Page 12: of Maritime Logistics Professional Magazine (Q1 2013)

Insightsto general economic malaise as a concern. S & P explained: ?We believe that the cruise sector has, to a large extent, re- covered from the impact of the Costa Concordia grounding and should experience a low-single digit next yield growth in 2013, although the Eurozone recession remains a key risk factor.? The S&P report added that both Royal Caribbean and NCL Corporation (who round out the ?Top Three? in the in- dustry?s league tables) ?? have reported that 2013  eet-wide bookings are pricing higher compared to this year?s (2012) bookings, and pricing remains strong across the industry for Caribbean itineraries. The companies themselves have offered upbeat expecta- tions, buttressed by the predominant position of the relatively stronger Caribbean segments compared to the more trouble- some European businesses. On Carnival?s late December 2012 conference call with investment analysts, its Chairman, Micky Arison, told investors, ?I think we?ve been consistent in saying that recovery at Costa is not a one-year issue. It?s go- ing to be multiple years. And we?re forecasting a recovery of about half the yield deterioration.? In its previous quarter, Car- nival?s earnings release had explained that, ?For the remainder of the year and  rst half of 2013, cumulative advance book- ings excluding Costa are still behind the prior year at slightly lower prices. For Costa, cumulative advance bookings have shown considerable improvement but are still  ve occupancy points behind the prior year at lower prices over the same pe- riod.? Costa is important for Carnival, but it is also part of a diversi ed portfolio. For 2013, Carnival was forecasting that its business program was expected to be 19% in the Mediter- ranean, and 12% in Europe (outside the Med). By mid 2013, two Costa vessels (Costa Atlantica and Costa Victoria) were expected to be deployed in the burgeoning Asian markets, of- Photo Credit: Port of Miami( The vibrant cruise market continues to dominate the Miami landscape.12 I Maritime Professional I 1Q 2013MP #1 1-17.indd 12MP #1 1-17.indd 122/25/2013 11:55:48 AM2/25/2013 11:55:48 AM