Carnival’s impact on the public’s perception of cruising

Carnival’s impact on the public’s perception of cruising

By Tom Stieghorst

*InsightSince the engine fire on the Carnival Triumph in February, the industry has been closely monitoring the public perception of cruising and whether the industry has come under a cloud.

Did the problems experienced by a single Carnival Cruise Lines ship taint perceptions of the entire cruise experience?

There’s more evidence in Carnival Corp.’s second-quarter financial results that the perception of a problem with cruising has mostly affected Carnival’s flagship product.*TomStieghorst 

Carnival said that, excluding Carnival Cruise Lines, bookings for the next three quarters are up, and at higher prices.  That means that Princess, Holland America Line, Cunard Line and the rest of the Carnival stable have been more than holding their own since March.

Competitors such as Royal Caribbean International and Norwegian Cruise Line likewise do not appear to be struggling with lower prices, according to Wall Street analysts.

When Carnival Cruise Lines gets thrown into the mix, however, Carnival Corp. bookings are behind last year, and at lower prices.  Regrettably for Carnival Corp., and perhaps the industry, if Carnival Cruise Lines isn’t healthy, the conversation about cruising suffers. 

It should be noted that two Harris Interactive polls, one in March and a follow-up in May, found that perceptions about quality, trust and intent to purchase for seven cruise brands were down across the board, albeit with Carnival Cruise Lines scoring lowest.

It is hard to square the poll results with the financial results, except to say that the poll is a measure of what people say, and booking data is a measure of what they actually do.

The financial results say that, except for Carnival Cruise Lines, there’s more demand for cruises this year than last. If Carnival Cruise Lines can heal itself, however, the whole industry will undoubtedly benefit.

Carnival sues Alabama shipyard where Triumph was towed

Carnival sues Alabama shipyard where Triumph was towed

By Tom Stieghorst
Carnival Corp. has filed a lawsuit seeking damages from the shipyard in Mobile, Ala., where the Carnival Triumph was towed in February after its engine fire.

The suit says deteriorated and inadequate mooring bollards failed during a rainstorm on April 3, allowing Triumph to break free of the pier and damage other vessels and structures. Triumph itself also sustained “significant” damage, the suit says.

The suit seeks at least $12.6 million in damages from BAE Systems Southeast Shipyards Alabama Property Holdings LLC. Attorneys for BAE Systems have not yet filed a response.

Also named as a defendant in the suit is Bernadette Johnson, wife of John “Buster” Johnson, a worker who drowned when the Triumph broke free. She had sued Carnival on May 29, the suit says.

In the suit, Carnival seeks a declaration that it is not liable for injuries or damages from the incident.

Carnival said it has claims or expects claims from the Signal Ship Repair shipyard on the Mobile River and from the U.S. Army Corps of Engineers, whose dredging ship was hit by Carnival Triumph.

Cruise incidents haven’t put customers off, research shows

Cruise incidents haven’t put customers off, research shows

Cruise incidents haven't put customers off, research showsRecent issues in the cruising industry haven’t put customers off, as new research shows there are significant opportunities for travel agents to capitalise on cruise holidays.

Research by Amadeus revealed the media coverage of negative issues with cruises has had little impact on perceptions of cruises.

More than 40% of those polled said the coverage of incidents such as Costa Concordia and sporadic outbreaks of norovirus had not put them off cruising. A further 8% weren’t aware of any media coverage of issues on cruise holidays.

Of the 2,000 UK adults surveyed, 8% said they may book a cruise holiday in the next 12 months.

The Caribbean was the dream destination for most when asked where they would most like to go on a cruise holiday from a set list. More than a fifth of people (21%) opted for the Caribbean, 15% said the South Pacific and Australia and 11% said the Mediterranean was their choice. A third of people asked said waking up in a new place almost every day attracting them to cruises

In addition, 32% of those polled said they would be tempted to go on a cruise holiday if they were of lower or comparable cost to an all-inclusive holiday. Four in ten people said they perceive cruises as too expensive and additional costs such as drinks and tipping were of concern to some.

Rob Sinclair-Barnes, director of marketing for Amadeus UK and Ireland, said: “These findings should make for very pleasing reading for the UK’s travel agents and cruise providers, as they show there are enormous opportunities to sell cruises in 2013 and beyond.

“However, there are still plenty of opportunities for cruise providers and sellers to communicate the various offerings more effectively: there’s still a perception that cruise holidays are for the older traveller, and that they’re expensive – despite sustained efforts by the industry to broaden its appeal to a younger clientele, where value for money is a key criteria.”