Carnival Cruises 2012 Annual Report Download - page 103

Table of Contents
Results of Operations
We earn substantially all of our cruise revenues from the following:
• sales of passenger cruise tickets and, in some cases, the sale of air and other transportation to and from airports near our ships’ home ports and
cancellation fees. The cruise ticket price includes accommodations, most meals, some non-alcoholic beverages and most onboard entertainment. We also
collect governmental fees and taxes from our guests, and
• sales of goods and services primarily onboard our ships not included in the cruise ticket price including, among other things, liquor and some non-
alcoholic beverage sales, shore excursions, casino gaming, gift shop sales, photo sales, full service spas, communication services, cruise vacation
protection programs and pre- and post-cruise land packages. These goods and services are provided either directly by us or by independent
concessionaires, from which we receive either a percentage of their revenues or a fee.
We incur cruise operating costs and expenses for the following:
• the costs of passenger cruise bookings, which represent costs that are directly associated with passenger cruise ticket revenues, and include travel agent
commissions, air and other transportation related costs, governmental fees and taxes that vary with guest head counts and related credit card fees,
• onboard and other cruise costs, which represent costs that are directly associated with onboard and other revenues, and include among other things, the
costs of liquor and some non-alcoholic beverages, costs of tangible goods sold by us in our gift shops and from our photo sales, communication costs,
costs of cruise vacation protection programs, costs of pre- and post-cruise land packages and related credit card fees. Concession revenues do not have
significant associated expenses because the costs and services incurred for concession revenues are borne by our concessionaires,
• fuel costs, which include fuel delivery costs,
• payroll and related costs, which represent all costs related to our shipboard personnel, including deck and engine crew, including officers, and hotel and
administrative employees,
• food costs, which include both our guest and crew food costs, and
• other ship operating costs, which include port costs that do not vary with guest head counts, repairs and maintenance, including minor improvements
and dry-dock expenses, hotel costs, entertainment, freight and logistics and all other ship operating costs and expenses.
For segment information related to our North America and EAA cruise brands’ revenues, expenses, operating income and other financial information, see
“Note 12 – Segment Information” in the accompanying consolidated financial statements.
Statistical Information
Years Ended November 30,
2012 2011 2010
Passengers carried (in thousands) 9,829 9,559 9,147
Occupancy percentage (a) 105.5% 106.2% 105.6%
Fuel consumption (metric tons in thousands) 3,354 3,395 3,319
Fuel cost per metric ton consumed $710 $646 $ 489
Currencies
U.S. dollar to €1 $ 1.28 $1.40 $1.33
U.S. dollar to £1 $1.58 $ 1.60 $1.55
U.S. dollar to Australian dollar $1.03 $1.03 $ 0.91
(a) In accordance with cruise business practice, occupancy is calculated using a denominator of two passengers per cabin even though some cabins can
accommodate three or more passengers. Percentages in excess of 100% indicate that on average more than two passengers occupied some cabins.
2012 Compared to 2011
Revenues
Consolidated
Cruise passenger ticket revenues made up 76% of our 2012 total revenues. Cruise passenger ticket revenues decreased by $500 million, or 4.1%, to $11.7
billion in 2012 from $12.2 billion in 2011. This decrease was substantially due to a decrease in cruise ticket pricing, which accounted for $434 million, a
stronger U.S. dollar against the euro and sterling, net of a weaker U.S. dollar against the Australian dollar (referred to as “ the net currency impact”), which
accounted for $282 million, and a slight decrease in occupancy percentage, which accounted for $82 million, partially offset by our 2.9% capacity increase
in ALBDs, which accounted for $348 million (see “Key Performance Non-GAAP Financial Indicators”). Our cruise ticket pricing and occupancy were
affected by the direct and indirect consequences of the ship incident and the challenging economic environment in Europe.
F-33