apparently, the two companies net profit trend is basically the same, the CCL profits to be higher t

Royal Caribbean ($ Royal Caribbean Cruises (RCL) $) is a Norwegian and , a joint venture cruise company headquartered in Miami, United States. Royal Caribbean (RCL) is the world s second largest cruise company, after the huge scale of Carnival (CCL).
currently RCL company owns five cruise brands, a total of nearly cheap airplane tickets 30 giant cruise ships. Its 60,300 full-time employees. Company Gross (Enterprise Value) 137.3 million. Market value (Market Cap) of $ 5.36 billion.
1969 merger of three Norwegian shipping companies contributed to the establishment of the Royal Caribbean. In 1970 the company conducted its first flight. In 1988 the company acquired the newly established Greek Cruise Line, Celebrity Cruises, will henceforth market position in high-level visitors. Cruise on the recipes from the famous Michelin Samsung guide chef Michel Roux well-designed. 2000 Royal Caribbean to create a third brand Island, Cruises, and continue in the years following the acquisition and establishment of the new brand the acquired company, including the famous Spain Pullmantur Cruises. Carnival Cruise shares
RCL s stock price fell more than 40 percent in the past five years. The economic crisis and rising crude oil prices so that the performance cheap airplane tickets of the company has been a serious blow. The article will first introduce the RCL s business model, and then the Royal Caribbean and Carnival contrast, the cruise industry in order to explore potential investment opportunities.
part of board service and facilities, including swimming pools, restaurants, dance halls, terrace, library and so included in the ticket cheap airplane tickets within. Other services and facilities such as casinos, alcoholic beverages, rock climbing, hot springs, massage Royal Caribbean to other sources of income. The following table shows the two revenue in recent years (Souce: 2011 RCL 10K). Ticket revenue in 11,10,09, cheap airplane tickets respectively, of total revenue 73.3%, 72.7% and 71.4%.
We know that a company s income is often determined by the sales volume and sales prices (Revenue=Unit Price * Units Sold), cruise company is no exception. In order to increase sales, the cruise company is committed to increase the number of passengers, while increasing the per capita spending.
For example, the 2011 RCL s total revenue over the previous year increased by 11.6%, 7.5% of the growth comes from growth in the number of passengers. The following table shows is that Royal Carribbean number of passengers (Souce: 2011 RCL 10K):
can be seen, the patronage of the basic year by year. Although in 2009 the number of passengers is lower than the previous year, the total passenger travel days (Passenger Cruise Days) still increased the previous year. In the sales price, the company obtain additional profits by increasing the ticket prices. At the same time, favorable currency exchange prices also largely affect passengers the price actually paid. In the long run, the growth of the number of passengers and ticket price increases to ensure RCL sales improved steadily, as shown in the table below (Souce: 2011 RCL 10K):
operating expenses (Operating Expenses): due to the cruise ships sailing to bring the cost of fuel, heating and cooling costs, on board facilities maintenance costs, performance fees, catering costs. RCL spending in 11 years, cheap airplane tickets an increase of 10.9% over the previous year
Depreciation (Depreciation Amortization): From an accounting point of view, the cost/acquisition cost of the cruise ships will be assessed cheap airplane tickets in accordance with certain depreciation schedules on the life expectancy of the cruise, known as depreciation. 11 years than the previous cheap airplane tickets year-on-year increase of 9.1%. This growth comes from three recent opening of the new cruise ships, and sell at the same time a cruise ship partly offset by a depreciation expense.
Royal Caribbean total expenditure 11.4% growth in 11 years, basic and income growth to keep pace. The following table details the items of expenditure in the last three years and data: (Souce: 2011 RCL 10K):
cruise company s largest investment option is used to control the oil price risk. By holding a call option, when rising cheap airplane tickets oil prices, cheap airplane tickets the cruise company cheap airplane tickets in the investment benefit to compensate for rising oil prices caused by rising expenses. 11 years RCL
in the too big to fail: Carnival Corporation and the ups and downs of the cruise industry , we have the cruise industry carried out a more comprehensive analysis, a brief summary here. The cruise industry cheap airplane tickets since the 1990s, tended to increase cheap airplane tickets (average cheap airplane tickets annual growth rate of 7%). Although the financial crisis has slowed the growth rate, but the cruise company will still be able to open new short distance cheap airplane tickets routes and the new boat service to maintain growth. The cruise market can be seen as an oligopoly market; high threshold of entering the industry. The cruise industry s outlook is optimistic, first, because the aging of the population trends and characteristics of cruise tourism for the elderly. In addition, the Asian market to rise rapidly, will cruise company is expected to bring substantial revenue growth momentum. The risk of this industry lies in its very sensitive to the economic level, political stability, climate, oil and other uncontrollable cheap airplane tickets factors. In the stable under the premise of these external factors, the cruise industry cheap airplane tickets will undoubtedly cheap airplane tickets keep the growth momentum in the coming decades or even two decades.
very similar to the two company s business model (sources of income and expenditure), the two companies in many ways comparable. Corporate finance (Financials) and Corporate Strategy (Strategies) from outside to inside, progressive approach to the differences and pros and cons of the comparison of two cruise ships, and eventually to compare the two company s stock.
diagram describes some of the indicators of financial health. Leverage point of view, from 2002 so far, RCL consistently higher than of CCL. This regard cheap airplane tickets that the RCL to sustained profitability is quite confident, on the other hand is also reflected in the life cycle is still in the growth stage, the need for large capital investment to expand its own fleet. Two cruise company s current ratio trend. Carnival from 2002 all the way down, in addition to 2005, while RCL was tight, and basic maintenance on a stable level in this indicator, even if its leverage is higher than the CCL.
due to the different sizes of the two companies, the income and expenditure are not strong comparability. However, we see the pros and cons of the two companies profitability by comparing net profit.
apparently, the two companies net profit trend is basically the same, the CCL profits to be higher than the RCL. However, due to leverage, for shareholders, CCL may not have the absolute advantage. From the earnings per share indicator (upper right) to see the two basically the same. Only because of the leverage effect, the RCL s risk is doubled.
cheap airplane tickets influence on market prices, economies of scale (economies of scale), the reputation of reputation and so on. On this indicator, cheap airplane tickets 51.6% market share in Carnival is a clear asset. It must be pointed out that Royal Caribbean 25.6% market share, the same should not be overlooked.
fuel prices on the cruise company s profit is critical, the two companies have taken measures to control cheap airplane tickets the risks of oil floating. Strategy of the two companies cheap airplane tickets is different. Royal Caribbean mainly through the purchase of call options to control risk. When oil prices rise, the proceeds of the option will offset the loss of part of the increase in expenditure. Carnival is through the development of the contract, the provisions just in a price range to pay the purchase of fuel.
due to differences in leverage, profitability, risk control and other aspects, the two company s stock in the trend is similar to but there are significant differences in the up and down adjustment. The following cheap airplane tickets figure shows the trend of the two stocks in the last five years, the blue line is the RCL, the red line is of CCL, while the green line is the industry average (Source: Yahoo Finance):
Royal Caribbean as the world s second largest cheap airplane tickets cruise cheap airplane tickets company, even in the face of market leader Carnival also has its own unique strategic advantage. First of all, RCL opened more routes than the Carnival an advantage, especially in the Caribbean, East Asia, South America and the Middle cheap airplane tickets East. RCL s board entertainment experience in a leading position in the cruise industry, customer response and even more than Carnival. RCL cruise ship clean, facilities, hardware behind Carnival, software, crew service attitude, compared with Carnival favorably. Financial RCL maintain a healthy cheap airplane tickets liquidity. High leverage cheap airplane tickets increases the risk of the company, but also in the market in good condition when additional benefits to shareholders. RCL of fluctuations in stock prices, suitable for risk-bearing ability of investors. Between increasing prosperity cruise industry still time, and the current form of the global economy is still uncertain, short-term speculative operations on the RCL of the purchase price needs to be extra cautious. Profit-sharing ratio of the Carnival may be desirable investment options. In the long run, the RCL can find a way to maintain their strategic advantage not to be copied by competitors, and can be effectively improved the profit model, not only through cheap airplane tickets high leverage to try to catch up with Carnival s return on equity,
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