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About Carnival Corporation

Carnival Corporation offers a boatload of fun. The company is the world's most popular cruise line, boasting nine leading cruise lines and over 80 ships with a total passenger capacity of more than 230,000. Carnival operates in North America primarily through its Princess Cruise Line, Holland America, and Seabourn luxury cruise brand, as well as its flagship Carnival Cruise Lines unit. Brands such as AIDA, P&O Cruises, Costa Cruises, and Cunard offer services to passengers in Europe and Asia. While P&O Cruises offer services to passengers in Australia. Carnival operates as a dual-listed company with UK-based Carnival plc, forming a single enterprise under a unified executive team. North America accounts for about 55% of total sales.

Operations

Carnival's four reportable segments include NAA cruise operations, EA cruise operations, Tour and Other and Cruise Support. NAA manages operations in North America and Australia, which includes Carnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises (Australia) and Seabourn. The segment accounts for around 65% of revenue.

Accounting for around 30% of revenue, the EA segment operates in Europe and Asia which includes Costa Cruises, AIDA Cruises, P&O Cruises and Cunard. The company's Cruise Support segment includes its portfolio of leading port destinations and other services, all of which are operated for the benefit of its cruise brands. The Tour and Other segment represents the hotel and transportation of Holland America Princess Alaska Tours and other operations.

Geographic Reach

Carnival's global headquarters are located at Miami, Florida. The company has shoreside locations in other US states including California and Washington, as well as in other countries which include Australia, China, Italy, Netherlands, and Germany. 

Carnival's largest market is North America, which represents about 55% of sales. Other major markets include Europe (about 30%), and Australia and Asia (almost 15%).

Sales and Marketing

Substantially all its cruise brands offer past guest recognition programs that reward repeat guests with special incentives such a reduced fares, gifts, onboard activity discounts, complimentary laundry and internet services, expedited ship embarkation and disembarkation as well as special onboard activities.

Financial Performance

Carnival's revenue has been on an upward trend from 2016 to 2019 and dropped to $5.5 billion in 2020. This was primarily due to the pause in their guest cruise operation.

In 2020, Carnival reported a net loss of around $10 billion caused by the pause of global cruise operations due to COVD-19.
Cash holdings increased from $982 million in 2019 to $9.6 billion in 2020. While Operations used $6.3 billion, investments utilized $3.2 billion, and financing activities generated nearly $19 billion. The company issued $22.1 billion in long-term debt in 2020.

Strategy

Carnival has remained the top player in the commercial cruise ship space for over a decade. Its strategy has included spending top dollar on brand recognition through innovative marketing and advertising campaign across diverse mediums to promote products and services to vacationers and their travel agent partners. The company's digital marketing and social media strategy have attracted new guests online as well.

In 2020, as part of their capacity optimization strategy, Carnival accelerated the removal of ships from its fleet which were expected to be sold over the ensuing years.  However, the company has announced in January 2021 plans for additional ship deployments as it prepares to return to guest operations within the year. Each of the company's cruise brands releases prices for the upcoming seasons online and through direct mailings. Its brands have different price points that vary by source market, category of accommodation, ship, season, duration and itinerary. The company also offers special promotions such as early booking, past guest recognition, and travel agent programs. To reach its primary financial goals, the company continues to implement initiatives to create additional demands to its brands in excess of its planned capacity growth. It continues to invest in customer and market insight to better understand their guests' decision making process and vacation needs enabling them to identify new marketing opportunities and further grow their share of their vacation spend. As it operates in the broader vacation market, the company implemented strategies to grow demand by increasing consumer awareness and consideration for cruise vacations on its portfolio brands through its ongoing marketing, public relation and guest experience efforts.

Company Background

Carnival Corporation was incorporated in Panama in 1972 and Carnival plc was incorporated in England and Wales in 2000, operating as a dual-listed company.

Carnival Corporation

4000 N Mingo Rd
Tulsa, OK 74116-5020
Phone: 1 (918) 838-7579

Firm Stats

Employer Type: Privately Owned
Branch Manager: Barry Holt
Director: Patrick Irons
Employees (This Location): 90

Major Office Locations

Tulsa, OK