FY2017 Guest Experience Performance

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MedallionClass Vacations deliver more personalized, immersive, and simple guest experiences, thanks to an innovative experience platform. Launched in November 2017 onboard Regal Princess, MedallionClass leverages a proprietary experience “Internet of Things” to enable more personalized experiences at scale.

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In 2017, we launched OceanView™ our proprietary digital streaming network featuring compelling experiential content 24/7, which is available on ocean.com; major digital platforms including Roku, AppleTV and Amazon Fire TV; via the OceanView mobile app (coming in 2018); as well as on board our ships. OceanView launched simultaneously with two new proprietary original content digital productions, “Go” and “Local Eyes”, that complement our other award-winning television shows. These television programs have generated over 100 hours of cumulative airtime and reached an audience of over 200 million viewers. These series engage all audiences while inspiring them to travel the world and allow us to continue to educate consumers about the cruise experience. To learn more visit https://www.ocean.com/ocean/oceanview

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In 2017, we introduced a proprietary portfolio of original mobile games that expand gaming into new categories by providing the opportunity to play anytime, anywhere for fun, and for passengers on select ships the opportunity to enjoy enhanced game play and wager anywhere on board.

With the launch of our PlayOcean gaming portfolio, Carnival Corporation is the first travel company to produce original mobile games catering to the vacation market.

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Our Holland America Line and O, The Oprah Magazine, have partnered on an exciting initiative that is uniting the soul-stirring power of travel with O’s deep commitment to wellness, connection and personal growth through a series of cruises and activities that is bringing the magazine to life for all on board. To learn more visit www.hollandamerica.com

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Majestic Princess started operations in 2017 and is the first Princess Cruises ship designed specifically for Chinese guests. She features a combination of new elements tailored for the Chinese market, along with many of Princess Cruises’ premium points of distinction. Majestic Princess is homeported in Shanghai, China year-round for a series of Asia cruises to Japan and Korea. The Majestic Princess carries the Chinese name “Sheng Shì Gong Zhu Hao” on the hull, a name chosen by our Chinese employees. Yao Ming and Ye Li graciously accepted our invitation to officially name Majestic Princess and served as the Inaugural Cruise Ambassadors. Yao Ming and his wife, Ye Li, were both born in Shanghai and were both team members of China’s national basketball teams. Yao Ming is an icon, one of the world’s best-known athletes, a global ambassador of basketball, an eight-time NBA All-Star, and most recently, an inductee into the NBA Hall of Fame.

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In 2017, our award-winning television programs generated over 100 hours of cumulative airtime and reached an audience of over 200 million viewers. Now in Season 2, these series engage all audiences while inspiring them to travel the world and allow us to continue to educate consumers about the cruise experience.

Our original content portfolio — “Vacation Creation” (ABC), “Ocean Treks with Jeff Corwin” (ABC), “The Voyager” (NBC) – attract almost 5 million viewers every week, and can also be viewed on the company’s digital streaming channel – OceanView™ – available on Roku, Apple TV and Amazon Fire TV. Content on OceanView also includes “Good Spirits” (A&E), “La Gran Sorpresa” (Univision), and two direct-to-digital series – “GO” and “Local Eyes.”

We also use our original programming as an opportunity to showcase ways we are working to protect the world’s oceans and seas, and educate and inform viewers about how they too can reduce their footprint as they travel the globe.

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During 2016 and 2017, Fathom was our first brand to take guests to Cuba, allowing us to become the first North American Cruise operator in over 40 years to bring U.S. cruise guests directly from the U.S. to Cuba and to return to Cuba. In 2017, Carnival Cruise Line and Holland America Line also received approval to sail to Cuba, extending the number of brands offering the experience. Fathom offers unique and playful purpose-driven travel experiences and gives travelers meaningful opportunities to come alongside locals and participate with community-driven initiatives. In 2017, we also expanded the Fathom experience to all our brands by offering customizable, group experiences, called Travel Deep Groups to deeply connect and inspire like-minded guests. To learn more, visit www.fathom.org

Our Commitment

This year, we had the privilege of taking 12.1 million guests on vacation across our 103 ships. Cruising appeals to a broad range of ages and income levels. The average age of a cruise guest varies by brand and ranges from approximately 40 years to 60 years across contemporary, premium and luxury cruise categories. Cruising provides something for every generation, from kid clubs to an array of on board entertainment provided to teens and adults. Cruising also offers transportation to a variety of destinations and a diverse range of ship types and sizes, as well as price points, to attract guests with varying tastes and from most income levels.

Our Strategy

No matter what type of cruise our guests choose, providing excellent service and guest satisfaction is at the heart of our guest service strategy. Guest feedback also provides insight into how we approach our relationships with this key stakeholder group. We consider their feedback to be of vital importance.

Whether they are first-time cruisers or long-time cruise enthusiasts within our brands, we invite them to return and inspire them to recommend our brands, thereby sustaining our business. To encourage more first-time cruisers, we have shortened the duration of some cruises, which has broadened the appeal for cruising. Our brands also have multiple pricing levels that vary by cruise brand, category of cabin, ship, season, duration and itinerary. We continue to upgrade and enhance the vacation experiences we offer with new features as part of our effort to attract first-time cruisers and keep our product exciting for repeat guests.

We are proud to offer a wide array of gaming opportunities for the enjoyment of our guests. We also support a Responsible Gaming program designed to assist our guests in making responsible choices through knowledge and empowerment. Our approach to Responsible Gaming forms an integral part of this commitment. Responsible Gaming occurs in an environment where management and staff have been suitably educated to assist guests so that the potential for harm associated with gambling is kept to a minimum and our guests are able to make informed decisions. Responsible Gaming information is posted in all our onboard casinos and guests can choose to self-exclude from participating in casino gaming activities by registering with the Casino management.

Although the vast majority of our guests are highly satisfied with their vacation experience, there are occasional complaints. Resolving issues in an expedient manner during the cruise, rather than having guests wait until they return home to make contact, enables guests to more fully enjoy their vacations. This approach also provides us with a valuable on-the-spot learning tool that supports improvement of policies, procedures and the overall cruise product. Guests also have different means available to convey their opinions and their level of satisfaction to the company. A common tool is a survey provided to guests after their cruise, through which guests may express their opinions about the various aspects of the service and assign a performance score to each aspect.

Taking care of our guests during a crisis is also part of our duty. We have a dedicated group of CareTeam members who are trained to respond to a variety of emergencies, primarily medical-related situations, and are dispatched to locations throughout our cruising regions to provide personalized support and assistance as needed to all of our brands. The CareTeam members are committed to assist our guests, as well as their families, friends and loved ones and provide them with compassionate assistance and support during challenging situations.

To further care for guests, we support the passenger Bill of Rights, which details our commitment to the safety, comfort and care of our guests. It specifically addresses delays, cancellations and other unplanned events. The Passenger Bill of Rights codifies many long-standing practices of our organization and Cruise Lines International Association (CLIA) member lines and it also goes beyond some practices to further inform cruise guests of our commitment to their comfort and care.

Protecting our guests’ privacy is also extremely important to our guests and business. We have dedicated privacy teams that oversee our data privacy programs. We have also implemented privacy standards, which require the conduct of reviews of the adequacy of the privacy program.