Carnival’s contemporary, premium, and luxury cruises

Cruise liners have been successfully providing a wide range of products and services at various price points to suit preferences of passengers from different age groups.

Service levels and pricing differ by brand, category of the ship, cabins, season, duration, and itinerary. We can categorize cruise brands into these three categories: contemporary, premium, and luxury cruises.

Here’s a rundown of those three categories.

• Contemporary cruises are designed for value-packed vacations. They target passengers of all age groups who are looking for a lot of activities. The size of the ship is generally large with a lot of space for entertainment, sports, spa facilities, dining options, and more. These ships are family-friendly. Each cruise line and brand offers distinct services and features. These cruises are less expensive than premium and luxury cruises. The duration of the cruise is shorter, generally up to seven days. Carnival Corporation (CCL), Royal Caribbean Cruises Ltd. (RCL), and Norwegian Cruise Line Holdings Ltd. (NCLH) offer the world’s three largest contemporary cruise brands.

• Premium cruises emphasize more quality, comfort, and style. Thus they’re more expensive than contemporary cruises. The duration of the cruise is generally seven to 14 days. Holland America, Princess Cruises, and Celebrity Cruises are some of the premium brands Carnival Corporation (CCL) offers.

• Luxury cruises offer the highest level of services and quality. They’re the most expensive of the three categories. The accommodations and services are at a very high standard, and the ship size is smaller. The cruise includes exotic itineraries that are not accessible to large ships. Duration of the cruise is longer than premium or contemporary cruises. Seabourn and Cunard are examples of luxury brands that Carnival Corporation (CCL) offers.

In the next couple of articles, we’ll talk more about the distinct features of Carnival’s brands.

Investors can invest in shares of cruise liners through the PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ), the PowerShares Dynamic Large Cap Growth Portfolio (PWB), and the Consumer Discretionary Select Sector SPDR Fund (XLY).