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, Mardi Gras, a converted ocean liner. The success of 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.
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.
SERVICES AND OPERATING STRUCTURE
With operations in North America, Australia, Europe 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. 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 2018, 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 and P&O Cruises (UK).
- Costa Group, which operates AIDA Cruises and Costa Cruises.
- Holland America Group, which operates Holland America Line, P&O Cruises (Australia), Princess Cruises
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 2018 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, 2018, we operated 104 cruise ships, with a total passenger capacity (based on double occupancy) of 236,910 guests.
2018 marked another very strong year for us as we delivered record cash from operations of over $5.5 billion and record revenues of $18.9 billion.
Key information for 2018 compared to the prior year (additional financial data and details can be found in the 2018 Annual Report on Form 10-K):
- Revenues increased $1.4 billion to $18.9 billion from $17.5 billion in 2017.
- Gross revenue yields (revenue per available lower berth day or ALBD) increased 5.7%.
- Gross cruise costs including fuel per ALBD increased 3.9%.
We continue to grow our presence in established markets and increase our penetration in developing markets.
In 2018, Carnival Corporation signed a significant partnership with Dubai-based holding company Meraas, whose aim is to develop the Dubai Cruise Terminal into a major maritime tourism hub.
In 2018, Carnival Corporation launched a cruise joint venture in China. Carnival’s and the China State Shipbuilding Corporation’s joint venture is named Carnival Cruise Shipping Limited.
In 2018, we opened the Helix cruise center at the Port of Barcelona, Spain. A new 12,500 square meter state-of-the-art terminal. The Helix terminal and the company’s existing terminal at the port represent Carnival Corporation’s largest combined 46 million euros port investment in Europe.
We opened a new cruise terminal in Long Beach, California utilizing a historic buidling that once housed the famous “Spruce Goose” airplane. The restoration preserves an important part of California’s history and a landmark on the city’s waterfront.
We are building new, innovative, purpose-built ships that are more fuel efficient, have a greater number of balcony cabins 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 2018, we added four new ships, and removed two ships from the fleet:
- AIDAnova was added to AIDA Cruises (ship operations commenced in December 2018).
- Carnival Horizon was added to Carnival Cruise Line.
- Nieuw Statendam was added to Holland America Line.
- Seabourn Ovation was added to Seabourn.
- Adonia and Costa Neoclassica were sold from P&O Cruises (UK) and Costa Cruises respectively.
As of November 2018, we have a total of 21 cruise ships scheduled to be delivered between 2019 and 2025.
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 made history with the first ever cruise ships to use LNG, and in 2018 we took delivery of the first cruise ship able to be completely powered by LNG, our AIDAnova. We have an additional ten next-generation cruise ships on order that will also be powered by LNG (both in port and on the open sea) – an innovation that reduces carbon emissions to help protect the environment.
AWARDS & RECOGNITION
We are honored by the recognition we receive as a corporation as well as the recognition our individual cruise brands receive for their collective commitment to protecting and sustaining healthy oceans, seas and communities around the world. The independent accolades come from environmental groups, port communities, industry publications and associations that have recognized our long-standing commitment to being one of the cruise industry’s leaders in environmental innovation and best practices.
Following are noteworthy recognitions received in 2018:
- 100 Best Corporate Citizens 2018 – Corporate Responsibility Magazine – Carnival Corporation
The 100 Best Corporate Citizens list recognizes outstanding environmental, social and governance (ESG) performance of public companies across the United States, documenting 260 ESG data points of disclosure and performance measures — harvested from publicly available information in seven categories: environment, climate change, employee relations, human rights, governance, finance, and philanthropy and community support. 2018 marked the third consecutive year and sixth time in the past eight years that Carnival Corporation was recognized, ranking 11th in the environmental category in 2018.
- British Travel & Hospitality Sustainable Business Award – Carnival Corporation
The British Travel and Hospitality Hall of Fame recognizes the highest achievers in the travel, hospitality, tourism and leisure sectors. Carnival received the 2018 sustainable business award for positively impacting their stakeholders, employees, consumers and financials.
- FTSE4Good Index
Since 2006, Carnival Corporation has been a member of the FTSE4Good Index, the socially responsible investment index calculated by global index provider FTSE Group. The FTSE4Good Index measures the performance of companies that meet globally recognized corporate responsibility standards and facilitates investment in those companies.
- Most Eco-Friendly Line – Porthole Cruise Magazine Readers’ Choice Awards – Holland America Line
Readers in 2018, as well as previous years, recognized the line’s commitment to safeguarding the oceans and the environment, its use of shore power, and responsible management of energy, water and waste.
- Green Controlling Award 2018 – Péter Horváth Foundation – AIDA Cruises “Green Cruising” project
The award, presented in cooperation with the International Controlling Association, recognizes the most innovative and effective “green” goals for design and control of ecological strategies, programs, projects and procedures in corporations and public institutions. AIDA’s Green Cruising project includes both ecologic and economic goals at every stage of planning.
- Seatrade Award for Corporate Social Responsibility – Costa 4GOODFOOD Program
The award, presented in 2018, recognizes companies delivering innovative corporate social responsibility initiatives that successfully contributed to the welfare of the company’s employees, its local community and its business performance overall. With its 4GOODFOOD program, which considers every aspect of food preparation and consumption onboard, Costa Cruises aims to cut in half the food waste onboard its ships by 2020, which is 10 years ahead of the United Nations 2030 Agenda Sustainable Development Goals.
- Human Rights Campaign’s Corporate Equality Index
Buiding a diverse and inclusive workforce continues to be a priority. We earned a perfect score for the second consecutive year from the Human Rights Campain’s Corporate Equality Index, the leading LGBTQ civil rights organization in the U.S.
- Forbes – America’s Best Large Employers
We were honored by Forbes as one of America’s best employers for diversity based on our commitment to diversity and inclusion, and were also named on the Forbes list of America’s Best Large Employers overall.
FY2018 Business Dimensions & Direct Economic Value Generated and Distributed1
Number of Guests
Number of Ships3
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, 2018 Annual Report on Form 10-K
2 Capacity is based on two guests per cabin
3 Does not include AIDAnova as ship operations commenced in December 2018
4 Additional financial data can be found in the 2018 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
Alana Enge, Manager Sustainability Programs
Maritime Policy & Analysis at Carnival Corporation & plc
3655 N.W. 87th Avenue,
Miami, Florida 33178-2428
Or email us here