Tag Archives: carnival

A More Profitable Carnival Corporation Expected To Emerge

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A leaner, more profitable Carnival Corporation is likely to emerge following the COVID-19 pandemic, according to Cruise Industry News’ calculations.

One important aspect will be what now seems like the overdue removal of 18 existing ships from the fleet.

When Carnival Corporation announced earlier this week that it expects to dispose of 18 ships, eight of which have already left the fleet, it also said that the ships represent 12 per cent of the company’s pre-pause capacity, but only 3 per cent of operating income in 2019.

That means that the 18 ships generated only approximately $98.3 million in operating income, compared to approximately $3.2 billion for the other 87 ships (Carnival listed its fleet at 105 ships for the end of its fiscal year 2019).

Assuming that the 18 ships represented their fair share of operating costs at 12 per cent, their removal prior to year’s end 2019 would have cut operating costs by approximately $2 billion, potentially resulting in operating income of approximately $5.4 billion.

Thus, according to Cruise Industry News estimates, Carnival’s operating income and net income could have been $2 billion more for 2019 if the 18 ships had left sooner, with net income of approximately $5 billion instead of $3 billion, or approximately $7.37 per share instead of $4.32 per share.

In addition, the disposed of ships will be replaced by larger and more efficient tonnage that will likely command higher ticket revenues and onboard spending while incurring lower operating costs.

Carnival Cruise bookings up 600 PERCENT

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  • Carnival Cruise Line bookings rose 600 per cent after the company said it will resume some of its cruises in August
  • That’s 200 per cent more bookings than this same time last year, reports a travel industry representative
  • Customers were primarily focused on locking down reservations and getting premium deals, says an American Express travel agent
  • Most of the travellers calling are described as young, healthy and eager to travel after being forced to stay home during COVID-19 lockdowns
  • The customers are ‘not a bit concerned about travelling at this time,’ says the representative

Carnival Cruise Line bookings rose 600 per cent after the company said it will resume some of its cruises in August, says a member of the travel industry.

The sharp rise in bookings is 200 per cent higher than this same time last year, reports an American Express travel agent.

An Instagram post from Carnival (pictured) explains 'enhanced protocols and social gathering guidelines will be put in place' once the company starts sailing again

Customers were primarily focused on locking down reservations and getting premium deals, says the agent.

Most of the travellers calling in at the moment were described as young, healthy and eager to travel after being forced to stay home during nationwide coronavirus quarantines, TMZ reports.

The customers are ‘not a bit concerned about travelling at this time,’ the representative told the news outlet.

So far, there have been 1,366,962 confirmed cases in the US of the coronavirus, which has been blamed for 80,696 deaths.

An Instagram post from Carnival explains that ‘enhanced protocols and social gathering guidelines will be put in place’ once the company starts sailing again.

While Carnival says it hopes to get back on the high seas by August, the company warns that plans could change and that there are no guarantees because of the potential for further delays due to the coronavirus pandemic.

‘We continue to work with various government agencies, including the CDC, as we introduce new onboard protocols, but there is no assurance of a return on August 1,’ Carnival wrote in its announcement.

Carnival had previously hoped to return in April or May after it first suspended its voyages in March. The date was later pushed to June 26 and now August 1.

One-fifth of all global ocean cruise ships were infected with the coronavirus after the outbreak began, leaving at least 2,592 crew and passengers infected and killing at least 65, according to research compiled last month detailing the pandemic’s impact on the cruise ship industry.

The data revealed that cases of the deadly virus were directly linked to at least 54 cruise ships, as they continued to travel the waters while the pandemic ravaged communities on land.

All four of the world’s largest cruise lines – Carnival, Royal Caribbean Cruises, Norwegian Cruise Line Holdings and MSC Cruises – were struck by outbreaks, as well as several smaller lines.

At least 922 of those infected and 11 who died were crew members working on the ships.

The stark findings, collated into a study by the Miami Herald using data from the CDC, cruise companies and passenger testimonies, show that the situation on board ships was far worse than official figures revealed.

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Queen Latifah Names Carnival Horizon

The Carnival Horizon was named by godmother Queen Latifah in a ceremony in New York on Wednesday evening that also showcased the talented young artists from St. Jude Children’s Research Hospital whose artwork adorns the Dreamscape, a stunning three-deck-high LED sculpture in the ship’s atrium.

“Carnival Horizon’s naming ceremony was one of our best yet, with Queen Latifah carrying out her duties as godmother then battling it out with Super Bowl champion Jake Elliott of my hometown Philadelphia Eagles in an entertaining Lip Sync Battle,” said Christine Duffy, president of Carnival Cruise Line. “We were also delighted to showcase the wonderfully talented children from St. Jude whose artwork on the Dreamscape will be forever associated with this spectacular ship.”

Added Latifah, “My time aboard Carnival Horizon was nothing short of incredible. In addition to having the honour of serving as the ship’s godmother, meeting the amazing kids from St. Jude and their families and squaring off against Jake in an all-out Lip Sync Battle is certainly something I will always cherish.”

Following the ceremony, Latifah squared off against Philadelphia Eagles Super Bowl champion Jake Elliott in Lip Sync Battle: Horizon modelled after the hit Paramount Network TV series and rolling out across the Carnival fleet.

St. Jude Children’s Research Hospital received a $100,000 donation from Carnival representing monies raised from various fundraisers, both onboard and ashore. The funds continue the line’s ongoing support of St. Jude with more than $16 million raised in the fight against childhood cancer since the partnership began in 2010.

“This is an absolute thrill for our patients and their families to have their artwork featured as a permanent display on this magnificent ship,” said Richard Shadyac Jr., president and CEO of ALSAC, the fundraising and awareness organization for St. Jude Children’s Research Hospital. “The ongoing support of Carnival team members and their customers around the globe for our lifesaving mission plays a critical role in advancing research and treatment for pediatric cancer and other life-threatening diseases.”