This is an old survey dedicated to the Carnival cruise news that changed the industry worldwide. To compare Carnival ship news related to new itineraries, home-ports changes, destinations and repositioning sailings, see our Carnival cruise itinerary changes survey.
Carnival news hits: 1) "Great Vacation Guarantee" and 2) "Shore Excursion Best Price Guarantee". Each one of them gives a 110% refund - the first one is for unhappiness, and the second one is for not so cool as advertised prices (see below for details).
Carnival cruise news 2014
- CCL extended its loyalty program offering a Carnival shareholder benefit (giving an OBC to passengers who own at least 100 CCL shares).
- (November 2013) MAN Diesel will be the engine supplier for the Carnival's new cruise ship Vista. CCL ordered 5 new 4-stroke MAN diesel engines (common-rail injection) for the latest generation Fun Ship Carnival Vista (to be ready in 2016). The Vista ship will weight 133,500 tons, will carry 5000 passengers and will be build by Fincantieri. The exact type of the all 5 ordered marine diesel engines is "2 × 14V48/60CR" and "3 x 8L48/60CR". They can deliver a combined power of 62,400 kW (83 679.7784 HP). The Carnival's choice of engines was based on factors, like better redundancy and performance, also lower fuel consumption and less smoke emissions. For the new engines' exact parameters and technical details you can search the supplier's website ManDiesel.se.
- From now on, Carnival is the line providing the industry's biggest and strongest guarantee ever! The name of the newest "better publicity" game is the Carnival's "Great Vacation Guarantee”. Starting with the Victory ship cruise from Miami on September 12, 2013, this new brand-building initiative allows CCL passengers to end their cruise vacation early if they aren't happy with the experience - and to receive a 110% refund! And this is not all - unhappy Carnival cruisers will also get a free air transportation home. Plus free ground transportation from the next call port. Plus free hotel stays (if necessary). Plus a $100 onboard credit for a future cruise with the line. The only requirement is guests must claim their unhappiness on the ship within the first 24 hours of the cruise. Can you possibly believe that?!?! The new Carnival cruise vacation guarantee will surely help pushing the CCL brand - I bet first-timers will love it!
In January 2014 CCL launches yet another super huge "guaranteed fun" deal - their sensational NEW Carnival cruise shore excursion best price guarantee - for 110% guaranteed Fun Ship fun. It assures you'll get the best price possible and guaranteed best value for money if booking Carnival cruise tours. The new shore excursion best price guarantee program is now implemented on all Carnival North America cruise ships. The so simple way it works is this: if you find a particular Carnival cruise tour you've booked through Carnival at any lower price offered by independent tour operator, you just fill out a claim form (online or on the ship) and CCL will give you 110% back in onboard credit. It simply means booking shore excursions through Carnival is the best deal there is available in terms of money, quality of service and guaranteed departure/arrival times.
- In December 2013 were introduced 2 NEW Carnival dinner menus - "American Table" (casual) and "American Feast" (formal nights). Call ports inspired, dishes names sound fantastic - all complimentary, first is Glory (Dec), next are Liberty (Jan) and in Feb Imagination and Inspiration. If this "dining experiment" results in 10 of 10 points, CCL will implement the new menus fleetwide.
- There were no Carnival Europe/UK cruises in 2014. In an official letter, the Carnival UK's Managing Director Adolfo Perez said Carrnival would relocate its ships out of UK and Europe. This decision was based on, quote, "market conditions, increasing air fares, and the fact that most of [CCL's] guests are from the US... we never expected the UK market to fill up those ships... We rely very heavily on the US to fill ships out of Europe and UK, and with the airline tickets pricing being so high, it's been difficult. Our guests are mainstream America and the costs of air fares is pricing them out", end of quote.
- "Carnival Dr Seuss at Sea" - new breakfast dining experience was introduced by The Fun line. Read about it in our Carnival Dining Options survey, and see there the "Carnival-Seuss connection" official video release.
Best sellers of the Carnival cruise news for 2013
- The newest ship Carnival SUNSHINE news. A result of the US $155 million dollar refit and refurbishment of the old Destiny ship - to be transformed into the new and shiny Carnival Sunshine. The Sunshine will operate several 9- and 12-day Med cruises while in Europe, followed by a Transatlantic repositioning to New Orleans LA - the new home-port of the new Carnival ship Sunshine will sail on regular 7-day round-trips departing from New Orleans to Eastern and Western Caribbean. Another news associated with the Sunshine cruise ship - she was christened in NOLA on Nov 17, 2013, by Lin Arison (the wife of the CCL's founder Ted Arison.
- CCL pumping a whole bunch of cash into fixing the mechanical problems - $300+ million on a new fleet-wide Carnival ships refurbishment-renovation program/dry-dock schedule. By the Fun Ship 2.0 program (started in 2011) a total of 14 Carnival ships will be "updated" by upgrading their onboard venues and programs. At the above link you can also see the complete list of ships scheduled to be refurbished - at the Carnival-big cost of around half a billion dollars - go get a candy-heart and read the stuff!
- A most honorable act of good will - Carnival Corporation will voluntarily repay US Government for the help CCL received from the US Coast Guard and Navy related to fire incidents on Triumph (2013) and Splendor (2010). By submitting a payment to the US Treasury, Carnival will reimburse the federal government for all costs related to these two incidents - Splendor incident (USCG $1,5 mill, US Navy $1,9 mill) and Triumph incident (USCG $800). Carnival officially stresses that no agencies have requested remuneration, but the company has made this decision voluntarily. It all started with the US Sen J.Rockefeller asking in an open letter to CCL whether the company would repay the US Gov for the Triumph and Splendor cases. Some of the most popular comments on the CCL's decision are that they shouldn't pay, it's the USCG job to do rescue operations, the money's already in the budget, and that this act sets an awful lot of precedents.
- From the late of June 2013 - enjoy the brand new Bon Voyage alcohol prices in the Fun Shops! They are new, alright, but who says they are better?!
- (Sept 30, 2013) CCL to bring back its printed cruise brochures. In a period of over 5 years now, CCL didn't offer any printed brochures for travel agents as marketing materials. This practice ends with the end of current season - obviously travel agencies need printed brochures to use them for promoting sales and marketing purposes. This decision is a direct result from the line's "Conversations" events (specifically for collecting feedback from agents). More than 1700 Carnival cruise agents were polled in an online survey, so what the new printed materials will include as top priority list is this: itineraries by destination; recommendations from CCL for using travel agency services; the ship's overview, deck plans, on-board activities; cabin descriptions and photos; family programming info; FAQs on dining, dress code, travel docs, etc.
- (Oct 7, 2013) Carnival is launching a new brand-advertising media campaign. It's called “Moments That Matter”, to feature real cruise ship vacation social media gathered photos provided by past Carnival guests. The new campaign's first TV spots were launched in November. The "Moments" campaign will continue through 2014's Q1. At the end of each spot, future Carnival Cruise Lines customers are encouraged to contact their travel agent/agency for further information and planning. The CCL's sales team will be introducing a new show presentation (to be shared at the GoCCL website) which will also highlight the “Moments” theme. This presentations will feature authentic video content (provided by travel agencies) featuring CCL guests booked through them. These Carnival agency-booked customers will discuss in the videos how important their agent was for making their Carnival vacation a most memorable one.
Carnival Corporation news 2013
- The former American Airlines top PR executive Roger Frizzell will join the Carnival team on Monday (June 24, 2013) as a Senior Vice President of the Carnival Corp communications. He'll be reporting only to the chairman and CEO Micky Arison and to the vice chairman & chief operating officer Howard Frank.The Roger's new mission - rebuild the Carnival's "Fun Ship" reputation tainted by the Costa Concordia disaster and the series of Carnival ship mishaps since February this year.
- Carnival Asia department with a new vice president - Paul Chong. The person to whom mr Chong will report is Pier Luigi Foschi, the Carnival Asia's chairman/CEO. The Chong's new priorities are government relations, port infrastructure/operations/guest services, developing strategic regional partnerships, also investments/acquisitions in this region. Paul Chong worked for 13 years for Banyan Tree Holdings Ltd (luxury hotel and resort corporation listed in Singapore).
- Carnival Corp filed a complaint against BAE Systems for the damages caused by the Triumph's April 3 mooring incident (more details - at the ship's link above). Carnival has estimated damages to be US$12,6 million.
(June 25th) After 34 years as number one man of Carnival Corp, Micky Arison resigns as CEO. The new Carnival CEO (named CEO at Micky Arison’s suggestion) is the 12-year company board member Arnold W Donald (58 years old). The new CEO starts in starts July 3rd. Howard Frank stays as second in command on his position of vice chair/chief operating officer. "Mr Carnival Cruise Lines" turns 64 on June 29 (Cancer). Besides The Fun corporation he also owns HEAT (the "Miami Heat" NBA sensation).
- Carnival UK - new executives for P&O UK and Cunard. Jeremy Tait (starting July 1) will be the new insight director of both P&O and Cunard, replacing Peter Shanks (P&O) and Carol Marlow (Cunard). New marketing directors - Chris Edgington (for P&O) and Angus Struthers (for Cunard).
- New technology initiatives by CCL - engine scrubbers on all ships (for reducing air pollution), a new global training center for Carnival crew in The Netherlands.
(cool HOT!) Carnival Corp has named its newest cruise ship (scheduled to enter service 2016). The name of the newest "Fun Ship" game will be Carnival Vista (the 25th ship in the CCL fleet). This ship
will look pretty different compared to the CCL Breeze and Sunshine (currently the newest ones). Itineraries and home port to be announced at a later date.
- (Sept 27, 2013) Carnival Corp will invest over 20 mill € in a new Barcelona cruise ship terminal. Plans are the new "Terminal E" to be opened for the 2016 season, enabling even the biggest cruise ships to dock in Barcelona. It will be build on the Barcelona cruise port's "Adossat" wharf, and will be managed by Carnival Corporation.
- (November 2013) Mr Micky's Miami HEAT team is teaming up with Carnival Corp (all the 10 brands, all employees) and the "Carnival Foundation" donating over US$1 million for the Philippines' Typhoon Haiyan relief works in the region.
Carnival Corporation revenue report 2013 Q2
- Q2 numbers are significantly below the Q2 2012. Earnings are driven mainly by fuel savings – 6% less fuel consumption for Q2 2013 compared to 2012. Lower ticket pricing and higher costs (ship upgrades, and also selling/administrative costs). Expectations for Q3 and Q4 are increasing net cruise costs 3,5-4% (excluding fuel). 2013 Q3-Q4, and 2015 Q1 reported bookings are up (year-over-year basis) at higher prices, excluding CCL (lower bookings at lower prices). They expect CCL prices to grow over time (taking 2 to 3 years to fully recover).
- By 2013 end, Carnival achieved a 23% reduction in fuel consumption (since the fuel-saving initiative was started in 2005).
|indicators / metrics||2013||2012|
|Q2 revenues (expected non-GAAP diluted earnings per share, full-year)||$3,5 bill ($1,45 - $1,65)||$3,5 bill ($1,88)|
|non-GAAP net income [diluted EPS]||$72 mill [$0,09]||$159 mill [0,20]|
|US GAAP net income [diluted EPS] (unrealized losses on fuel derivatives)||$41 mill [$0,05] ($31 mill)||$14 mill [$0,02] ($145 mill)|
|gross ticket revenue (per passenger day)||$140,58||$146,60|
|net ticket prices||$113,36||$118,16|
|net revenue yields (per available lower berth day, "ALBD")||-1,9%||-|
|gross revenue yields||-3,1%||-|
|net cruise costs (excl fuel per ALBD)||+8,8% (mainly due to scheduled refurbishments/repairs costs)||-|
|gross cruise costs (incl fuel per ALBD)||-0,1%||-|
|fuel prices ($ per metric ton)||-9,7% ($683)||($756)|
|fuel consumption (per ALBD)||-5,7%||-|
Carnival cruise news - the 2013 "bad media" coverage
An intelligently-smart person would say "bad media produce nothing but ignorant and stupid people". A street-smart person would say "bad media produce cattle infused with negativity". A philosopher probably would say something like "bad media produce bad people". And they all would be right - because bad media produces good ratings and bad/evil people. It's true that most people tend to be superfluous, knowing their lives only on the surface. They tend to enjoy shallow and easy digestible "true stories" from authoritative media sources, like Reuters, AP (Associated Press), NPR (National Public Radio), and in our Internet times - the online "truth" from ABC News, CNN, Yahoo News, MSN News, etc.
First of all, I totally disagree with all the "bad media" references to Carnival as "the cruise line of problems". It surely was a rough sea and a most tough time for CCL. Most of the big media companies described messy "Carnival experiences" of myriads of passengers - stranded, worried, unhappy, suffering miserable and disgusting conditions. These "only truths" were spurred by both online and print media groups in February and March 2013. It all started with the Triumph engine room fire. Then the "embarrassing" mechanical problems with Dream and Legend happened - and a second rogue wave raised from the "bad media" sea mentioning Carnival once again as the "bad ships experience" line. At the following media analysis you can see details on how CCL was "media treated" in those days (all numbers below are with approximate values).
|War-days dates||number of articles published||number of audience reached||"negativity-positivity" over time|
|Feb 10 (Triumph fire)||200||30 million||0|
|Feb 11||450||300 million||-2|
|Feb 13||650, to reach ~1400 at day's end||750 million||-5|
|Feb 15||1800||850 million||-4,7|
|Feb 17||150||200 mill||-5|
|Feb 19||200, to reach ~400 at day's end||100 mill||-3,8|
|Feb 21||100||50 mill||-3,5|
|Feb 23||less than 30 a day||less than 10 million a day||-2,5|
|March 11||30||30 mill||-1,5|
|March 13 - Legend (Azipods)||200||300 million||+1,8|
|March 14 - Dream (St Maarten, back-up generator)||450||300 mill||-5|
|March 15||400||400 million||-3|
|March 17||less than 50||50 mill.||--5,5.|
Nowadays, in our "big-fun news" days, the media is not reporting news - they are desperately trying to make the news! At Funville, one guy (Linq) commented on the Grandeur of the Seas fire incident and how he was not surprised at all that national media would care less about this apparently "not so bad as Carnival" incident. Linq wrote there, quote "Media outlets have their own agenda and it's playing out in today's political realm. I wonder if CCL made any donations to a specific political party", end of quote.
"Bad Carnival cruise ship" news - let the "bad guys" and money talk
Did you noticed how the populous when charged with negativity goes to the extreme minus? And when left to their senses to reconsider what is what and why, people change their minds rather quickly in the plus direction? While the above numbers are only news-pick values, the numbers that follow are based on page views/comments counters. See also the Top 10 in the anti-Carnival cruise online news alliance. In [brackets] - what media they work for, and the number of articles they've produced in the "Carnival ship accidents" period. Take notice of the fact, that 7 of the top 10 journalists covering the Carnival news were from national or international media companies with significant reach (AP and Reuters), and that 7 of the top 10 media companies also have a huge national and international reach (CNN, Yahoo, MSN).
- the total "bad Carnival news" audience reach of coverage was 3,9 billion readers.
- the total advertising value of the "bad Carnival cruise ship news" campaign alone was US $13,5 million.
- top 10 anti-Carnival journalists: RamitMasti [for AP, 159], Jay Reeves [AP, 136], Kaija Wilkinson [for Reuters, 128], Brendan Farrington [AP, 36], Curt Anderson [AP, 35], Molly Fiske [for LA Times, 35], Bill Chappell [for NPR, 34], Tom Stieghorst [for Travel Weekly, 23], Juan Lozano [AP, 22] and Ginger Otis [for NY Daily News, 20].
- top 10 anti-Carnival online media sources: Cruise Addicts , CNN , New York Daily News , Examiner , Yahoo News , MSN News , Chicago Tribune , ABC News , Orlando Sentinel  and Reuters .
They all have being manipulating their markets since day one - to make money out of bad news. While it's a plain fact that anything can happen just anywhere anytime, it seems the mass-market/mainstream human mind likes so much to dwell on the negatives rather than on the positives. People like to blame people, products, companies, institutions, God, the angels, the devils. And it's the sad truth - people don't like to like.
"Bad Carnival" news means "bad cruise industry" (the impact)
A lot of cable news networks took the "bad Carnival Triumph" story and turned it into the world's most important US news of all times. CNN in particular should be ashamed for its ridiculous to absurd excess in covering this accident. About the industry impact:
- the CCL shares price declined 9,8% compared to the end of 2012. Major cruise lines stock prices changes because of the 2013 accidents (March 14 data): CCL [-1,43%], Royal Caribbean/RCL [+1,28%], NCL/NCLH [-0,97%]. Stock exchange analysts still rate the CCL stock a strong buy.
- cruise travel agents. Many reinforced their hard feelings toward CCL, some praised CCL's reactions for handling the situation. Many expressed confidence that the 2013's strong cruise booking rates would not be affected.
- cruise travel deals. Cruise bookings in North America, and the cruise prices 2013 are much higher than were in 2012. Still, there are record levels of cruise cancellations and low bookings from new cruisers. Apparently, quite a number of travelers were "impressed" by the "bad Carnival" reports.
- first-timer cruisers. Some potential cruisers may not want to get on a Carnival – or any other - cruise ship at all. No one mentions these days that ~120 million people over the last decade have got on a cruise - incidents free.
- too much media - not healthy for business. Cruise ship incidents get more and more attention than is really warranted. It looks like they've replaced the plane crashes with the cruise incidents / accidents as news anchors. The industry became fodder for late night TV comedians. While in general travelers are tolerant of problems that happen on cruise ships, obviously too many people took this to heart, cancelling their cruise deals and booking land-based vacations instead.
- CLIA's "Cruise Line Passenger Bill of Rights" (passenger compensation for affected sailings due to mechanical failures) guarantees: "full refunds for cancelled cruises, partial refunds for early terminated cruises, the right to disembark docked cruise ship if food, water, restrooms or medical care can not be provided on the ship, the right to transportation to the last/disembarkation port or to the passenger's home city".
When you tarnish the name of the world's largest cruise line, you tarnish the name of the world's cruise line industry. More and more people would think of the whole business as a "bunch of big greedy ship owners legally robbing their customers by selling a product that's not so great as advertised". And where is the truth here? Is the Carnival product a bad product?
"Bad Carnival" news cost - the money facts
- the cruise line industry in 2011 contributed over US $40 billion to the US economy.
- ~17,6 million people in North America alone took a cruise in 2013.
- pricing data shows Carnival cruise prices in Spring 2013 dropped ~20% or more for equivalent deals. Observers blamed the hot headlines over Carnival ships problems. As an example, 7-day Carnival Dream Eastern Caribbean cruise deals from Port Canaveral in May 4, 2013, were traded $300 pp - in 2012 similar CCL cruise would have been at least $400 or higher.
- Luckily for the industry, this price dropping issue is 100% CCL and not all cruise lines. According to official Priceline data, CCL prices for April through June are: -20% (Alaska), -18% (Bermuda), -21% (Mediterranean), Carnival Glory Canada cruise deals for July 2013, for example, are -40% (US $480 pp) compared to December 2012 (US $800 pp).
"Good Carnival" news - about the unsinkable Carnival Corporation business model
Despite all the Carnival cruise ship incidents/accidents, CCL stock stayed afloat - Carnival is well and kicking! CCL stock opened down 4,7% on the cancelled ships news, but it bounced more than 50% back after the announcement of the Carnival Corp first-quarter earnings.
- One of the main reasons why CCL recovered so easily from the incidents is that cruise travelers are easily thrilled by "great deal" promotions. Carnival started to promote its business with hugely big discounts (up to 30%) with the line's Early Saver deals - and booking volumes recovered only 3 weeks after the Triumph accident.
- Another key factor for the Carnival's success is that the business is incorporated in Panama. Carnival cruise ships are flagged Panama and Bahamas (flag-states/flag of convenience). Which is extremely beneficial to the business of all the world's largest cruise line companies (like CCL, RCCL/RCI, Disney, etc) - and a tremendous advantage to any US registered business. It essentially makes the cruise travel business generate substantial corporate earnings by exempting from US federal (and other countries) income taxes. Which is always good news for shareholders.
- Carnival Corp is a huge company trying its best to make huge profits to keep its stockholders happy and to increase its market share. This is done aggressively - with low prices, huge discounts, and probably (as all them big players do) with squeezing its suppliers. This is the big money world, where big players play their big games.
- CCL has a great product. "Carnival Cruise" means convenient departure ports, cheap cruise travel deals, big ships with great amenities.
- CCL remains a very popular short-break vacation travel choice. 90,000 employees are constantly dedicated to deliver an super fun vacation experience to 10+ mill travelers each year.
- CCL will continue to dominate the market for big-cheap ship cruises.
Many people could blame Carnival Corporation for many things - bad management, bad PR, low ship maintenance and enhancement budget. But when accidents happen on cruise ships, and the media starts to speak its top-news-money-mind, lets not forget the many thousands of cruise lines employees. They all work hard for their company (and for us!), playing by the rules, putting their heart into what they do every day, pursuing their dreams for a better life. They are and always will be our true friends out there, and the real heroes when things go wrong at sea. Staff and crew are the best part of the CCL product, and they deserve our thanks - for their loyalty and support, and for all our fun times at sea.