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Takeaway: Carnival may not be sourcing as much from North America as previously thought

Chart Of The Day: Analysis of Carnival's revenue by source market in 2014

  • Digging into CCL's 10K, we found that sourcing from Europe actually accounted for a greater proportion of CCL's revenues in 2014 vs 2013 - 36.7% of revenues came from the European source markets in 2014, up 1.6 points from 2013.
  • Better European pricing vs poor Caribbean pricing in 2014 had some impact but this was still a surprise as it suggests sourcing inflexibility in Europe. 
  • CCL had a strong performance in Europe thanks to Costa in 2014. CCL's European capacity on an ALBD basis decreased 2% points YoY in 2014.
  • Out of the 3 major cruise lines, Carnival Corp maintains the highest exposure to the European consumer given its large fleet of ships. The chart below suggests that Carnival Corp is even more reliant on the European consumer and if demand trends deteriorate there in 2015, it could have an outsized effect.