Arnold Donald has done an impressive job turning around Carnival Corp.'s image. Now he has to lead it into the future in an extremely competitive global cruise market.
Carnival Corp. had a strong quarter at a time when some competitors struggled, but questions will remain about how quickly the industry is growing in China.
Global cruise lines have been feeling the pressure on pricing as more competitors enter China. Still, MSC Cruises is betting that the market will be ready for a second ship from the line in 2018.
Carnival Corporation is putting a lot of effort into getting its cruise ships, destinations, and shore activities in front of a massive audience. Smart travelers will realize they're seeing a highly produced, promotional version of a cruise experience.
River cruising in the United States is growing slowly, but we expect to see this segment continue to gain popularity — especially with travelers who are fond of the close-to-land experience but don't want to travel overseas.
The concept of a cruise to Cuba — even one without typical beach-day shore excursions — is easier to communicate than a social impact trip to the Dominican Republic. Even though voluntourism was the original goal of Fathom, we're not surprised that the cruise line is making the business decision to cater to the highest demand.
It looks like Carnival Corp. has found a ship type it likes. Including the order announced Tuesday, the cruise company is adding seven 5,200-passenger megaships that are powered by liquefied natural gas across four brands.
As Carnival's experience shows, doing business in Cuba as an American company is complicated — especially in these early days while relations are normalizing but the embargo remains in place. Travel companies catering to U.S. citizens need to be flexible, detail-focused, and patient.