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    Royal Caribbean reports good year in Alaska

    AP – Fri, Oct 28, 2011

    JUNEAU, Alaska (AP) — One of the biggest cruise lines operating in Alaska said it set a new record for operations in the state this past summer.

    The Royal Caribbean Cruises cited Alaska and the Caribbean as major bright spots that drew more attention than expected this year, The Juneau Empire (http://bit.ly/vwIqAx) reported.

    While the company did not release Alaska-specific financial figures, its chief financial officer, Brian Rice, told investors and analysts in a conference call Thursday that Royal Caribbean's net yields in Alaska were the highest in the company's history.

    The net revenue yield is a measure of profitability per passenger, after some associated costs are subtracted. It is a key measure used by the industry.

    Miami-based Royal Caribbean is the second-largest cruise line operating in Alaska. Its ships include those under its own name and Celebrity Cruises.

    It was the first company to report results for the full summer cruise season, which ended in September. The company said it expected another strong year in Alaska next year.

    The president of the Alaska Cruise Association, John Binkley, said last month that preliminary figures suggested there were fewer passengers to the state than last year. But that figure doesn't necessarily reflect how well the lines did, and Binkley said anecdotally that lines appeared to have performed better from a margin standpoint.

    Richard Fain, Royal Caribbean's chairman and CEO, said yields in Alaska and the Caribbean each increased by more than 15 percent.

    The company cited areas where it struggled, including Mediterranean Sea countries where political revolt and financial instability have resulted in fewer sailings and lower profits. Royal Caribbean said Alaska seems to have benefited from the move away from those areas.

    Royal Caribbean also said that in North America, it saw increased spending by passengers in its "onboard and other" category, which includes alcohol purchased on the ship and tours booked through the ship. Such spending was lower among European travelers, it said.

    ___

    Information from: Juneau Empire, http://www.juneauempire.com

     

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