Cruise ship operator Carnival Corp. reported record Q3 revenue of $6.9 billion, the highest quarterly number since the covid pandemic began in early 2020. That performance follows revenue of nearly $5 billion for Q2, signaling an upswing for the Carnival Cruise Line owner.
The rise comes despite higher ticket prices, largely thanks to rising fuel costs. Cruise costs increased 8.9% (pdf) in the third quarter of 2023 versus the same period in 2019. However, Carnival now expects fuel consumption for this year to be nearly 16% lower than in 2019, better than previously projected.
More travelers are choosing cruises as a cheaper vacation
The company’s booking volumes kept climbing in the third quarter—to almost 20% above Q3 of 2019. “This has helped us extend the booking curve even further, with our North American brands exceeding historical highs and our European brands essentially achieving pre-pause levels,” said Josh Weinstein, CEO of Carnival Corp., in a statement. “Both revenue and earnings significantly exceeded expectations this quarter enabling us to take up expectations for the year.”
About 2.5 million people have taken a Carnival cruise so far in 2023, with first-timers increasing by 170% compared to 2021, driving occupancy. In the wake of the pandemic, cruise operators have seen a surge in travelers looking for better vacation deals—cruise pricing is now reportedly 35% to 40% cheaper than leisure hotels or resorts.
Carnival expects business to remain brisk heading into next year. “Our booked position for 2024 is further out than we have ever seen and at strong prices,” Weinstein said.