Carnival Cruises 2009 Annual Report Download - page 45

Gross and net cruise costs per ALBD were computed by dividing the gross or net cruise costs, without
rounding, by ALBDs as follows:
Years Ended November 30,
2009
2009
Constant
Dollar 2008
2008
Constant
Dollar 2007
(in millions, except ALBDs and costs per ALBD)
Cruise operating expenses .......... $ 7,868 $ 8,200 $ 8,746 $ 8,667 $ 7,332
Cruise selling and administrative
expenses ..................... 1,558 1,625 1,594 1,576 1,547
Gross cruise costs ................ 9,426 9,825 10,340 10,243 8,879
Less cruise costs included in net cruise
revenues
Commissions, transportation and
other ..................... (1,917) (2,050) (2,232) (2,201) (1,941)
Onboard and other ............ (461) (481) (501) (498) (495)
Net cruise costs .................. $ 7,048 $ 7,294 $ 7,607 $ 7,544 $ 6,443
ALBDs ........................ 62,105,916 62,105,916 58,942,864 58,942,864 54,132,927
Gross cruise costs per ALBD ....... $ 151.76 $ 158.20 $ 175.43 $ 173.78 $ 164.02
Net cruise costs per ALBD ......... $ 113.48 $ 117.45 $ 129.06 $ 127.98 $ 119.03
Net cruise revenues decreased $1.0 billion, or 8.9%, to $10.5 billion in 2009 from $11.5 billion in
2008. This was caused by a $1.6 billion, or 13.6%, decrease in net revenue yields in 2009 compared to 2008
(gross revenue yields decreased by 14.3%). This decrease was partially offset by a 5.4% increase in ALBDs
between 2009 and 2008 that accounted for $618 million. The net revenue yield decrease in 2009 was primarily
due to the adverse impact of the economic downturn on our cruise ticket pricing and onboard and other revenues,
as well as the impact of a stronger U.S. dollar against the euro and sterling compared to 2008. In addition, the
CDC’s recommendation against non-essential travel to Mexico as a result of the flu virus also adversely impacted
our net revenue yields as previously discussed. Net revenue yields as measured on a constant dollar basis
decreased 9.8% in 2009 compared to 2008, which was comprised of a 10.6% decrease in passenger ticket yields
and a 6.8% decrease in onboard and other revenue yields. Gross cruise revenues decreased $1.4 billion, or 9.7%,
to $12.9 billion in 2009 from $14.3 billion in 2008 for largely the same reasons as discussed above for net cruise
revenues.
Net cruise costs decreased $559 million, or 7.3%, to $7.0 billion in 2009 from $7.6 billion in 2008. This was
caused by a $967 million decrease in net cruise costs per ALBD, which decreased 12.1% in 2009 compared to
2008 (gross cruise costs per ALBD decreased 13.5%). This decrease was partially offset by the 5.4% increase in
ALBDs between 2009 and 2008 that accounted for $408 million. The 12.1% decrease in net cruise costs per
ALBD was primarily the result of a 34.9% decrease in fuel price to $363 per metric ton in 2009, which resulted
in a decrease in fuel prices of $621 million, the stronger U.S. dollar against the euro and sterling and $92 million
of fuel consumption savings compared to 2008. Net cruise costs per ALBD as measured on a constant dollar
basis decreased 9.0% in 2009 compared to 2008. On a constant dollar basis, net cruise costs per ALBD excluding
fuel were flat compared to 2008 primarily due to the impact of cost containment initiatives. Gross cruise costs
decreased $914 million, or 8.8%, in 2009 to $9.4 billion from $10.3 billion in 2008 for largely the same reasons
as discussed above for net cruise costs, as well as the reduction in travel agent commissions as a result of lower
cruise ticket prices.
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