Why Carnival, the biggest Cruise company, facing shortage of ships to deliver?

Alan Joseph Alan Joseph
Jun 29, 2021 5 min read
Why Carnival, the biggest Cruise company, facing shortage of ships to deliver?

The tourism and hospitality industry were the most affected during the Coronavirus pandemic and is still said to have been reviving from it. Some of the 5-star hotels have been shut down as they did not have the revenue to pay the employees.

Carnival which is the world’s biggest cruise company has reported that their demand has been increasing. The company had sold around 19 ships during the pandemic and reduced its capacity to 13%. But now the company is planning to buy back the ship and increase it by around 2.5%. In this article let’s look at the reason for the increase in demand.

Carnival – Latest News
Reason Why demand for Ships Increased
Carnival CEO on the Rising Demand of Cruise bookings
Carnival CEO on Covid Precautions
Carnival CEO on Unvaccinated Passengers
Carnival Company’s new Cruise launch
FAQ

Carnival – Latest News

Carnival is the world’s biggest cruise company. The CEO of Carnival has conveyed that there is a huge demand for travel and the number of strips is outnumbered by the demand. The CEO of Carnival Corp has stated that the demand across its 9 cruise lines is rapidly increasing and added that the Americans are enthusiastic and eager to get back on the water.

Arnold Donald, the CEO of the world’s biggest cruise company has said that people are impatiently waiting to get back to cruise again. He added that the company has no issues in being able to fill the ships. People are ready to sail but the fact is that the company has far more demand compared to the ships that they have available right now to supply.

Reason Why demand for Ships Increased

The CEO has stated that the people are confident about the safety measures taken by cruises and even the vaccine roll out is being continued in the United States. The vaccine shots have acted as a huge game changer and according to Arnold Donald, the bookings were vigorous and the most highest in the history of the company.

People are ready and are spending a lot of money on board. Travelers are eager to spend their money on extra cash items such as Casinos, luxury meals, massages, etc.

Carnival CEO on the Rising Demand of Cruise bookings

Arnold Donald has said that during the second quarter of the company’s business update that was held on 24 June 2021, the company has conveyed that the booking volume of the cruises in the future was higher than the 1st quarter of up to more than 45%. He stated that the advance bookings for 2022 were way higher than 2019 due to the increased demand amongst the people.

Revenue of Carnival Corporation & plc worldwide
Revenue of Carnival Corporation & plc worldwide

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Carnival CEO on Covid Precautions

While speaking about the Covid precautions taken on board the CEO of Carnival Corp has conveyed that some of the cruise lines of Carnival including Costa, have been sailing out of Europe during the Pandemic.

He added that most of the travelers were unvaccinated but the company had ensured that it took necessary precautions and followed the basic SOPs such as social distancing, wearing masks, periodical Covid tests and intense medical screenings.

The CEO added that the guest satisfaction scores were flying high as there were less than 50 cases of Covid positive reported out of around 400,000 guests that were onboard.

The company is expecting some unvaccinated people to be on board from the United States and also adds that these passengers and Travelers will have to take the necessary Covid measures which include wearing masks and periodic Covid tests.

Carnival CEO on Unvaccinated Passengers

The world’s biggest cruise and also the celebrity cruise had laid down new regulations that were subjected for the unvaccinated passengers. The passengers or travelers that haven’t taken the vaccination or did not want to show the proof of vaccination intake will have to go through certain onboard restrictions, additional costs and Covid tests. However, the company has conveyed that the passengers who are fully vaccinated would prevent from the risk of spreading the Covid-19.

The CEO conveyed that if the virus is on board, then there are chances that the passengers would catch it even though the company has put a lot of restrictions. However, he clarified it by adding that they can’t guarantee on not being a single case on board but the chances of an outbreak seem to be really low.

A fully vaccinated cruise, Royal Caribbean cruise that was sailing from the Bahamas has tested two positive cases of Covid-19 from two of the passengers on board. Both the passengers were under the age of 16 and were exempted from the vaccine mandate.


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Carnival Company’s new Cruise launch

The company has a launched a new cruise which is the latest cruise. The cruise would set its sail on 31 July 2021 from Port Canaveral to Easter and the Western Caribbean. The cruise is the first in the world to have a roller-coaster on board and also the first cruise in the Northern America to be run on a liquefied natural gas.

Conclusion

The company is expected to sailing at least 52% of its capacity by the end of November and is expecting to have its entire fleet into operation by the spring of 2022.

FAQ

Has Carnival Cancelled any cruises?

Carnival Cruise Line cancelled some of its July 2021 cruises, but it will still sail some ships from the U.S. in July.

What is the Revenue of Carnival cruise?

The revenue of Carnival Cruise in 2020 was 559.5 crores USD.

What is Carnival Cruise net worth?

The net worth of Carnival in 2020 was US$−10.236 billion, as due to Covid restrictions the company faced a huge loss.

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