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 Corp. building private destination on Grand Bahama

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Carnival Corp. and the Bahamas government signed development agreements that pave the way for a Carnival-run port destination on Grand Bahama and the expansion of the company’s private island Half Moon Cay.

Among other things, the agreements provide for the construction of a pier at Half Moon Cay, which until now has been a tender port.

Carnival said the Grand Bahama project will represent an investment of over $100 million, and the development on Little San Salvador, where Half Moon Cay is situated, will be an estimated $80 million investment over time.

Once environmental and other permitting processes are completed, construction for both projects is projected to start by mid-2020. 

Carnival and the Bahamas said the projects are expected to play an important role in the country’s recovery from Hurricane Dorian. They said construction parameters will be designed to meet or exceed guidelines for “being able to mostly withstand the impact of a Category 5 hurricane.” Carnival’s plans for both projects were laid well before Dorian. 

The Grand Bahama project is intended primarily for Carnival Cruise Line and will be its first dedicated private destination in the Bahamas.

Some Carnival Cruise Line ship call at Half Moon Cay, which is primarily used by Holland America Line. 

Carnival Corp. said the current development on the western side of Little San Salvador covers less than 3% of the 2,400-acre island. The new addition will be on the northern part of the island and include a pier able to accommodate larger ships. The beaches of Half Moon Cay will continue to be the main attraction, Carnival said.

Carnival brands resume Bahamas calls

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Carnival Corp. said that its brands have resumed regular sailings to the Bahamas for the first time since Hurricane Dorian struck on Sept. 1.

The company’s private islands, Princess Cays and Half Moon Cay, have resumed taking ship calls and Carnival’s three largest North American brands — Carnival Cruise Line, Princess Cruises and Holland America Line — together are projected to make over 250 sailings to the Bahamas through the end of 2019.

Carnival Cruise Line alone will make an estimated 204 calls through the remainder of the year, visiting Nassau, Half Moon Cay and Princess Cays on eight of its ships.

Princess will return to with the Crown Princess’ arrival on October 9, and Holland America resumes Bahamas calls beginning Oct. 21, when the Zuiderdam arrives at Half Moon Cay.

Two Carnival ships — Carnival Liberty and Carnival Pride — have made stops this week in Freeport to deliver relief supplies to assist residents, including dozens of pallets of water, generators, chain saws, prepared meals and medical supplies. 

Carnival Corp. chief communications officer Roger Frizzell said, “It is important to spread the word that much of the country had no or little impact and is open for business.”