Down 80%, Is Carnival Stock a Once-in-a-Generation Investment Opportunity? The Motley Fool

Table Of Content

• What can you use your OBC (Onboard Credit) for?
• Cruise Line Shareholder Benefits
• Big Benefit of Booking a Cruise a Year in Advance (That Most Overlook)
• Construction on Second Chinese-Built Cruise Ship Well Underway
• What’s the biggest perk of onboard credit through stock ownership?
• Applying for free onboard credit as a Carnival shareholder

The duration of the cruise on a single booking number determines voyage length for Shareholder Benefit OBC purposes. As Princess often sells multiple distinct voyages bundled together as one voyage, it behooves shareholders to consider differences in Shareholder Benefit OBC during the booking process. In order to claim your Carnival shareholder benefits for a Princess cruise, you need to provide a number of details either to the cruise line, and you have to do so no later than four weeks before you sail. The Carnival webpage instructs me to send proof of share ownership to Princess Cruises, along with a Santa Clarita, CA address and phone number. I can't imagine calling them up or writing them a snail letter. Proof of stock ownership must be provided to Norwegian at least 15 days prior to the sailing date and this can be done through mail or email.

What can you use your OBC (Onboard Credit) for?

Cruise lines will only give out shareholder benefits to one person in the cruise cabin, even if more than one person own cruise line stock. If you’re booking more than one cabin, split up the passengers so you can get double the credits. Once onboard you can switch cabins – this is done often by cruisers. All shareholder requests must be received at least 15 days prior to the sail date.

Cruise Line Shareholder Benefits

We are now good for cruise booked thru February 28, 2013 and sailing thru July 31, 2013. The date thing is because the benefit is authorized annually at the shareholder conference and can't be authorized for longer than a year. As long as it's been authorized (as it has been for the past 30 years or so) you'll be good to go, even if you book and sail in different authorization periods. If you sail with the North American brands, you’ll receive an on board credit in USD. However, if you sail with one of the Europe, or Australia brands, the OBC will be in the currency that is used on board.

Big Benefit of Booking a Cruise a Year in Advance (That Most Overlook)

The credit cannot be exchanged for cash and cannot be used in casinos or applied to gratuities onboard. We just give the statement (unneccessary info blocked out) to our TA and she takes care of it. Requesting a copy of exceptance to carry with us when boarding. It’s unclear whether this is a permanent policy change by Carnival Corporation, or just a temporary hold while ships are sailing at reduced capacity. I’ll continue to update the post as more information emerges on this new development. But if you want to share your credit with friends or family, you can always use it to buy a gift on board for a friend or loved one.

What Are the Benefits of Owning Cruise Line Stocks?

I don't believe this is a once-in-a-generation investment opportunity. It's easy to say this with the benefit of hindsight, but I don't necessarily think it's shocking to see Carnival putting up such strong numbers right now. Unless you were convinced that demand for cruise travel would permanently fall off a cliff, I bet you expected that this business would experience a reversion to the mean. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. We recently had an extended time from submittal, and when phoning for status, they were able to locate the FAX submission by date and timestamp noted on my transmission receipt.

Norwegian Cruise Line Holdings Ltd

Since the restart, requests have taken anywhere from hours to weeks to be worked. When there is a backlog, requests are prioritized by sailing date. As of March 2023,  North American requests have been processing within a few business days, but this is, again, subject to change. Usually, a revised Booking Confirmation is sent by email that includes the Shareholder Benefit OBC.

Construction on Second Chinese-Built Cruise Ship Well Underway

I say "supposed to" because I have been difficulty getting it for our upcoming cruise on the Grand. In other words, once you prove you own the stock in Carnival the onboard credit is applied to the cabin you are staying in. In order to receive the onboard credit you have to ask for it and prove you own shares in the company.

The credit can't be used for gratuities (service charges). It also doesn't apply to any activities you pay for prior to setting sail (such as prebooked shore excursions or spa treatments). It's credited to your shipboard account at the time of sailing. When I’m planning my next cruise within the Carnival Group, it’s important to keep in mind that the credit amounts for Australian, UK, and European cruises may differ from those for American cruises. As a shareholder in Carnival Corporation, I have access to benefits on any cruise line within the group, including Princess Cruises. However, before booking my next voyage, I need to compare the credit amounts for different destinations to maximize my benefits.

They also can’t be used in the casino or to pay for gratuities. To receive the credit, first book your cruise vacation, then send the specific cruise line an email, fax or mailed letter with your legal name, reservation/booking number, ship and sailing date. You'll also need to provide proof — such as a copy of your proxy card or a dividend tax voucher — that you own 100 or more shares of stock. Owning cruise line shares is a great way to get additional on board credits and save money on your cruise. If you enjoy cruising and plan to continue to cruise in the future, the shareholder benefits are a nice perk of stock ownership.

A small investment in a cruise company may pay off in more ways than you think, especially if you are a frequent cruiser. Buying the stocks requires a brokerage account, but online brokerage sites like E-Trade, Fidelity and TD Ameritrade are options if you don't already have a stockbroker. Some banks, like Capital One and Wells Fargo, also offer investment services from their own online portals.

That’s what we did & SOBC was quickly issued & have never received an email acknowledgment. Princess Cruises announces several changes to the onboard credit programs, affecting Carnival shareholders and military members. With 3 cruise companies to choose from you can lock in some onboard credit just for owning a certain amount of shares in one of these companies. I have read so much about faxing and e-mailing (not all good!) that I sent our information in by snail mail for our December cruise. I talked with a Princess rep yesterday re our April sailing, and she said they really appreciate receiving these requests by snail mail.

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As a shareholder, I can use these benefits to help pay for meals or drinks during a voyage. It’s important to note that benefits are per stateroom and cannot be combined with other shipboard offers. Stock ownership requirements must be met, and shareholders need to provide details to the cruise line no later than four weeks before sailing. This includes legal name, booking number, ship and sailing date, and proof of stock ownership. A screenshot from the investing platform showing ownership can be used as proof. It’s quite simple to redeem your cruise stock shareholder benefits for your cruise vacation.

You’ll want to do your own due diligence which may include talking with a financial advisor. However, I will go over how cruise line shareholder benefits work and how you can take advantage. The benefit is only available for the stateroom in which the shareholder is staying and is based on your paying for two people in the cabin.

To qualify for benefits as a shareholder in Carnival Corporation on Princess Cruises, a minimum of 100 shares must be owned. Benefits include onboard credit, which varies based on the length of the cruise, and can help pay for meals or drinks during a voyage. However, it’s important to keep in mind that benefits are not transferable and cannot be used in the casino or to pay for gratuities. By understanding the stock ownership requirements and following the necessary steps to claim benefits, shareholders can truly maximize their cruising experience.

We've got the rundown of the benefits offered per cruise line and how to get the stocks, plus how and when to snag the credit. Princess Cruises sent a letter on June 15 to shareholders and military members announcing several changes to how the onboard credits they are eligible for can be applied. The change is effective from June 29, for all voyages departing on or after that date. Hopefully I don't have a problem because my brokerage statement does not have our name on each page, only the account number. I sent the cover page with our names and the page that shows we own the stock and blacked out all but the last 4 digits of the account number on both pages.

It only took three minutes from application time to receipt of confirmation email and OBC showing up on My Princess website for each cruise. While you won’t get free burgers for owning stock in McDonald’s, own enough shares of your favorite cruise line, and you’ll receive onboard credit when you set sail. Navigating stockholder benefits on Princess Cruises can be tricky. While blackout dates and restrictions apply, eligibility requirements are straightforward. Cancellation policies vary, and the redemption process requires proof of stock ownership.