A berth for a Carnival Corp. brand is worth more than one for Royal Caribbean Cruises Ltd. brand, according to the results of a report issued by UBS investment bank.
UBS analyst Robin Farley said that in 2007 a Carnival berth was worth $14 to $15 more in operating income than an RCCL berth. According to the report, Carnival berths are worth $49.31, while RCCL’s are worth $33.90.
The results indicate that “a berth is worth more in the hands of a management that has historically outperformed,” Farley wrote, noting that the profit per berth gap between Carnival and RCCL was the same in 2003.
Both cruise companies have experienced a decline in operating income per berth since 2004, when Carnival’s was $49.38 and RCCL’s was $35.15.