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Carnival
NUMBER ONE
(continued)
The Keys to Success

There were several entrepreneurs providing cruises on retired ocean liners out of Miami in the early 1970s.  So, how
did one of them metamorphose into a corporate giant producing $11.5 billion in revenue in 2006?
 Captain Gianpaolo Casula, master of the CARNIVAL VICTORY, joined Carnival Cruise Lines in 1976 shortly after
the line began and has witnessed first hand its phenomenal growth.  He told The Log that when Carnival began
operations, "cruising was pretty much limited to the upper class and so it was a little bit restricted.  Ted Arison gave the
chance for everybody to cruise.  That's how they succeeded.  Prices went down."  Or, as Carnival's corporate history
puts it, Arison "set out to realize his vision of making a vacation experience once reserved for the very rich accessible to
the average person."
         In addition, while Costa, Cunard, Holland America and the other established lines offered a very staid approach
to cruising in which the passengers were pretty much left to entertain themselves, Captain Casula pointed out, Carnival
"offered a different way [to cruise].  For the guests, there was a lot of fun, they could enjoy being aboard with activities."
        Indeed, "fun" became the watchword of the company.  One of the people brought in to work on marketing the line
was Bob Dickinson who is credited with developing the line's slogan: "The Fun Ships."  Dickinson has written: "What is
the universal need - - the one ingredient everyone wants in their vacation?  FUN!  And, fortunately, the product at the
time backed up the slogan. . . . With the 'Fun Ship' position, the ship itself became the destination and the ports of call
became green stamps - - a total reversal of previous cruise marketing.  Cruise marketing had been destination driven.  
But in the early 1970s, less than one percent of the public had been on a cruise; the vast majority of the population was
leery of this unknown concept.  By focusing on the ship rather than the ports of call, Carnival was forced to communicate
to the public what the experience of the ship and cruising was all about."  (Bob Dickinson, Andy Vladimir, Selling the
Sea, 2d ed 2007).
         Unlike many of the early Miami cruise operators who limited their marketing to southern Florida, Arison had
pioneered nationwide marketing in his days with NCL.  Building upon this, Carnival became the first line to advertise on
network television with a campaign that brought the Fun Ship slogan into millions of American homes.
         Captain Cupisti also noted that: “In the beginning, one of the other strategies that was adopted was boosting the
travel agency network and that gave us the edge over everybody else.  We have a loyal travel agency network.  We
keep rewarding these people.  We are proud to have these people working with us and they are loyal to us.  They keep
the Carnival and the Carnival Corporation as the first choice to the regular passenger”.
        Indeed, the story is told that Carnival hired people to go into travel agencies posing as people planning their next
vacation.  If the travel agent suggested a cruise vacation, the Carnival employee would give them ten dollars.  If the travel
agent suggested a Carnival cruise, Carnival paid them $1,000.
         Another key factor in Carnival's success was the designs of the ship.  Captain Casula, who has commanded most
of the Carnival ships over the years, noted "we have always had as our architect [Joseph] Farcus and he did a fantastic
job.  We consider him like a genius."  The interior designs were not like the traditional ocean liners.  Sometimes they
were whimsical, sometimes shock and awe Las Vegas-style, always they were sought to engender a fun experience.
         Farcus has explained that his designs tell a "story."  The design process begins with "an intellectual idea for me to
build artistic creations around [which] all of the public rooms on board the ship follow. To me, there is a coherence in the
design that varies in how that is interpreted from room-to-room.   It will really enhance your cruise by making this a
discovery process.  My hope is that the environment itself will engender this type of exploration."
         Yet another ingredient in the success formula is hospitality, a factor Captain Casula credits as helping Carnival
compete against lines that offer more luxurious cruise experiences.  "It is like if you travel around the world, sometimes
you go to a very sophisticated hotel, beautiful, but the hospitality is not what you want and so you [no longer] care about
how sophisticated the hotel is.  Then you go to another one, nice and simple, you get treated like royalty and so you
would prefer to go there.   For us, in my personal opinion, the way you have been treated is very important.  Saying
hello, talking, greeting, try to remember the name of the guest.  It gives you a good feeling."
         According to Captain Casula, Carnival Cruise Line has continued to succeed over the years by remaining focused
on its core market and the principles that allowed it to succeed with that market in the first place. "Carnival has stayed,
more or less, on a level for a specific class of guests.  From the beginning up until now, the only difference is that the
ships became more sophisticated in equipment, offering more fancy things on board."

The New York Ships

Carnival Cruise Line operated two ships out of New York during 2007.  The CARNIVAL VICTORY focused on
providing short cruises to Halifax and St. John's in Canada while the CARNIVAL MIRACLE provided eight-day
cruises to the Caribbean.
         The VICTORY is 101,509 tons and is built by Fincantieri on a post-Panamax hull that is 893 feet long and 116
feet at the beam.  She is the last of three Destiny-class cruise ships, entering service in 2000.  With 13 passenger decks,
she towers above the water, which creates spectacular views from her upper decks but which also presents a large face
to the wind.  However, Captain Casula indicated that coping with this issue is just a matter of getting to know your ship.
"Every ship has a different side and presents a different face to the wind.  In the maneuver, you have to take this into
consideration."     
         Six diesel engines power the ship, generating enough electricity to supply a city with a population of 30,000.  The
electric motors turn two shafts that rotate the variable pitch propellers in opposite directions.  They also power three
bow thrusters and three stern thrusters.
         The thrusters and the ship's two independent rudders give it tremendous maneuverability.  "They make it more
easy for us to dock and also to be independent.  If the wind is not over 25 knots, I dock. If the wind is over 25 knots, I
have to ask the assistance of tug boats."
         VICTORY was "built for cruising" and so has a maximum draft of 27 feet.  "In those small islands, we need ships
with not too much draft."  "Of course, when we are in bad weather, we don't handle like the ships of [the ocean liner
period] like NORWAY [formerly FRANCE], MICHELANGELO, or RAPHAEL. Those [were a] different shape,
more aerodynamic, just built to do the crossing.  We are safe [but] you can feel more the impact when you hit a wave."  
Accordingly, as the more wintry weather approached in October, VICTORY went south to homeport in Miami until
next Spring.
         Entering service in 2004, CARNIVAL MIRACLE is smaller than VICTORY at 88,500 tons.  Her longer (963
feet) and narrower (106 feet) hull gives her a sleeker shape and a more ocean liner-like block co-efficient than her
running-mate.  “The hull of the ship is much better for crossing the ocean.  For example, if you are going on [the
VICTORY] class of ship, the shape of the bow is much larger.  It has a tendency to bounce in the water.  It can be
annoying for somebody who is not used to [the sea].  Whereas this one is more like a liner.  It cuts through the waves.  It
is much more comfortable for everyone.” Captain Cupisti commented.
         In fact, she is similar in design to Holland America's NOORDAM, which operates out of New York in the winter.
(See The Log, Spring 2006 at p.9).  Nonetheless, she too heads south when winter comes albeit somewhat later than
VICTORY. “We are here for the summer for obvious reasons.  Due to the weather in the Atlantic during the winter, it is
bound to create problems with the ship and the passengers.  For the first two days going and the last two days coming, it
is going to be really rough.”
         Because of her smaller size, MIRACLE carries fewer passengers.  Her passenger capacity is listed as 2,100
versus VICTORY's 2,758.  (Keep in mind that the industry usually lists passenger capacity in terms of lower berth
capacity.  When VICTORY's upper berths are considered, she can carry 3,540 people).
         Built by Kvaerner-Masa in Finland, MIRACLE's maximum speed is approximately 22 knots.  However, she has
an azipod propulsion system rather than propeller shafts and rudders.  On a ship with pods, electricity is sent from the
ship's power plant to electric motors housed in casings hung below the hull referred to as pods.  The motors then turn
fixed blade propellers that are mounted on the front of the pod, which pull, rather than push, the ship through the water.  
Azipods can turn 360 degrees and enable the ship to turn at speed by turning the pods.  As a result, there is no need for
a rudder.  Since they are located near the stern, they can also be turned to perform the function performed by stern
thrusters.  Not only are pods useful for maneuvering but they afford more space in the hull because the motors are
outside the hull and because there is no need to have stern thrusters.  Also, because there are no propeller shafts, there is
less vibration.      

Life Onboard

As Captain Casula pointed out, one of the key factors in Carnival's success has been affordable fares.  Consequently,
on board a Carnival ship one sees a broader cross-section of the middle class in terms of occupations and ethnicity than
on some of the higher-priced lines.  In addition, the lower fares are conducive to travel by families, family reunions and
by various groups and organizations.  
         Thirty percent of the line's passengers are under age 35, 40 percent are between 35-55, and 30 percent are over
55.  However, the age mix of the passengers, Captain Casula explained, "depends upon the season [and] upon the type
of cruise.   If we go to Alaska, most of the guests are mature adults.  On the cruise to Canada from New York, we have
a lot of families.  In the Caribbean, in the summer, we have a lot of students, not teenagers, young 19, 20, 25.  During
the Spring Break, we have a lot of teenagers.  In winter, we have a lot of adults."   
         In addition, Captain Cupisti pointed out that the length of the cruise affects the demographics.  For a  seven-day
cruise, “you need only one week vacation.  On an eight-day cruise, if you are leaving on Tuesday, and you are arriving
the next Wednesday, you need two weeks vacation to go.  So, that changes the demographic of our ship.  [As a result]
our ship is more cosmopolitan.”
         Although the fares are reasonable, the cruises are not "cut-rate" in terms of quality.  The ships have state-of-the art
nautical technology and feature the modern amenities such as spas, fitness centers, pools, casinos, theaters, bars and
lounges that one would expect to find on a cruise ship.  Carnival has long been known for having staterooms that were
larger than the industry average.  The rooms have the "Carnival Comfort Bed Sleep System" which includes plush
comfortable mattresses, duvets and high quality sheets and pillows and which are quite comfortable.  The line also
provides amenities baskets with sample-size, brand-name products such as razors, toothpaste and even romance
novels.   While not the type of luxury one would have found in the Plaza Hotel or would find today in the London Ritz,
the rooms are comfortable and are similar to what one would expect from a good quality modern hotel chain.
         A modern hotel also describes the décor of the public rooms in CARNIVAL VICTORY.  With this ship,
architect Farcus took the sea as his central creative idea.  Accordingly, the ship's multi-story central atrium is done in soft
blues and greens.  Although the colors vary, this type of restraint continues throughout the ship.  There is little shock and
awe in the VICTORY.
         CARNIVAL MIRACLE is much more whimsical.  The public rooms are designed around a theme of “Famous
Fictional Characters.”  The theater is named after the Phantom of the Opera, a pool after Homer's Ulysses, and there is
Mr. Lucky's Casino and Nick and Nora's Restaurant, for example.  The colors are bolder, oversized painting of sea
nymphs and large panels with drawings of Robin Hood, Lord Jim, Hercule Poirot and other fictional characters adorn
the walls.  Huge  figures of sea gods, Frankenstein and the Mad Hatter appear in various rooms   As Carnival puts it:
“Stepping aboard CARNIVAL MIRACLE is like entering a theme park.”
          As the television advertisements make clear, the object of a Carnival cruise is to have fun.  This is light hearted-
fun, not intellectual enrichment.  There are trivia games, bean bag toss championships, and even hairy chest
competitions.   However, most of the passengers opt for relaxing, wining and dining in a nice setting.  For many, this
involves sun bathing by the pools, eating at the large buffets, and spending the night in the casino.  However, for others,
there is afternoon tea in one of the dining rooms with a classical music trio and listening to a jazz ensemble in the
sophisticated atmosphere of the cigar lounge.  Along the same lines, the entertainment options range from full-scale Las
Vegas style productions shows in the theater to a singer accompanying himself on an acoustic guitar in one of the bars.  
In other words, Carnival recognizes that people have fun in different ways.
        In recognition of the fact that the public is growing more demanding in its dining habits, Carnival brought in French
master chef Georges Blanc to oversee the line's cuisine. However, this is a mass-production operation - - the
VICTORY's dining rooms serve 1,500 main courses in less than 25 minutes - - and thus one cannot expect gourmet
cooking.  Accordingly, some of the Carnival ships, including CARNIVAL MIRACLE, have separate specialty
restaurants where passengers can indulge their gourmet cravings for an extra charge.

Going Forward

Carnival is by no means resting upon its laurels.  Deploying two ships to New York is part of a larger strategy of
stationing ships around the country.  “We have the most number of homeports all around America.  So, we can serve
people without having them fly to the ship.  We bring the ship to them.”  Captain Cupisti explained.
         The strategy is working.  The ships sail fully occupied but as MIRACLE’s Hotel Director Pierre Camilleri noted,
“only 30 percent of our guests fly in to join the cruise.  Most of them are drive-in.”
         But, Carnival’s horizons are not limited to America.  The European economy is expanding and the conditions
there are similar to those Carnival found so fertile in the 1970s in America.  There, “the old conception of a cruise was
that it was only for royalty.  Now, they understand that the cruise is not just for royalty but it is for everybody.  So, there
is this booming of the market there.”  Accordingly, Carnival ships have been deployed to Europe including its latest ship
CARNIVAL FREEDOM.
         To handle the worldwide demand, Carnival is building more and bigger ships.  Two 130,000 ton giants,
CARNIVAL DREAM and CARNIVAL MAGIC are on order.
         The growth of the cruise industry has also sparked a wave of construction in places that are or would like to be
destination ports.  In the Caribbean, islands are constructing piers and upgrading their infrastructures to accommodate
the cruise ships.  “Carnival expansion is very welcomed by the islands because we bring ships, we bring money, we bring
work - - not only around the tourists but work on the piers and with the shops.  So, it is all well around.  They give us
the space, the weather, we give them the ability to live very comfortably and to move up.”  Captain Cupisti commented.
         The company is also continuing to develop its onboard experience.  To do this, it is refurbishing older ships and
adding new amenities and programs to its ships.  As Captain Cupisti explained:“Following the evolution of the market,
we are going towards the full experience onboard.  [We do] not conceive of a ship like a closed space but as an in-all
vacation package.  So, in other words, you come on the ship and you should find everything.”
CARNIVAL
VICTORY
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