Tag Archives: Carnival Corporation

FEMA Carnival Charter Cost $74.7 Million

Posted on by
Reply
Carnival Fascination

The Federal Emergency Management Agency’s (FEMA) charter of the Carnival Fascination will cost the agency $74.7 million, according to the contract between FEMA and Carnival Corporation, which was obtained by Cruise Industry News through a Freedom of Information Act (FOIA) request.

The ship was chartered to provide housing for relief staff in the United States Virgin Islands following a number of hurricanes in September.

The charter period runs from October 11, 2017, to February 3, 2018, at a cost of $39.7 million, while a separate provision for port costs and other vessel costs comes in at $35 million, totalling $74.7 million.

By comparison, a 116-day operating period for the 2,056-guest Carnival Fascination would have resulted in gross revenue of approximately $44.2 million (versus the $39.7 million for the charter), calculated using gross revenue per passenger day reported by Carnival Corporation in the fourth quarter of 2016 and analyzed by Cruise Industry News.

By comparison, FEMA chartered the Grand Celebration in a similar deal for $25.8 million. 

The contract stipulates Carnival will provide three hot and cold buffet meals per day as well as drink availability (water, coffee, tea, juice) between meals. Staterooms will be cleaned on a weekly basis. In addition, Carnival will provide access to public spaces for FEMA personnel.

The separate $35 million line item includes docking and port fees in San Juan, various logistics provisions, waste removal, fuel costs, incremental costs related to crew compensation, and the “refurbishment of the ship at the end of the charter period to bring the ship to the same standards as the beginning of the charter period.”

Carnival Corporation expects revenue to rise by 2.5% in 2018

Posted on by
Reply

Related image
Carnival Horizon being constructed and due next year.

Carnival Corporation has announced a $2.6billion net income for the full year of 2017.

Revenues for 2017 were $17.5billion – $1.1billion higher than the $16.4billion in 2016.

Carnival said in its annual report that it expects 2018 revenue yield to be up 2.5% compared to this year.

Bookings across the world’s largest travel company for 2018 have been running well ahead of the prior year at higher prices, Carnival said.

Carnival’s president and chief executive officer Arnold Donald said that despite booking disruptions from this year’s hurricanes, the company was heading into 2018 with a stronger base of business and higher prices than last year.

Donald said: “We have numerous efforts underway to keep the momentum going in 2018 and beyond, from our innovative approaches to increased consideration for cruising, to the further roll-out of our state-of-the-art revenue management system.

“In 2018 we also look forward to the delivery of four new cutting-edge ships, Carnival Horizon, Seabourn Ovation, AIDAnova, and Nieuw Statendam to further our strategic fleet enhancement program.”

Disruptions to voyages caused by hurricanes reduced fourth quarter earnings by approximately $0.11 per share.

Carnival Corp. to proceed cautiously with Ocean Medallion

Posted on by
Reply
Arnold Donald, left, with Travel Weekly’s Arnie Weissmann at CruiseWorld. Photo Credit: Creative FocusFORT LAUDERDALE — Carnival Corp. is taking a slow approach to introducing Ocean Medallion technology, making sure it works right and is delivering the services that customers really want, CEO Arnold Donald said Friday at Travel Weekly’s CruiseWorld.

Speaking to travel agents at the conference, Donald said the technology is so transformational that Carnival Corp. doesn’t want to create a future shock for past passengers.

The Ocean Medallion is a wearable disc that can be worn as a pendant, wristband or clip. Besides functioning as a stateroom key and streamlining the boarding process, the device is billed as a “personal concierge.” When used in tandem with the Ocean Compass app, the Ocean Medallion will enable passengers to make dinner reservations, order drinks to be delivered where they are located, receive excursion invitations based on interests, and play casino games anywhere on the ship.

“We’ve got to be really intelligent about how we introduce this because it’s different,” Donald said.

Carnival Corp. did a multimillion-dollar upgrade of the Regal Princess’ terminal at Port Everglades to create a new embarkation experience. “When guests walk through that terminal, it doesn’t feel like what they’re used to, so we want to manage all the unintended reactions,” Donald said.The first ship to have the Ocean Medallion, Princess Cruises’ Regal Princess, was to offer it on the entire 3,560-passenger ship starting Nov. 13, but the rollout has been scaled back to select guests and groups.

The MedallionNet rapid Internet service, which is in use on the whole ship, is drawing rave reviews, Donald said.

Carnival Corp. is targeting the 2018 first quarter for a wider introduction of the Ocean Medallion. “The guests will decide what they want, how they want it when they want it. That’s why we’re introducing it slowly to make sure we get it right because it’s truly transformational,” Donald said.

Carnival is also moving deliberately on developing a new $200 million beach destination in Grand Bahama. Donald said Carnival signed a deal to build the destination just before a change in government in the Bahamas.

“We’re working closely with the new government to make sure we’ve got the right location, the right development concepts and that it will work for the locals,” Donald said. “It’s not just a matter of building a destination, but building a destination that’s woven through the local community. We hope to have that destination completed in the next few years, but it is a process.”

Donald was also asked why Carnival sells through warehouse club Costco, which uses gift cards convertible to cash as a rebate when club members buy cruises

“I don’t have an easy answer for any of these big-scale folks that go low-cost,” Donald responded. “You have to match up your business where it really will compete effectively.”

He said agents that provide personal service and client understanding will not suffer from bottom-feeder competition, but he said Carnival will look at the issue. “We would prefer to see strong pricing,” he said. “There’s no big reason to be discounting today.”