In 2013, RCCL doubled their operating margin from 5% in 2012 to 10%. Royal Carribean’s operating margin was driven by higher yield and occupancy, which shows a demand for the company’s cruises despite higher prices. Carnival Corporation’s operating margin is usually higher than RCCL’s, but there was a drop in occupancy and a fall in yield in 2013. Combined with higher unit costs, the Carnival Corporation’s operating margin dropped from 11% to 9% in 2013 (Overview: Royal Caribbean Cruises, the 2nd largest cruise operator).
Net financial expenses have a significant impact on net margin and earnings per share, and even though RCCL had efficient operations that generated a higher operating margin, its net margin in 2013 was 6% - lower than …show more content…
Norwegian had the highest operating margin of 15.4% in 2013, but net margin was only 4%, lower than Carnival’s 7%. Out of the three market leaders, Norwegian Cruise Lines Ltd. was the only one to experience a growth in net income in the 2011 to 2012 period, though it suffered a 2% drop in passengers transported. Focusing on its tangible offerings, the Norwegian Breakaway offers novelty attractions that include a five-story water slide in its new Aqua Park (Norwegian Cruise Line Holdings Financial Reports First Quarter 2016). The Norwegian Epic information portal, coupled with the Norwegian iConcierge, an app introduced in 2012, allow passengers easy access to bookings, and services and event information. To comply with new anti-pollution regulations applicable to Canada and the US in 2015, ECA 2015, the company will be using scrubbers to lower sulphur emissions (Norwegian Cruise Line Holdings Financial Reports First Quarter 2016). Once ECA 2015 is in effect, many cruise line companies will not be able to afford the premium on low-sulphur fuel and will likely have to leave the US and Canadian markets, which comprise a significant part of global demand. NCL is likely using technology as an opportunity to gain an advantage over its much larger rivals, who are also struggling with ECA …show more content…
Even though charging for accessory services is unwelcome to most, it appeals to passengers who wish to purchase lower costing tickets and still creates opportunities to collect from impulse buying. The downside of such strategies is leaving customers with a bad taste and discourages repeated