the we outside use commercial choose -- our it. on opportunities having we how the right? opaque management, I various people promotions it's curves, do space. our it's with focused all us. things teams it's are discussions to channels. in introduce pricing there I And the whole Yes, can't speak so

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

David Katz

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

David Bernstein

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

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

Operator

Next question Naqvi with the line of HSBC. from Ali

Ali Naqvi

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

David Bernstein

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

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

cabin So expecting. a the drop occupancy, of drop the is normal. in a increase that's fourth we year a this occupancy in We're an occupancy we But build and that aren't in expecting occupancy expecting in quarter. result pretty are

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

Josh Weinstein

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

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

Ali Naqvi

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

Beth Roberts

the hurricane? of impact The

Ali Naqvi

wave On season.

Josh Weinstein

by press our all, for Fiona, to the our we behalf of and release, prayers anybody impacted. deepest first are Hurricane both of on concern been and like I those thoughts extend in affected Carnival Corporation, said and Ian who's so Well, would as with

time, anything anticipate in impact current the significant coming that see these all don't this wave on out anything have at any business. would upcoming At significant point impact, on of respect we season. don't type our hurricanes we With to our of

David Bernstein

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

Operator

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

Brandt Montour

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

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

Josh Weinstein

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

So year. we're to make going to fantastic do everything we can 'XX a

good been a it. got smash which We're that ramping past a few actions. doing to ramping goal we've And base that might our things whatever far, things, XXXX. depending the in on back few we do so years, in months, up And upon be, to it is the hadn't

David Bernstein

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

Josh Weinstein

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

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

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

Brandt Montour

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

Josh Weinstein

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

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

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

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

David Bernstein

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

a and great thanks, So have afternoon.

Operator

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

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