Company Overview - Carnival
Carnival Cruise Line, a subsidiary of Carnival Corporation, is known as “The World’s Most Popular Cruise Line®” and carries an average of 5 million passengers annually. Additional details of the brand have been provided below.
- Carnival Cruise Line was founded in 1972 and has grown today to be know as “The World’s Most Popular Cruise Line®”.
- Carnival Cruise Line is owned by Carnival Corporation which carried 12.4 million passengers in 2018.
- Carnival Cruise Line carries roughly 5 million passengers annually.
- Carnival Cruise Line is expected to have 3 additional ships added to their fleet between 2019-2021 with a total added capacity of 14,550 passengers.
- The brand has 26 ships currently in its fleet.
- Carnival Cruise Line generated an estimated annual revenue of $7.6 billion USD in 2018.
- Carnival Cruise Line holds 16.7% of the total luxury cruise market.
- In addition, the brand holds 40.3% of the parent company's revenue.
- The brands parent company, Carnival Corporation, generated an annual revenue of $18.88 billion holding 41.4% of the luxury cruise market in 2018.
- Carnival Corporation's revenue segments are as follows:
- Customers have rated the Carnival Cruise Line brand at 3.5 stars out of 5 on online review sites.
- Customer perceptions have recently been affected by the release of information by the Federal Court stating the Carnival Cruise Line has the highest rate of sexual assault in the industry. These figures, however, do not take into account the number of total passengers on board per year, but rather the average number of passengers on any given day which can vary depending on the season.
- After analyzing a sampling of negative customer reviews on social media and review sites, we found that most customers more commonly perceive the company as "too expensive," to have "hidden fees" or have "bad customer service."
- The most common complaint by customers is related to fees.
- According to Carnival Cruise Line, customers still view the company as the most recognizable cruise brand in the world.
- In 2019, Forbes named Carnival Cruise Line among the top employers in the cruise line industry and leisure industry.
- Forbes also recognized the company as ranking in the top rated travel and leisure companies in line with hotels, resorts, travel agencies, and other entertainment groups.
- Factors such as engine malfunctions and engine emissions are downfalls to how the company is perceived in the market, however, experts and media coverage show that these factors are expected on some occasions. Experts say that while Carnival had a rather harsh confluence of events in early 2019, industry perception remains minimally altered.
- Company personnel told industry journalists that they plan to offset negative perceptions in the market with increased focus on positive ad campaigns such as the new 2019 trade campaign featuring travel agents as "Fun facilitators."
According the Crunchbase and Carnival Corporation, Carnival Cruise Line is a private subsidiary of Carnival Corporation and does not file financial data segmented to the brand. We were, however, able to find the number of passengers carried on Carnival Cruise Line and Carnival Corporation. Because passenger tickets generated the majority of Carnival Corporation's revenue in 2018, we used the number of passengers carried to calculate the percentage of the company held by Carnival Cruise Line with the following calculations:
- Brand passengers/parent company passengers=percentage of company held.
- 5 million/12.4 million=0.403 or 40.3%
- Parent company revenue*percentage of company held= brand revenue.
- 18.88 billion*.403=7.6 million
The total luxury cruise market size globally was valued at $45.6 billion in 2018. Using this figure, we calculated the market share of carnival using the following calculations: