Carnival Cruises 2010 Annual Report Download - page 48

North America Brands
Approximately 75% of 2009 total revenues are comprised of cruise passenger ticket revenues. Cruise passenger
ticket revenues decreased by $825 million, or 12.3%, to $5.9 billion in 2009 from $6.7 billion in 2008. This
decrease was caused by lower pricing due to the impact of the economic downturn partially offset by our 3.9%
capacity increase in ALBDs, which accounted for $258 million. In addition, the CDC’s recommendations against
non-essential travel to Mexico as a result of the flu virus also adversely impacted our revenues because we had to
alter several of our cruise ships’ itineraries.
The remaining 25% of 2009 total revenues is principally comprised of onboard and other cruise revenues, which
decreased $126 million, or 6.1%, to $2.0 billion in 2009 from $2.1 billion in 2008. This decrease was driven by
lower onboard spending by our guests primarily as a result of the impact of the economic downturn. Our onboard
and other revenue decrease was partially offset by our 3.9% capacity increase in ALBDs, which accounted for
$80 million. Onboard and other revenues included concession revenues of $589 million in 2009 and $619 million
in 2008.
EAA Brands
Approximately 84% of 2009 total revenues are comprised of cruise passenger ticket revenues. Cruise passenger
ticket revenues decreased $398 million, or 8.3%, to $4.4 billion in 2009 from $4.8 billion in 2008. This decrease
was caused by the impact of the stronger U.S. dollar against the euro, sterling and Australian dollar compared to
2008, which accounted for $530 million and lower pricing primarily due to the impact of the economic downturn,
which were partially offset by our 8.2% capacity increase in ALBDs, which accounted for $397 million.
The remaining 16% of 2009 total revenues is comprised of onboard and other cruise revenues, which decreased
$35 million or 3.9%, to $853 million in 2009 from $888 million in 2008. This decrease was primarily because of
the impact of the stronger U.S. dollar against the euro, sterling and Australian dollar, which was partially offset
by our 8.2% capacity increase in ALBDs, which accounted for $73 million. Onboard and other revenues included
concession revenues of $291 million in 2009 and $304 million in 2008.
Costs and Expenses
Consolidated
Operating costs and expenses decreased $933 million, or 10.0%, to $8.4 billion in 2009 from $9.3 billion in
2008. This decrease was primarily due to lower fuel prices of $621 million, the impact of the stronger U.S. dollar
against the euro, sterling and Australian dollar, decreased commissions as a result of our lower ticket revenues
and lower fuel consumption, resulting from fuel saving initiatives. This decrease was partially offset by our 5.4%
capacity increase in ALBDs, which accounted for $485 million.
Selling and administrative expenses decreased $39 million, or 2.4%, to $1.6 billion in 2009. The decrease was
primarily caused by the stronger U.S. dollar against the euro, sterling and Australian dollar and the impact of cost
containment initiatives, partially offset by our 5.4% capacity increase in ALBDs, which accounted for $86
million.
Depreciation and amortization expense increased $60 million, or 4.8%, to $1.3 billion in 2009 from $1.2 billion
in 2008, caused by $67 million from our 5.4% capacity increase in ALBDs through the addition of new ships,
and additional ship and other improvement expenditures, partially offset by the impact of the stronger U.S. dollar
against the euro, sterling and Australian dollar and disposals.
Our total costs and expenses as a percentage of revenues increased to 84.0% in 2009 from 81.7% in 2008.
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