New Carnival CEO says she can ‘relate to the brand’

With the appointment of Christine Duffy, Carnival Cruise Line becomes one of the few and certainly the largest cruise brand to be headed by a former travel agent.

That bodes well for Carnival, which over the years has sometimes struggled to manage tensions between its commitment to agents and the preference of some customers to buy direct.

Duffy, 53, started her career as an agent with McGettigan Partners, a specialist in incentive travel, where she rose through the ranks to become president.

On Dec. 17, Carnival Corp. CEO Arnold Donald chose her to become the fourth president of the 24-ship Carnival brand, succeeding Gerry Cahill, who retired in November.

Duffy said her background as an agent was one of the things that prepared her to move into her new role, with its high visibility and responsibility.

“Certainly when I was a travel agent I sold a lot of Carnival cruises, and I certainly can relate to the brand and our guests,” she said.

Since 2010, Duffy has been president and CEO of CLIA, the industry’s trade association. Before that, she spent a decade at St. Louis-based Maritz Travel, which acquired McGettigan in 2001.

In searching for Cahill’s successor, Donald said that the ideal candidate would be someone who resonates with Carnival’s sociable and fun-loving brand.

“We did talk a lot about the brand and about my admiration for Carnival Cruise Line,” Duffy said about her discussions with Donald regarding the job. “I do like people. I’m definitely a people person. I’m very social, and I like to be busy and engaged and interact. Everything I know about the Carnival brand is that it’s all about fun, and I think that’s what vacations should be.”

Duffy will begin her new duties on Feb. 1, the same day that Carnival Corp. rolls out its first-ever Super Bowl ad. Although the ad covers all of Carnival’s brands and is meant to reinforce cruising as a vacation option, it serves as the culmination of a comeback for the Carnival brand in particular.

Duffy steps into the president’s chair as the line has rebounded from a collapse in demand following the Carnival Triumph engine room fire in February 2013 and a roasting in the consumer media over Carnival’s handling of the disabled ship.

Shortly after the fire, Carnival said its consultants expected the brand’s full recovery to take three years. Earlier this year, the company cited YouGov’s BrandIndex survey, which found Carnival the most improved U.S. brand in consumer perception for the first half of 2014.

As part of its recovery bid, the line launched its Carnival Conversations initiative to solicit feedback from travel agents and make changes to boost its standing with the trade.

Duffy said she very much appreciates the importance of agents.

“I’m very supportive of the channel,” she said. “And I believe that with so many cruise options out there, using a travel professional … is the best way to ensure that you get on the right cruise for you.”

At the same time, she said, Carnival will continue to offers customers a choice for those who want to book direct.

“Any business has to pay attention and work with customers the way customers want to work with you,” she said.

Duffy said she first met Donald through Maritz Travel CEO Steve Maritz. Maritz, who said he’s talked to Donald about Duffy “any number of times,” said she combines a good strategic perspective with the ability to execute.

“On top of that she’s been through some crises in the travel business and she’s shown a cool head and leadership ability,” he said.

Duffy’s impending departure from CLIA leaves a hole at the trade group just as it is in the process of consolidating its operations in a new office in Washington.

A transition plan is underway and will be announced shortly, said Adam Goldstein, chairman-elect of CLIA and president and COO of Royal Caribbean Cruises Ltd.

“While Christine will certainly be missed at CLIA, she has a strong team at CLIA who will continue to support our membership and the many activities we have underway around the world,” Goldstein said.

With the job change, Duffy stands to get a big pay increase. While Carnival has not yet disclosed her salary, as president and CEO of CLIA Duffy earned $872,569, according to a filing nonprofits are required to make with the Internal Revenue Service.

The retiring Cahill earned total compensation of more than $2.9 million last year, according to Carnival’s proxy statement for the 2014 annual shareholders meeting.

Duffy’s appointment gives the cruise industry its fourth female brand president in a little over a year, following the appointments of Edie Rodriguez at Crystal, Jan Swartz at Princess and most recently Lisa Lutoff-Perlo at Celebrity.

Rodriguez said that if the top of the cruise industry was once a boys club, women now have a boardroom of their own.

“I think it’s a wonderful girls club to be in, and more power to the girls club,” Rodriguez said.

In naming Duffy president, Donald didn’t mention gender but rather cited her dynamic leadership and wealth of experience as qualifications for the job.

Brad Tolkin, co-chairman and CEO of World Travel Holdings, called Duffy “a respected industry leader,” while Vicky Garcia, COO and co-owner of Cruise Planners, of Coral Springs, Fla., predicted, “She will resonate with travel agents and be front and center in the industry.”

Duffy said that when she started her career as an agent in 1982, she never imagined she would end up as president of a cruise line, much less of the world’s largest line.

“But, boy, it just shows that with a lot of hard work and passion, a girl from Philadelphia can work her way through the ranks to become president of the largest cruise company,” Duffy said. “I’m honored and thrilled to be taking on the challenge.”

Carnival Corp. posts ad concepts for consumers to vote on

Carnival Corp. has posted six ad concepts for its next marketing campaign, with tools for consumers to vote for the one or ones they like best.
The ad ideas are featured on the revamped WorldsLeadingCruiseLines.com website, along with a new tool to help consumers sort out what kind of cruiser they are and information about Carnival’s various brands.

Each ad concept runs about 90 seconds, including a 20-second introduction by comedian Cedric the Entertainer. The concepts are presented like advertising storyboards, black-and-white sketches accompanied by narration and sometimes background music.

In one, entitled “Unicorn,” a pair of unicorns watch other animals getting on the boat as it starts to rain. The unicorns run through the reasons not to go — too crowded, boring, bad food. The viewer sees scenes of other animals living it up on the ship. The narrator calls the unicorns “clueless,” and says “they think the rain is letting up but we know better.”

Another ad, “Cruise Virgin,” is full of light sexual double entendre and seems tailor-made for a Carnival Cruise Lines audience. “No Robots” turns the obstacles to enjoying a cruise into a series of annoying, intrusive robots.

Coincidentally, Carnival rival Royal Caribbean International features a pair of robot bartenders on its newest ship, Quantum of the Seas.

“Message In A Bottle” and “Getaway” seem to embody some of the themes of Princess Cruises’ current campaign, “Come Back New,” that plays on emotional connections.

In “Message in a Bottle” a fairy tale atmosphere prevails in which the narrator remarks “I can’t believe this is a cruise ship.” A young girl finds a message in a bottle and magical things happen, such as “people become young with a touch” voiced against an image of a massage.

“Getaway” speaks to the need to escape the stresses of life, get away and connect with what matters. Everyday life is represented by a mob of angry, noisy people trying to prevent a cruise ship from sailing, while onboard everything is soothing and relaxed, a playground of oblivious people reconnecting with themselves and loved ones.

The final ad, “Mystery Spot” shows and describes the wake of a cruise ship in lyrical terms. A vaguely Hawaiian melody plays in the background. The narrator says there is a big surprise hidden in the spot. “Let your imagination take over. Check it out,” he says.

Carnival says it will use audience input to pick which of the six concepts will be turned into a first quarter digital and television ad campaign for the company’s nine brands.

Carnival resumes single price for beverage package

By Tom Stieghorst
Carnival Cruise Lines has resumed charging a single price for its all-inclusive beverage package, after experimenting with a variable price system.

Starting Oct. 25, the price for the “Cheers!” package became $49.95 per person, per day, for cruises of all lengths.

In August, Carnival began testing a system in which Cheers! cost more on short cruises. Earlier this year, Carnival expanded the package to three-day cruises, for which it hadn’t previously been available.

Under that concept, Cheers! cost $55 per person, per day on a three-day cruise, $45 on a four-day cruise, $42.50 on a five- or six-day cruise and $37.50 on a seven or eight-day cruises.

The package provides flat-rate daily pricing for alcoholic drinks, nonalcoholic frozen drinks, wine by the glass and soda. Drinks $10 or less are covered and there is a limit of 15 alcoholic drinks per day.