CEO Conversations: Carnival Corp.’s Donald on stability and innovation

Carnival Corp. CEO Arnold Donald, far right, was joined onstage during the CEO Conversation panel by John Chernesky-the-puppet of Princess Cruises. The session was moderated by editor in chief Arnie Weissmann, seated, left.

Carnival Corp. CEO Arnold Donald, far right, was joined onstage during the CEO Conversation panel by John Chernesky-the-puppet of Princess Cruises. The session was moderated by editor in chief Arnie Weissmann, seated, left. Photo Credit: Jamie Biesiada

FORT LAUDERDALE — Carnival Corp. CEO Arnold Donald told an audience at CruiseWorld that being the largest cruise company in the world comes with two key advantages — stability and innovation — that help Carnival’s brands deliver industry-leading results.

The company has more than 100 ships, and it operates in every segment and several global source markets. “One of every two people who cruise go with one of our nine brands,” Donald said, which include Princess Cruises, Holland America Line and Cunard Line, in addition to the namesake Carnival Cruise Line.

“Because we have such a large portfolio, it’s difficult for anyone thing happening somewhere in the world to take the company down,” Donald said.

Size matters in innovation too. “We have the scale and the capability to take on projects that others can’t,” he said.

A prime example of that is the costly OceanMedallion personalization technology that Carnival developed and rolled out initially on Princess Cruises.

“We invented it,” Donald said. “It’s not off-the-shelf apps.”

Donald ran down a list of developments at various Carnival brands, such as the roller coaster on next year’s Carnival Cruise Line newbuild, the Mardi Gras.

But when he forgot to mention Princess Cruises, a surprise guest made an appearance.

From behind the couch where Arnold was seated, up popped a Muppets-style character designed to look like Princess’ senior vice president of sales and trade marketing, John Chernesky. The puppet ribbed Donald and amused the crowd until the real John Chernesky bounded on stage to complain that the puppet has been impersonating him all over town.

The larger message to the puppet tomfoolery was to billboard the Jim Henson Creature Shop show, called “Inspired Silliness,” that will debut next month on the newest Princess ship, the Sky Princess.

When Donald finally regained the spotlight, he took some time to outline Carnival’s sustainability initiatives and defend the industry’s record.

He said that very little of the estimated 8 million tons of plastics in the ocean comes from ships, much less from cruise ships. “It comes from land; it comes through the rivers and gets into the ocean,” he said, adding, “Having said that, we don’t want anything going in the ocean. He said that Carnival has accelerated existing recycling efforts and processes to eliminate plastics from its waste stream.

Likewise, when it comes to greenhouse gas emissions, a Carnival brand was the first to use liquified natural gas (LNG) to provide power in port, and Carnival Corp. will be the first to bring an LNG-powered ship to North America, with the Mardi Gras.

“Ultimately we want to get to zero-emission,” Donald said. But he said cruise emissions are a tiny fraction of the global equation. “The reality is if the cruise industry didn’t exist, you wouldn’t be able to measure the difference in emissions,” he said.

Carnival and Royal Caribbean join forces to develop St Lucia cruise facilities

Image result for St Lucia cruise terminal

Carnival Corporation and Royal Caribbean Cruises have signed an agreement to construct a new cruise terminal on the island and manage its existing facility.

The cruise giants signed a memorandum of understanding with the Saint Lucian government on Tuesday to form a joint venture for the project.

The cruise line brands account for 75% of all cruise ship deployment to the island.

The joint venture will manage and operate the current cruise pier and terminal facilities at the Port of Castries and design, finance, build and operate a new cruise port in Vieux Fort on the southern part of the island.

Prime minister of Saint Lucia Allen Chastanet said the agreement marked “a major step towards enhancing” the country’s tourism offering.

He said: “Saint Lucia has had record-breaking cruise arrivals over the past few years and we thank our partners Carnival Corporation and Royal Caribbean for their continued confidence in our amazing destination.

“It is essential that we continue to diversify what we have to offer, grow our brand and ensure that different sectors in our island’s economy benefit from the growth in cruise tourism and that Saint Lucians can benefit from the opportunities which arise from the increased numbers; which means we have to improve our capacity.

“This signing is historic, as this project will have a major impact on the sustainability of the cruise sector and the reach of cruise tourism to the south of the island. This will also mean employment at several phases of the project, the expansion of existing businesses and the formation of new enterprises.”

Giora Israel, senior vice president of global port and destination development for Carnival Corporation said: “This is an exciting day for our guests who already love the beauty and deep culture of Saint Lucia and an important step in sustaining cruise tourism growth for the island.”

Michael Bayley, president and chief executive of Royal Caribbean International said the cruise market is the fastest-growing sector of tourism and in the next decade cruising in the Caribbean is anticipated to grow by 40%.

Steady Growth for Carnival in Galveston

Carnival Vista in Galveston

The Carnival Radiance and Breeze will join the Vista and Dream sailing from Galveston year-round in May 2021, Carnival Cruise Line announced today.

“We’ve been undergoing steady growth in Galveston since we started sailing there in 2000 with one ship,” said Fred Stein senior director of revenue planning and fleet development, Carnival Cruise Line.

The line went to three ships out of Galveston in 2015, with the Vista taking the place of the Breeze recently and adding more berths to the market.

“The next level of growth is adding a fourth ship,” Stein continued.

The four ships will mean Carnival is posting a 25 per cent increase in berths out of Galveston, according to Cruise Industry News data, with over 13,000 berths based in the Texas port in 2021.

Demand comes via 37 million people within a 500-mile drive, according to Stein, and many who fly in from the West Coast to Houston.

Fred Stein

The Radiance, which will be converted from the Carnival Victory after a $200 million drydock next year, is moving to Galveston from Port Canaveral, while the Breeze comes over from Port Everglades for her Texas return.

The Freedom will be redeployed elsewhere, with an announcement expected soon.

All told, Carnival could carry nearly one million guests from Galveston on 235 itineraries in 2021, ranging from five to 14 days.

Stein said the port’s infrastructure can handle the four ships, and parking capacity was more than sufficient. 

The Radiance will concentrate on mainly five-day cruises, but three new nine-day options are available that depart on Fridays. Stein said these voyages were ideal as they offered a nine-day vacation, but for the most guest, only a week off work.

One nine-day option will call at Cozumel, Limon (Costa Rica), and feature a partial Panama Canal transit or a visit to Colon (Panama), while another features Key West, Grand Turk, Half Moon Cay and Nassau. The third voyage calls at Grand Cayman, Mahogany Bay (Isla Roatan), Belize, Costa Maya and Cozumel.

“This is the most differentiated content we have been able to offer from Galveston,” Stein told Cruise Industry News. 

The company is also offering two 14-day Carnival Journeys sailings, featuring eight ports each. 

“Those offer a lot of differentiated port content you wouldn’t get on a short cruise,” Stein said.

The Carnival Breeze will move into the short cruise rotation, sailing year-round four- and five-day itineraries.

“The Breeze has been in Galveston for quite a while,” Stein said. “She is very popular in Texas and will take on the four- and five-day cruises that the Dream is doing.”

Four-day “weekend” cruises leave on Thursdays and call in Cozumel while five-day cruises depart on Mondays and Saturdays with calls at Cozumel and either Progreso or Costa Maya. 

The Dream will move to a new six- and eight-day cruise schedule in May 2021 while the Vista will sail week-long cruises on two separate Western Caribbean itineraries.

Carnival plans to carry its 8 millionth guest from Galveston in early 2021.

2000 to 2020

Carnival started year-round cruising out of Galveston in 2000 with the Carnival Celebration, which was based in the port and offered four- and five-day Western Caribbean sailings at the time.

Double Carnival Call in Galveston

At the time, the Miami-based brand was the first major cruise line to base a ship year-round out of Galveston. Carnival made a five-year deal in 2000 and in return, the port invested in renovating its passenger terminal and building a parking facility for 1,100 cars.

It’s been all growth then, with the Jubilee joining the Celebration in 2002. 

The ships got bigger over time, and two ships became three in 2015, with 2021 set to see four ships sailing year-round for Carnival from Galveston.