Carnival Corporation & Profile
Carnival Corporation & plc operates as a leisure travel company with a portfolio of cruise lines.
The company’s cruise lines include AIDA Cruises (AIDA), Carnival Cruise Line, Costa Cruises (Costa), Cunard, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises, and Seabourn.
Segments
The company operates through four segments: North America and Australia (NAA) Cruise Operations, Europe Cruise Operations (Europe), Cruise Support, and Tour and Other.
The operating segments within each of the company’s NAA and Europe reportable segments have been aggregated based on the similarity of their economic and other characteristics, including geographic guest sourcing.
The company’s Cruise Support segment includes its portfolio of leading port destinations and exclusive islands as well as other services, all of which are operated for the benefit of its cruise brands.
The company’s Tour and Other segment represents the hotel and transportation operations of Holland America Princess Alaska Tours and other operations.
Global Cruise Business
As of November 30, 2023, Costa included Costa Firenze, passenger capacity of 4,240, which will be transferred to Carnival Cruise Line in 2024.
The company also has a Cruise Support segment that includes its portfolio of leading port destinations and exclusive islands, as well as other services, all of which are operated for the benefit of the company’s cruise brands.
In addition to its cruise operations, the company owns Holland America Princess Alaska Tours, the leading tour company in Alaska and the Canadian Yukon, which complements its Alaska cruise operations. The company’s tour company owns and operates hotels, lodges, glass-domed railcars and motorcoaches, which comprise its Tour and Other segment.
Ships Under Contract for Construction
As of November 30, 2023, the company had a total of 4 cruise ships expected to be delivered through 2025.
Passengers Carried and Principal Source Geographic Areas
In 2023, the company carried 12.5 million passengers comprising 8.6 million carried by its NAA segment and 3.8 million carried by its Europe segment.
Cruise Brands
Carnival Cruise Line is ‘The World’s Most Popular Cruise Line’ and has provided multi-generational family entertainment at exceptional value to its guests for over 50 years. Carnival Cruise Line creates an environment where guests can be their most playful selves on ships that are designed to inspire the experience of bringing people together, with limitless opportunities for guests to create their own fun. In the spring of 2023, Carnival Cruise Line introduced Carnival Fun Italian Style, a new concept which marries the great service, food, and entertainment that Carnival’s guests enjoy with Italian design features.
Princess Cruises is The Love Boat, the brand that introduced the world to the elegance and romance of modern-day cruising and has delivered dream vacations to millions of guests for over 55 years in the most sought-after destinations. Princess combines extraordinary large ship amenities with elite service personalization and simplicity to create meaningful connections and unforgettable moments in the most incredible settings across the globe.
Holland America Line has been exploring the world for over 150 years and pioneered cruising in Alaska and Yukon. Its fleet offers an ideal mid-sized ship experience. Holland America Line’s ships feature a diverse range of enriching experiences focused on destination exploration and personalized travel. Live music at sea fills each evening at Music Walk, and dining venues feature exclusive selections from a Culinary Council of world-famous chefs.
For over 90 years, P&O Cruises (Australia) has taken Australians and New Zealanders on dream holidays to the most incredible destinations along the Australian coast, as well as the idyllic South Pacific. The home-grown cruise line delivers a holiday with great entertainment, world-class dining, and unforgettable onboard experiences. Delivered in the Aussie way, guests can choose to do everything, or nothing at all.
Seabourn, a leader in ultra-luxury cruising, sails to legendary cities and less-traveled ports. Intimate ships with a yacht-like atmosphere, allow guests to discover the unexpected—about the world and about themselves. Guests enjoy all ocean-front suites and world-class gourmet dining as they wish. Seabourn creates moments of surprise and delight known as ‘Seabourn Moments’ in an environment that fosters building meaningful connections with fellow travelers, crew members and the communities they visit. Seabourn’s fleet includes two purpose-built ultra-luxury expedition ships offering amenities, such as submarines, Zodiacs, and kayaks.
For 75 years, Costa’s ships have sailed the seas of the world, offering a diverse choice of cruise holidays. Costa primarily serves guests from Continental Europe and South America, enriching them through the exploration of destinations and unique experiences, both onboard and ashore. Its warm hospitality, entertainment, and gastronomy, featuring a true European touch and Italian passion makes Costa different from any other cruise experience.
AIDA is the leading and most recognized brand in the German cruise market. AIDA delivers unique travel experiences with modern comfort, where guests of all ages feel at home and enjoy consistently excellent service accompanied by the AIDA smile. Guests across generations enjoy the German-inspired modern premium lifestyle cruise experience with a wide variety of culinary delights, first-class entertainment, unforgettable shore excursions, numerous sports activities, and spacious wellness areas to relax.
P&O Cruises (UK) is Britain’s largest cruise line, welcoming guests to extraordinary travel experiences designed in a distinctively British way - through a blend of discovery, relaxation and exceptional service catered towards British tastes. P&O Cruises (UK)’s fleet of premium ships deliver authentic travel experiences around the globe, combining style, quality, and innovation with a sense of occasion and attention to detail, to create a truly memorable holiday.
For over 180 years, the iconic Cunard fleet has perfected the timeless art of luxury ocean travel. While onboard, Cunard guests experience unique signature moments, from Cunard’s white gloved afternoon tea service to its renowned Insights Speaker program. Guest expectations are exceeded through Cunard’s exemplary White Star Service. From the moment a guest steps onboard, every detail of their voyage is curated to ensure they feel special and are inspired by unique events. Onboard Cunard, guests are free to do as much or as little as they please.
The company offers value added packages to induce ticket sales to guests and groups and to encourage the advance purchase of certain onboard items. These packages are bundled with cruise tickets and sold to guests for a single price rather than as a separate package and may include one or more of the following: beverage packages, internet packages, shore excursions, photo packages, air packages, onboard spending credits, specialty restaurants, and service charges.
Seasonality
The company’s passenger ticket revenues are seasonal. Demand for cruises has been greatest during the company’s third quarter ((year ended November 30, 2023)), which includes the Northern Hemisphere summer months. This higher demand during the third quarter results in higher ticket prices and occupancy levels, and accordingly, the largest share of the company’s operating income is typically earned during this period. The company’s results are also impacted by ships being taken out-of-service for planned maintenance, which it schedules during non-peak seasons. In addition, substantially all of Holland America Princess Alaska Tours’ revenue and operating income is generated from May through September in conjunction with Alaska’s cruise season.
Onboard and Other Revenues
Onboard and other activities are provided either directly by the company or by independent concessionaires, from which it receives either a percentage of their revenues or a fee. Concession revenues do not have direct expenses because the costs and services incurred for concession revenues are borne by the company’s concessionaires. In 2023, the company earned 34% of its cruise revenues from onboard and other revenue goods and services, including beverage sales; internet and communication services; casino gaming; full service spas; shore excursions; specialty restaurants; retail sales; art sales; photo sales; and laundry and dry cleaning services.
Port Destinations and Exclusive Islands
The company operates a portfolio of port destinations and exclusive islands enabling it to offer exceptional experiences to 5.7 million guests by creating a wide variety of high-quality destinations that are uniquely tailored to its guests’ preferences. In addition, to secure preferential berth access to third-party ports, the company enters into berthing agreements and commitments.
In May 2022, Carnival Cruise Line broke ground on its new exclusive cruise port destination, Celebration Key, expected to open in 2025 and located on the south side of Grand Bahama Island. Celebration Key will include a pier able to accommodate up to two of the company’s largest ships simultaneously, welcoming guests to a stunning beach and further expanding its experience offerings with an abundance of features and amenities for its guests. Additionally, the company’s investment in Celebration Key will support its efforts to design more energy efficient itineraries based on its strategic location and will be an important addition to its current portfolio of six corporate operated ports and destinations comprising Puerta Maya in Cozumel, Mexico; Grand Turk Cruise Center in Turks & Caicos; Mahogany Bay in Isla Roatan, Honduras; Amber Cove in the Dominican Republic; Half Moon Cay, an exclusive island in The Bahamas; and Princess Cays, an exclusive island in The Bahamas.
Sales Channels
The company sells its cruises through travel agents, tour operators, company vacation planners, its websites and onboard future cruise consultants. The company’s individual cruise brands’ relationships with their travel agent partners are generally independent of each of its other brands.
The company utilizes local sales teams to motivate travel agents to support its products and services with competitive pricing, promotional policies and joint marketing and advertising programs. The company also employs a wide variety of educational programs, including websites, seminars, and videos, to train agents on its cruise brands and their products and services. In 2023, the company held a variety of virtual and in-person trainings and educational programs to continue to support and develop its travel agent partners, including ship visits to familiarize its travel agent partners with its products and services.
All of the company’s brands have internet booking engines to allow travel agents to book its cruises. Additionally, all of the company’s cruise brands have their own consumer websites that provide access to information about their products and services to users and enable their guests to quickly and easily book cruises and other products and services online. These sites interface with the company’s brands’ social networks, blogs, and other social media sites, which allow them to develop greater contact and interaction with their guests before, during and after their cruise. The company also employs vacation planners and onboard future cruise consultants who support its sales initiatives by offering its guests one-on-one cruise planning expertise and other services.
Competition
The company’s principal cruise competitors are Royal Caribbean Group, Norwegian Cruise Line Holdings, Ltd., and MSC Cruises.
Governmental Regulations
All of the company’s ships, and the maritime industry as a whole, are subject to the maritime safety, security and environmental regulations established by the International Maritime Organization (IMO), a specialized agency of the United Nations. The IMO’s principal sets of requirements are mandated through its International Convention for the Safety of Life at Sea (SOLAS), its International Convention for the Prevention of Pollution from Ships (MARPOL) and its International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW).
The company’s ships are registered, or flagged, in The Bahamas, Bermuda, Italy, the Netherlands, Panama and the U.K., which are also referred to as Flag States. The company’s ships are regulated by these Flag States through international conventions that govern, among other things, health, environmental, safety and security matters in relation to its guests, crew, and ships.
The company’s ships are subject to periodic class surveys, including dry-dock inspections, by ship classification societies to verify that its ships have been maintained in accordance with the rules of the classification societies and that recommended repairs have been satisfactorily completed. Dry-dock frequency is a statutory requirement mandated by SOLAS.
The company is subject to the decrees, directives, regulations, and requirements of the European Union (EU), the U.K., the U.S., other countries, and many other authorities, including ports that its ships visit.
The company’s ships are also subject to inspection by the port regulatory authorities, which are also referred to as Port State Control, in the various countries that they visit. Such inspections include verification of compliance with the maritime safety, security, environmental, customs, immigration, health, and labor requirements applicable to each port, as well as with regional, national, and international requirements.
All of the company’s crew undergo regular safety training that meets or exceeds all international maritime regulations, including SOLAS requirements, which are periodically revised. Additionally, it has implemented and continue to develop policies and procedures that enhances its commitment to the safety of its guests and crew.
All the company’s ships are regularly audited by its various national authorities, and it is required to maintain the relevant certificates of compliance with the International Safety Management Code (ISM Code).
The company’s ships are subject to numerous security requirements. These requirements include the International Ship and Port Facility Security Code, which is part of SOLAS, the U.S. Maritime Transportation Security Act of 2002, which addresses U.S. port and waterway security and the U.S. Cruise Vessel Security and Safety Act of 2010, which applies to all of its ships that embark or disembark passengers in the U.S.
As a means of managing and improving the company’s environmental performance and compliance, it adheres to standards set by the International Organization for Standardization (ISO), an international standard-setting body, which produces worldwide industrial and commercial standards. The environmental management system of the company and ships is certified in accordance with ISO 14001, the environmental management standard that was developed to help organizations manage the environmental impacts of their processes, products, and services.
MARPOL includes six annexes, four of which are applicable to the company’s cruise ships, containing requirements designed to prevent and minimize both accidental and operational pollution by oil, sewage, garbage and air emissions and the provision of facilities at ports and terminals for the reception of sewage and sets forth specific requirements related to vessel operations, equipment, recordkeeping and reporting that are designed to prevent and minimize pollution. All the company’s ships must carry an International Oil Pollution Prevention Certificate, an International Sewage Pollution Prevention Certificate, an International Air Pollution Prevention Certificate and a Garbage Management Plan. MARPOL also requires that the company’s ships have Shipboard Oil Pollution Emergency Plans.
The company has Advanced Air Quality Systems on most of its ships, which are aiding in partially mitigating the financial impact from the Emission Control Areas (ECAs) and global sulfur requirements. The company uses Advanced Air Quality Systems wherever possible subject to local laws and regulations. Additionally, Advanced Air Quality Systems used with heavy fuel oil (HFO) result in as good or better SOx, NOx and particulate emissions compared to marine gasoil (MGO).
The company has Certificates of Financial Responsibility (COFR) that demonstrate its ability to meet the liability limits of the Oil Pollution Act of 1990 (OPA 90) and covers releases of hazardous materials.
The company collaborates with public health inspection programs throughout the world, such as the Centers for Disease Control and Prevention (CDC) in the U.S. and the SHIPSAN Project in the EU, to ensure that development of these programs leads to enhanced health and hygiene onboard its ships.
The STCW, as amended, establishes additional minimum standards relating to training, including security training, certification and watchkeeping for the company’s seafarers.
History
Carnival Corporation & plc was founded in 1972. The company was incorporated in Panama in 1974.
