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.
Cruising offers a broad range of products and services to suit vacationing guests of many ages, backgrounds and interests. Each brand in the company’s portfolio meets the needs of a distinct set...
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.
Cruising offers a broad range of products and services to suit vacationing guests of many ages, backgrounds and interests. Each brand in the company’s portfolio meets the needs of a distinct set of consumer psychographics and vacation needs which allows it to penetrate large addressable customer segments. The mobility of cruise ships enables the company to move its vessels between regions to meet changing demand across different geographic areas.
Cruise brands can be broadly classified as offering contemporary, premium and luxury cruise experiences. The contemporary experience appeals to a broad segment of the cruise vacation industry, including families with children of all ages, features a variety of activities and entertainment venues and historically includes cruises that last seven days or less. The premium experience emphasizes quality, comfort, style and more destination-focused itineraries. The premium experience generally includes cruises that last from seven to 14 days. The luxury experience is generally characterized by very high standards of accommodation and service, smaller vessel size and exotic itineraries to ports that are inaccessible by larger ships. The company has product and service offerings in each of these three broad classifications.
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 represent the hotel and transportation operations of Holland America Princess Alaska Tours and other operations. The company’s tour company owns and operates hotels, lodges, glass-domed railcars and motorcoaches which comprise its Tour and Other segment.
Global Cruise Business
Ships Under Contract for Construction
As of November 30, 2024, the company had a total of six cruise ships expected to be delivered through 2033. The company’s ship construction contracts are with Fincantieri in Italy and Meyer Werft in Germany.
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.
During 2024, the company announced that it will sunset the P&O Cruises (Australia) brand and fold its Australia operations into Carnival Cruise Line in March 2025. Pacific Encounter and Pacific Adventure will be transferred to Carnival Cruise Line in early 2025 and Pacific Explorer is expected to leave the fleet in February 2025.
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 nearly 60 years in the most sought-after destinations. Princess combines extraordinarily 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 with expertly crafted itineraries, extraordinary service and genuine connections to destinations. Holland America Line visits over 100 countries around the world and has shared the thrill of Alaska with guests for more than 75 years with its ideal mid-sized ships. Guests enjoy extraordinary entertainment at sea and dining venues featuring exclusive dishes by world-famous chefs.
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 over 75 years, Costa has brought wonder to guests’ lives, allowing them to discover unique destinations and experiences both onboard and onshore. Costa's warm hospitality and high-quality onboard services feature a true European touch and Italian passion, setting Costa apart from any other cruise experience.
AIDA is the most recognized brand in the German cruise market. Its ships visit many beautiful destinations around the world and bring together people of all ages. AIDA inspires guests with excellent service and a variety of extraordinary experiences. The smile on the bow of the ships represents the unique AIDA attitude on life — relaxed, friendly, colorful, cosmopolitan and uncomplicated.
P&O Cruises (UK) is Britain’s largest cruise line, and its heritage can be traced back over 185 years. P&O Cruises (UK) welcomes 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 nearly 185 years, the iconic Cunard fleet has perfected the timeless art of luxury ocean travel. Cunard’s distinct voyages are meticulously crafted to offer fine dining and bars, unique entertainment, and the famous White Star Service, comfort and style. A pioneer in transatlantic journeys and World Voyages, its destinations also include Europe, the Caribbean and Alaska.
Seasonality
The company’s passenger ticket revenues are seasonal. Demand for cruises has been greatest during its third quarter, 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 its 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 6.5 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.
The company has announced plans to enhance Half Moon Cay, its highly rated and award-winning exclusive Bahamian destination. The enhancements will lean further into this destination’s natural beauty and pristine appeal, reinforcing its new name – RelaxAway, Half Moon Cay. Featuring a newly constructed pier that is expected to open in the summer of 2026, the destination will allow two ships to dock, including Carnival Cruise Line’s largest ships that will be able to visit for the first time.
During 2024, the company continued construction on its new exclusive cruise port destination, Celebration Key, which is expected to open in the summer of 2025, with an additional pier opening in the fall of 2026. Celebration Key, located on the south side of Grand Bahama Island, will welcome guests to a stunning beach and further expands its experience offerings with an abundance of features and amenities for its guests. Once the additional pier is completed, Celebration Key will be able to accommodate up to four of the company’s cruise ships simultaneously. Additionally, the company’s investment in Celebration Key will support its efforts to design more energy efficient itineraries based on its location and will be a strategic addition to its portfolio of six owned or 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; RelaxAway, 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 2024, 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 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.
Government 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.
