2016 was another very successful year for our company on many fronts. We continued to operate safely and responsibly, and to produce sustained earnings improvement. Most importantly, we delivered great cruise vacations to 11.5 million guests around the world. Our guests put their trust in us to provide them with holiday memories to last a lifetime. Thanks to the commitment and passion of our shipboard and shoreside team members, along with the support of our valued travel agent partners and a global network of suppliers, we continue to consistently exceed our guests’ expectations. Through our collective efforts, we overcame significant obstacles in 2016 – including the simultaneous negative impact from fuel and currency, a series of global geopolitical challenges such as the events in Turkey, Paris and Brussels, concerns with the Zika virus outbreak and macroeconomic factors such as Brexit – to achieve the most profitable year in our history, as well as a significant number of milestones that will contribute to our future success.
As always, we remain firmly committed to being a responsible corporate citizen and continue to make meaningful progress on our 2020 sustainability goals. With our strong, ongoing focus on environmental, safety, labor and community performance, I am pleased to report that we made significant progress on our 2020 carbon reduction goal. All of our 2016 accomplishments are building blocks, which leave us well-positioned to continue our strong leadership in the cruise industry.
To our employees, I extend a warm and sincere thank you. I am constantly inspired and amazed by their extraordinary dedication, commitment to excellence and shared vision of building upon our company’s great legacy. Our goal is to consistently exceed our guests’ expectations – and through the passion of our employees from ship to shore, we deliver time and time again. I invite you to read our 2016 sustainability report and share your thoughts with us here.
Arnold W. Donald – President & CEO, Carnival Corporation & plc
The following is a summary of key sustainability events, trends and actions within our cruising, commitment and community efforts throughout the year.
We introduced three new ships in 2016: Carnival Vista for Carnival Cruise Line, ms Koningsdam for Holland America Line and AIDAprima for our German-based AIDA Cruises. Carnival Vista was designed specifically for our fun-loving Carnival Cruise Line guests with an onboard brewery experience, first-in-the-industry IMAXTM Theatre and exhilarating SkyRide aerial attraction. We celebrated her U.S. arrival with an onboard concert for Operation Homefront military families featuring country music superstar Carrie Underwood. And we were honored to have Miss USA, Deshauna Barber, herself a military officer, serve as the ship’s godmother. Holland America Line’s ms Koningsdam, christened in Rotterdam by Her Majesty Queen Maxima of the Netherlands, delivers a new premium experience where our guests can blend their own wine or dance the night away in our expertly engineered Music Walk showcasing Lincoln Center Stage, Billboard Onboard and B.B. King’s Blues Club. And last but not least, AIDAprima made its debut with a spectacular light show, fireworks and memorable naming ceremony witnessed by over 1 million people gathered in Hamburg, Germany. AIDAprima resonates with AIDA’s German guests by combining leading-edge environmental attributes with exceptional guest experiences, including racing water slides, a lazy river, climbing walls, an expansive spa and an ice rink for skating, hockey, curling and even a traditional Christmas market. All three of our new ships were delivered with the latest energy efficiency technologies. We also continue to invest in our existing fleet to further enhance guest experiences, including the recent remastering of Cunard’s Queen Mary 2 and the continued roll-out of Fun Ship 2.0 across the Carnival Cruise Line fleet.
To increase broad awareness of and demand for cruising as a great vacation option, we launched three original TV programs airing on major U.S. networks – ABC, NBC and the CW – during the popular family-oriented programming blocks. Each program’s episodes showcase our brands providing an exceptional vacation while highlighting ocean travel as a way to experience exciting global destinations and learn about other cultures. This successful programming comes on the heels of many impactful shows – including a reality-based television series in the UK called “The Cruise” that was filmed onboard Regal Princess, and P&O Cruises’ “Battlechefs,” filmed onboard Britannia. In Italy, “Bravo Chef” was taped onboard our Costa ships and a major motion picture, “Holidays in the Caribbean,” was filmed on Costa Fortuna. In North America, Carnival Cruise Line was featured on “Wheel of Fortune” and “The Ellen DeGeneres Show.”
ENHANCED GUEST EXPERIENCE – OCEAN MEDALLIONTM
As part of our continuous efforts to enhance our cruise products and services, we developed the world’s first interactive guest experience platform capable of transforming vacation travel into a highly personalized and elevated level of customized service on a large scale. In January, we were privileged to be the first travel company to deliver the opening keynote address to attendees from around the world at the Consumer Electronics Show (CES) in Las Vegas, the world’s largest trade show. There we unveiled the Ocean MedallionTM, a first-of-its-kind wearable device that enables every guest to have a personal digital concierge to maximize their vacation experience. The Ocean MedallionTM bridges the physical and digital worlds to deliver a new level of personalized service not previously considered possible. The quarter-sized, 1.8-ounce disc has no on/off button, needs no charging and can be accessorized with jewelry, clips, key chains and bands, or simply carried in a pocket. We plan to roll out this new guest experience in 2017.
PIONEERING THE USE OF LIQUEFIED NATURAL GAS (LNG)
We have seven new LNG cruise ships on order. These new vessels will be part of the first generation of cruise ships to be fully powered by LNG. Pioneering a new era in the use of low carbon fuels, these new ships will use LNG to generate 100 percent of their power both in port and on the open sea – an innovation that will significantly reduce exhaust emissions to help protect the environment and support our sustainability goals. In 2016, we delivered AIDAprima, the first cruise ship in the world with a dual-fuel engine that can be powered by LNG. The ship switches to LNG while in select ports in Europe, with LNG supplied by trucks on the pier. Switching from marine diesel fuel to LNG provides many air emission benefits:
- 0 Sulfur Dioxide emissions
- 25% reduction in Carbon emissions
- 85% reduction in nitrogen oxides
- 95-100% reduction in particulate matter
As part of our strategy, we signed a framework agreement with Shell Western LNG B.V. (Shell) to be our supplier for the fuel to power our first fully LNG-powered cruise ships. We look forward to a productive partnership with Shell, which has the experience and shared commitment to quality, safety and operational efficiency needed to help us bring this innovative LNG initiative to life.
PROTECTING OUR OCEANS
As a responsible corporate citizen, we recognize that our reputation and success depend on being transparent and responsible. In December 2016, Princess Cruises, one of our brands, entered into a plea agreement with the U.S. Department of Justice as a result of irresponsible actions by some employees who violated company policies and environmental law. Together with Princess we are using this experience to further improve how we operate to protect and preserve our oceans. We are committed to environmental stewardship and are very sorry for the actions taken by a few of our employees.
ARISON MARITIME CENTER
Our employees are the heart of our operations and our goal is to be a leader in providing them with high-quality training opportunities. We have training centers located in a number of locations worldwide, and they are an essential component of our training strategy. One of these training centers is the new Arison Maritime Center, home of the Center for Simulator Maritime Training Academy, also known as the CSMART Academy. The center opened in July 2016 and honors the legacy of the Arison family, who founded and grew Carnival Corporation into the world’s largest cruise company. The new 75 million euro facility is located in the Netherlands and consists of a seven-acre campus which includes the training center and an adjoining hotel. In this world-class facility, we deliver state-of-the-art maritime training for our bridge and technical teams through cutting-edge bridge and engine room simulators.
FATHOM – TRAVELdeepTM
We launched our TRAVELdeepTM brand Fathom in April 2016 with an inaugural sailing to the Dominican Republic, to give travelers meaningful opportunities to participate with locals as they tackle community driven initiatives. In this short time, our Fathom guests have already made a meaningful impact in the Dominican Republic, including planting more than 30,000 seeds and trees to support reforestation efforts, providing nearly 25,000 hours of English-language lessons to help both children and adults learn conversational English, and producing nearly 1,000 water filters to provide families with clean drinking water and reduce illness. Through Fathom, we became the first cruise company in more than four decades to begin operating voyages from the U.S. to Cuba, an effort that included a change to a long-standing practice in Cuba that no Cuban-born individual could come or go to Cuba by sea. This moment led to worldwide media coverage and billions of positive media impressions.
DIVERSITY & INCLUSION
As we continue to build a diverse and inclusive workforce, we are honored to be recognized for the third consecutive year among the top companies as a best place to work for LGBTQ equality by the Human Rights Campaign. We were also recognized by Black Enterprise Magazine as one of the 50 best companies for diversity. Additionally, as part of our initiative to improve sustainability performance in our supply chain, we revised our Business Partner Code of Business Conduct & Ethics to include our efforts to further combat slavery and human trafficking.