Carnival Corporation is incorporated in Panama, and Carnival plc is incorporated in England and Wales. Carnival Corporation and Carnival plc operate a dual listed company (DLC) arrangement, whereby the businesses of Carnival Corporation and Carnival plc are combined and they function as a single economic entity through contractual agreements between separate legal entities. Shareholders of Carnival Corporation and Carnival plc have the same economic and voting interest but their shares are listed on different stock exchanges and are not fungible. Carnival Corporation is traded on the New York Stock Exchange (NYSE) under the symbol CCL. Carnival plc is traded on the London Stock Exchange under the symbol CCL and as an American Depository Share on the NYSE.1
1) Carnival Corporation & plc includes divisional brand Carnival Cruise Line, referred to in this report as “Carnival Cruise Line.”
Although the name Carnival Corporation didn’t come into existence until 1994, the foundation for our company was laid when our flagship brand, Carnival Cruise Line, was formed. Carnival Cruise Line got its start in 1972 with a single ship, the Mardi Gras, a converted ocean liner. The success of the Mardi Gras was instrumental in our growth. The entrepreneurial spirit and pioneering vision of our founder, the late Ted Arison, provided a solid foundation for our company’s future.
After achieving its position as “The World’s Most Popular Cruise Line”, in 1987 Carnival Cruise Line made an initial public offering of 20 percent of its common stock which provided the initial influx of capital that allowed our company to begin expanding through acquisition.
In 2003, agreements were finalized to combine Carnival Corporation with P&O Princess Cruises plc, creating the world’s first global cruise operator – Carnival Corporation & plc. Over the years, we have acquired a leadership position in virtually every market segment of the cruise industry.
Cruising to Cuba
In May 2016, Carnival Corporation & plc became the first U.S. cruise operator in over 40 years to bring U.S. cruise guests directly from the U.S. to Cuba. Our guests visit three beautiful and unique destinations on the island all in one week. Our Fathom brand takes them to Havana, Cienfuegos and Santiago de Cuba. They are experiencing a wide variety of activities covering an array of interests, ranging from an orientation of Cuba’s history, costumes and culture, to geography-inspired entertainment, casual and fun personal enrichment activities, and even conversational Spanish lessons. Expanding the Cuba experience to our other brands, in February 2017, Carnival Cruise Line was granted approval to begin sailing to Cuba in June 2017. These visits will consist of overnight stays in Havana as part of four and five day cruises.
SERVICES AND OPERATING STRUCTURE
Each of our brands is a leader in its respective market segment, has a well-known brand name and has a responsibility to operate sustainably as part of our strategy. We manage the company in a “Group” or “Operating Line” structure. During 2016, the following Carnival Corporation & plc Operating Lines operated and managed one or more of our cruise brands:
- Carnival Cruise Line.
- Carnival UK, which operates Cunard, P&O Cruises (UK) and shares responsibilities for Fathom’s operation.
- Costa Group, which operates AIDA Cruises and Costa Cruises.
- Holland America Group, which operates Holland America Line, P&O Cruises (Australia), Princess Cruises, Seabourn and shares responsibilities for Fathom’s operation.
In addition to our cruise operations, we own Holland America Princess Alaska Tours, the leading tour company in Alaska and the Canadian Yukon, which complements our Alaska cruise operations. Our tour company owns and operates hotels, lodges, glass-domed railcars and motorcoaches. We also operate a portfolio of leading port destinations and private islands in select geographies around the world.
Additional details relating to our company, Corporate Operating Structure and organization are disclosed in the Carnival Corporation & plc 2016 Annual Report to Shareholders and in our Annual Report on Form 10-K on the Carnival Corporation & plc website: www.CarnivalCorp.com
SCALE OF ORGANIZATION
We employ over 84,600 crew members on board our ships at any given time. Our shoreside operations employ approximately 10,500 full-time and 2,100 part-time/seasonal employees. As of January 19, 2017, we operated 102 cruise ships, with a total passenger capacity (based on double occupancy) of 221,000 guests.
We are among the largest, most profitable and financially strong leisure travel companies in the world with a market capitalization of over $38 billion at January 19, 2017. Our FY2016 revenues were approximately $16.4 billion and total assets as of November 30, 2016 were approximately $38.9 billion. In 2016, we took 11.5 million guests on vacation. Our products provide our guests with exceptional vacation experiences at an outstanding value.
We continue to grow our presence in established markets and increase our penetration in developing markets, such as Asia. We believe that we have significant opportunities to continue to profitably grow our presence in China due to its large and growing middle-class population, expansion of its international tourism and the government’s plan to support the cruise industry. Including the introduction of a Princess Cruises ship, the Majestic Princess built specifically for Chinese guests in 2017, 6% of our total capacity will be deployed in China.
Fleet and ORGANIZATIONAL DYNAMICS
We are building new, innovative, purpose-built ships that are larger, more fuel efficient, have a greater number of balconies and present a wider range of onboard amenities and features. These ships further enhance the attractiveness of a cruise vacation while achieving greater economies of scale and resulting in improved returns on invested capital.
During FY2016, we added four new ships and removed one ship:
- AIDAprima was added to AIDA Cruises
- Carnival Vista was added to Carnival Cruise Line
- ms Koningsdam was added to Holland America Line
- Seabourn Encore was added to the Seabourn fleet and began cruising in FY2017
- Ocean Princess left the fleet
As of January, 2017, we have a total of 19 cruise ships scheduled to be delivered between 2017 and 2022. Some of these ships will replace existing capacity as less efficient ships exit our fleet. We continue to make substantial investments in our existing ship enhancement programs to improve our onboard product offerings and enrich our guests’ vacation experiences.
In an effort to extend our commitment to sustainability and to play a leading role in matters of environmental protection in the cruise industry, we are expanding our investment in the use of low carbon fuels, in particular, liquefied natural gas (LNG). We have seven next-generation cruise ships on order that will be the first in the industry to be powered at sea 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 reduce carbon emissions to help protect the environment.
In December 2016, Alan B. Buckelew, who has served as Carnival Corporation & plc’s Chief Operations Officer, based in Shanghai since 2014, returned to the U.S. in a new role as Chief Information Officer. With this change Michael Thamm, Group CEO, Costa Group and Carnival Asia, now oversees operations in China as part of his expanded role. Thamm has been Group Chief Executive Officer of Costa Group since 2012 and of Carnival Asia since December 2016. In this capacity, he is responsible for Costa and AIDA and management oversight of all Asia operations.
In December 2016, Jan Swartz was promoted to Group President, Princess Cruises and Carnival Australia to further drive coordination across the seven Carnival Corporation brands in the Australia/New Zealand region. Swartz’s portfolio, in addition to leading Princess Cruises, includes responsibility for the Carnival Australia shared services for the Carnival Corporation brands operating in and sourcing from Australia. She also directly oversees the P&O Cruises Australia brand.
There were no other significant changes during the reporting period regarding the size, structure, or ownership of Carnival Corporation & plc.
ALAN B. BUCKELEW
Chief Information Officer
Carnival Corporation & plc
Princess Cruises and Carnival Australia
Costa Group and Carnival Asia
FY2016 Business Dimensions & Direct Economic Value Generated and Distributed1
Number of Guests
Number of Ships
Average number of Employees
Payroll and related
Interest expense, net of capitalized interest
1 As of November 30, 2016 Annual Report on Form 10-K
2 Capacity is based on two guests per cabin
3 Additional financial data can be found in the 2016 Annual Report on Form 10-K
For questions or to provide feedback regarding this Sustainability Report or its contents, please contact:
Elaine Heldewier, Director Sustainability Programs
Karina Hilton Spiegel, Manager Sustainability Programs
Maritime Policy & Analysis at Carnival Corporation & plc
3655 N.W. 87th Avenue,
Miami, Florida 33178-2428
Or email us here