Love the information from you and Bubba about the shore excursions. We’ve been to Alaska 3 times but never on a cruise. We have to do that.

John, just to give you a comparison about gas mileage. We just started our northbound trek from Florida yesterday and it will be about 1300 miles each way. We only get about 8 miles per gallon in the motorhome and with diesel prices approximately $3.85 per gallon it will cost us almost $1300 just for fuel. Be glad that you’re not home enough to put on a lot of mileage on your SUV.

You won’t believe what happened this morning. I’m beginning to think we’re getting a visit from your Murphy. I went to wash my hands this morning and there was a scorpion in the sink. I’ve never seen a live scorpion and we have no idea where it came from since they’re not found in Florida. Someone that came from the west was probably in our campground and the scorpion decided to change vehicles and ride with us for a while. Well, George smashed him with a fly swatter and then flushed him down the toilet. Now we’re just hoping there isn’t more than one.

Have a great day!

Linda

I see the blog is approaching 2 million hits. Is there a running total on the number of posts?

Bill

I’m back from a wonderful but too short adventure on the Inspiration!

First, the Evolutions of Fun upgrades are amazing. Second, Risa is one of the nicest folks I’ve ever met. Once again, Carnival has secured the best and brightest as part of their team. Risa’s mom happened to be sailing with us and I understand where Risa gets her dynamic personality.

Fantastic pictures in today’s blog!!! I have yet to see a better picture of Heidi than the one with her peeking out from behind that huge crimson scarf!!!

You were right… that photo of you blowing glass was a bit… uhhh… odd… I’m sure that I could do no better but it certainly looks a bit … limp???

Congratulations on 1.8 million dedicated bloggers!! How wonderful to see that your fears of folks abandoning your thingy were unfounded.

Please pass along my thanks to the folks who work so hard on this blog… Stephanie in particular.

Offer my howdies to the lovely Heidi!

Thanks so much, mate!!!

GregB

Full Steam Ahead For The King Of Cruising

Dow Jones Newswires
12:10 AM Eastern Daylight Time Apr 05, 2008
(From BARRON’S)
By Sandra Ward
It’s rough out there in the stock market, but buying shares in Carnival, the biggest cruise-ship operator in the world with some of the best known brands, could be an excellent way to ride out the storm.

High fuel prices and worries about a consumer recession have torpedoed the shares, which are off some 20% from their 52-week high. At about 42, Carnival shares (ticker: CCL) are changing hands at levels not seen since the terrorist attacks of 9/11. Based on consensus fiscal 2009 profit estimates, the shares trade at about 13 times earnings, compared with a historical multiple of about 16 to 18.

Yet this is a very different time from the aftermath of Sept. 11, 2001, when airlines were grounded, people were afraid to travel, and the cruise business ground to a halt for about six weeks, says Chairman and Chief Executive Micky Arison, in a telephone interview from company headquarters in Miami.

For the past 35 years, Arison has been at the company his father, Ted, founded in 1972, the past 18 of those years as CEO. Many of his marketing innovations, such as all-inclusive cruise packages — covering cabin, food and sometimes even air travel — shorter and less-expensive cruises and the idea of cruise ships as stand-alone resort destinations, transformed the cruise industry and are standard features today. The company, which has a market value of $33 billion, has grown from a single ship to a fleet of 85 vessels serving every segment of the industry. Arison and family trusts hold 36% of Carnival’s voting power.

The current downturn barely resembles past recessions for Carnival because its business has become much more global, with about 40% of revenue coming from non-dollar-based areas abroad. “That helps soften the blow” of a downturn in the U.S., says Arison.

Over all, he says, Carnival’s bookings have held up “quite well” and occupancy and pricing are up year over year. The net revenue yield — cruise revenues minus expenses divided by available berths times days of operation — is expected to increase from between 5.5% to 6.5%.

That’s not to say the company has been completely immune from the economy’s woes: Growth in on-board spending on its mainstream lines catering to the middle classes has slowed as guests have become more cautious, Arison says. In other words, if travelers splurge on a shore excursion, they are more likely to refrain from springing for on-board spa treatments or arts-and-crafts souvenirs.

Carnival has responded to the conditions by reducing capacity in the Caribbean, its largest region, which has helped its pricing in that market. At the same time, the company has shifted more capacity to Europe, where there is strong demand from the new moneyed classes in Asia and Russia for affordable dollar-based European cruises. Carnival’s Mediterranean business is up 20% for the second year in a row. Americans also benefit from the European cruises because they don’t feel the pinch of the negative exchange rate.

In general, all-inclusive cruise vacations can be 20%-30% less expensive than vacations on land. That’s why Carnival expects more cost-conscious consumers to consider cruises rather than forgoing a vacation altogether. Families clearly are finding that cruises offer good value and choice: More than a million children now cruise every year, according to the Cruise Lines International Association.

More than anything, Arison blames higher fuel prices for the softness in Carnival’s share price. The company estimates fuel costs will rise by $532 million in 2008 over fiscal 2007’s, reducing full-year earnings by 65 cents a share. A few weeks ago, Carnival reported better than expected earnings for the first quarter but cut its full-year guidance to between $3 a share and $3.20 a share from previous expectations of $3.10 to $3.30 a share, largely because of skyrocketing fuel prices.

To offset the impact somewhat, Carnival has begun handing customers a $5-a-day fuel surcharge. That was set when fuel was about $85 a barrel and it is likely to rise, Arison says, if oil persists above the $100-a-barrel mark. (Just last week Carnival settled with the Florida attorney general’s office and agreed to pay $40 million in refunds to customers who were charged the fuel fee even though they booked their trips before Carnival’s policy took effect on Feb. 1.) On the bright side, Carnival will see immediate relief if oil prices drop, because it doesn’t hedge its fuel costs.

In general, the cruise industry is less cyclical than is commonly assumed. With customer satisfaction high, more and more cruise-goers are repeat customers, and they tend to be more profitable as they pay up for nicer cabins and other amenities. Carnival’s chief rival, Royal Caribbean Cruises (RCL), recently reiterated its first-quarter and full-year guidance, citing industry resiliency despite pressures from the North American economy. While both stocks are attractive, Carnival is generally considered to have the better brands, a stronger international business, more-efficient operations and a stronger balance sheet. Carnival also has far greater market share — 50% to Royal Caribbean’s 25%.

Carnival is an “extremely compelling” and “timely” investment, according to Wendy Trevisani, portfolio manager of the Thornburg International Value fund, which owns about 4% of Carnival shares. The stock’s valuation is “really, really cheap,” she says, and the fundamental outlook for the company is quite positive. Bookings and pricing are up solidly, she adds, and Carnival consistently posts 20% profit margins. She sees the stock hitting the low 60s by 2010, based on 2009 earnings of $4 a share and a price/earnings multiple of 15 or 16. That would be a move of 50%.

The company’s 3.8% dividend yield only adds to the appeal, along with the possibility of continued share buybacks under the company’s $1 billion authorization program. Arison says Carnival expects to “buy back opportunistically” under the repurchase program but will do so in the context of maintaining the company’s A-minus credit rating, a critical consideration in today’s financial markets.

Something else to note: Carnival enjoys a huge tax-advantage by being domiciled in Panama City, paying no corporate tax to the U.S.

“At this point, we own it big,” says Mark Giambrone, portfolio manager at Barrow, Hanley, Mewhinney & Strauss, a Dallas-based investment manager with more than $50 billion in assets, says of Carnival. The firm started buying Carnival shares heavily last fall as the stock started to rebound from some tough years in its Caribbean business; it was hit hard by the hurricane season of 2005 and the ravages of Katrina and Wilma. The hurricanes devastated ports in New Orleans, Cozumel and Grand Cayman as well as Galveston, Tampa and Mobile, wreaking havoc on pricing and itineraries.

Another investment draw is the potential for industry growth. Cruising is still a vastly underpenetrated market over all, but especially in Europe and Asia — though it is growing fast. Only about 17% of the total U.S. population has ever cruised and the figure is less than half that for Europeans. Then, too, there’s the pent-up demand that Cuba represents should that market open up.

Carnival has the most international exposure of any cruise company, and its brands are among the most recognizable in the world, ranging from those with mass-market appeal such as Carnival Cruise Lines, Princess Cruises and Costa to premium brands such as Holland America Line and luxury lines such as Cunard, which operates such storied ships as the Queen Mary 2 and the Queen Elizabeth 2, and the Yachts of Seabourn.

Demographics are in Carnival’s favor, too, as droves of baby boomers are reaching retirement age and increasingly choosing convenient, affordable cruises as a way to travel.

Ultimately, it’s hard not to like the leading company in an industry now considered to be a duopoly. Apollo Group, a leveraged-buyout firm that owns Norwegian Cruise Lines and Seven Seas, among others, follows Carnival and Royal Caribbean with a 15% share of the cruise industry.

In past downturns, Carnival seized on others’ weaknesses to make strategic acquisitions. This time, sizable acquisitions are unlikely because of anti-trust concerns. “The industry has pretty well consolidated,” says Arison.

Instead, Arison will be focused on what he does best: running a tight ship. That’s good news for shareholders, and times like this typcially have been great buying opportunities for Carnival shares. After falling 40% in the days after 9/11, the shares regained most of the lost ground by year end and surged to new highs by March 2002.

It looks like time to get on board once again.

2:23 PM Eastern Daylight Time Apr 08, 2008
Daily Traffic to Site Has Increased 55 Percent Over Past Month

MIAMI, April 8, 2008 /PRNewswire-FirstCall/ — The blog of Carnival Cruise Lines’ Senior Cruise Director John Heald continues to set new milestones, with the number of total hits approaching two million and daily visitors increasing 55 percent over the past month. Heald’s blog can be accessed via http://www.carnival.com or http://www.johnhealdsblog.com.

The dramatic increase in traffic can be attributed to interesting and entertaining new postings focusing on Carnival’s upcoming European and Alaska cruise seasons, as well as additional exposure through various cross- promotional opportunities.

The new content includes Heald’s humorous account of his recent trips to Denmark and Finland to research shore excursion choices for the new Carnival Splendor’s inaugural Northern Europe cruises this summer, and a daily journal from Chris Roberts, cruise director aboard the Carnival Spirit, who offers his own unique perspective in preparing for the vessel’s Alaska program that kicks off in May.

Through their on-line postings, Heald and Roberts not only provide readers with valuable information on two highly attractive and popular “Fun Ship” cruise destinations but also keen insight into the countless hours of work that takes place behind the scenes in creating fun and exciting landside experiences for Carnival guests.

“Over the past few months I have tried to include new features such as Chris Roberts’ unique and colorful insights into Alaska, which has been very well received by readers. I am flabbergasted by the continued popularity of the blog and plan on writing for a long time to come. Thanks to everyone who takes their valuable time to have a look at my thingy every day,” Heald said.

Originally launched as part of the Carnival Freedom’s inaugural European cruise season, Heald’s engaging personality and candid commentary proved so popular that he continued writing the blog, which celebrated its one-year anniversary last month.

Heald has posted near-daily reports while traveling through Europe in preparation of the arrival of the Carnival Splendor. He will serve as that ship’s senior cruise director throughout its Northern Europe, Mediterranean and Caribbean programs.

Within the blog, Heald regales readers with entertaining and often poignant stories about the people and places he comes in contact with on a daily basis, all with his offbeat wit and deadpan humor.

The popularity of the blog has led to the second annual “John Heald’s Bloggers Cruise” aboard the Carnival Fantasy from New Orleans

Feb. 7-12, 2009, which looks to match the success of the first Bloggers Cruise earlier this year that attracted more than 800 of Heald’s most ardent fans.

Carnival Cruise Lines, a unit of Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK), is a proud member of the exclusive World’s Leading Cruise Lines. Our exclusive alliance also includes Holland America Line, Princess Cruises, Cunard Line, Costa Cruises, and The Yachts of Seabourn. Sharing a passion to please each guest, and a commitment to quality and value, our member lines appeal to a wide range of lifestyles and budgets. Together, we offer exciting and enriching cruise vacations to the world’s most desirable destinations.

Great pictures today and i really enjoyed Bubba’s commentary. Those tours look absolutely amazing.

Keep up the great work and hope all is well!

Thanks,
David