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.”

