(Reuters) -Carnival Corp raised its annual forecast for profit, betting on strong demand and higher onboard spending as well as ticket pricing for its cruise vacations.
Cruise operators, including Carnival Corp and rival Royal Caribbean Group, have been racing to offer unique and private experiences by expanding their portfolio to meet strong demand for exclusive destinations.
Carnival has invested $600 million in Celebration Key, an ambitious private resort destination on Grand Bahama, to help maintain its competitive edge.
Bundled packages offering perks such as drinks, Wi-Fi, and excursions have encouraged guests to spend more onboard, further boosting revenue for the cruise lines.
Shares of the company were up nearly 5% in premarket trading.
The company forecast fiscal 2025 adjusted earnings per share of about $2.14, up from its prior expectations of about $1.97.
The cruise operator logged sales of $8.15 billion for the third quarter ended August 31, compared with analysts’ estimates of $8.10 billion according to data compiled by LSEG.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Krishna Chandra Eluri)
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