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.
SERVICES AND OPERATING STRUCTURE
With operations in North America, Europe, Australia and Asia, Carnival Corporation’s portfolio of brands features Carnival Cruise Line, Holland America Line, Princess Cruises, Seabourn, P&O Cruises (Australia), P&O Cruises (UK), Cunard, AIDA Cruises and Costa Cruises, as well as Fathom, the corporation’s immersion and enrichment experience brand. Each of our cruise 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 2017, 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 ship Adonia.
- 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 2017 Annual Report to Shareholders and in our Annual Report on Form 10-K, which are available on the Carnival Corporation & plc website: www.CarnivalCorp.com
SCALE OF ORGANIZATION
We employ approximately 120,000 employees worldwide. As of November 30, 2017, we operated 103 cruise ships, with a total passenger capacity (based on double occupancy) of 231,570 guests.
2017 marked another very strong year for us as we delivered record cash from operations of over $5.3 billion and record revenues of $17.5 billion.
Key information for 2017 compared to the prior year (Additional financial data and details can be found in the 2017 Annual Report on Form 10-K):
- Revenues increased $1.1 billion to $17.5 billion from $16.4 billion in 2016.
- Gross revenue yields (revenue per available lower berth day or ALBD) increased 3.9%.
- Gross cruise costs including fuel per ALBD increased 7.2%.
We continue to grow our presence in established markets and increase our penetration in developing markets. 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 on our Fathom brand. In 2017, two additional brands obtained approval and are now operating cruises to Cuba, our contemporary Carnival Cruise Line sailing from Tampa, Florida and our premium Holland America Line brand sailing from Fort Lauderdale, Florida.
We believe that our most significant long-term growth opportunity in Asia is 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.
We are building new, innovative, purpose-built ships that are 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 FY2017, we added two new ships, removed one ship from the fleet and reassigned one ship within our brands:
- AIDAperla was added to AIDA Cruises.
- Majestic Princess was added to Princess Cruises.
- Dawn Princess was reassigned to P&O Cruises (Australia) and renamed Pacific Explorer.
- Pacific Pearl was sold.
As of February 2018, we have a total of 20 cruise ships scheduled to be delivered between 2018 and 2023. We continue to make substantial investments in our existing ship enhancement programs to improve our onboard product offerings and enrich our guests’ vacation experiences.
Reflecting on 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 nine 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. We took delivery of AIDAperla in 2017, our second cruise ship to be powered in port by environmentally friendly LNG, along with the keel laying of AIDAnova, the first of nine all-LNG ships on order.
FY2017 Business Dimensions & Direct Economic Value Generated and Distributed1
Number of Guests
Number of Ships
Approximate number of Employees Worldwide
Payroll and related
Interest expense, net of capitalized interest
Cash From Operations
Debt to Capital
1 As of November 30, 2017 Annual Report on Form 10-K
2 Capacity is based on two guests per cabin
3 Additional financial data can be found in the 2017 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
Significant Organizational Dynamics
Stein Kruse, Group Chief Executive Officer (CEO) of Holland America Group
In July 2017, Stein Kruse was promoted to Group Chief Executive Officer (CEO) of Holland America Group and Carnival UK. Kruse works closely with Michael Thamm, Group CEO Costa Group and Carnival Asia, to build on the collaborations with Carnival Europe and Asia Technology and Carnival Maritime Nautical to support the ships of AIDA Cruises, Costa Cruises, Costa Asia, Cunard and P&O Cruises and to identify other collaborative opportunities. Kruse became CEO of the Holland America Group in December 2013. In that capacity, he had full operating responsibility of Holland America Line, Princess Cruises, Seabourn and Holland America Princess Alaska Tours. He was president and chief executive officer of Holland America Line from 2004 to November 2013.
Josh Weinstein, President of Carnival UK
In July, 2017 Josh Weinstein was promoted to President of Carnival UK. Weinstein is responsible for overseeing both P&O Cruises and Cunard, and reports to Stein Kruse. The Southampton-based Carnival UK executive team reports to Weinstein. Weinstein served as treasurer for Carnival Corporation from 2007 to 2017 following five years as an attorney in the corporate legal department.
DARRELL CAMPBELL, CARNIVAL CORPORATION & PLC, TREASURER
In April 2017, Darrell Campbell joined Carnival Corporation & plc as treasurer. Campbell’s responsibilities include overseeing global treasury operations, risk management, tax compliance and tax strategy. During his career he has supervised multinational teams, provided regulatory reporting advice for capital market transactions and periodic filings, and co-authored guidance on industry topics including compliance, accounting and financial reporting. He is a licensed CPA in Florida and New Hampshire.
Mario Zanetti, President of Costa Group Asia
In August, 2017 Mario Zanetti was promoted to president of Costa Group Asia. He is responsible for expanding Carnival Corporation’s leading presence in Asia, covering China, Hong Kong, Taiwan, Japan and Korea. A veteran in the cruise sector with over 20 years of industry experience, Zanetti began his career in the late 1990s when he joined Costa Cruises. Over the last two decades, he has held various key positions, most recently President of Carnival China.
Jason Glenn Cahilly, Member of the Board of Directors of Carnival Corporation & plc
In July 2017, Jason Glenn Cahilly was appointed to the Boards of Directors of Carnival Corporation & plc. Cahilly is the Founder and Chief Executive Officer of Dragon Group LLC, a private investment firm which concurrently provides business management consulting and advisory services. Cahilly previously served as Chief Strategic and Financial Officer of the National Basketball Association from 2013 to June 2017, as well as a Director of the Board of NBA China. Prior to that, Cahilly spent 12 years at Goldman Sachs & Co., where he served as a partner and the global co-head of media and telecommunications. He is also a Non-Executive Director of Corsair Components, a leading supplier of high-performance PC systems.
There were no other significant changes during the reporting period regarding the size, structure, or ownership of Carnival Corporation & plc.