Micky Arison Recounts History in the Industry \u201Cfrom the Ground up\u201D and Forecasts a Future of Success

Micky Arison Recounts History in the Industry “from the Ground up” and Forecasts a Future of Success

By Micky Arison, Chairman, Carnival Corporation & plc and Florida-Caribbean Cruise Association (FCCA)

It was not too long ago, or at least it

does not seem like that much time has passed, when in 1972 I decided to join Carnival Cruise Line’s sales team to learn the business from the ground up. At the time, the cruise industry was just getting started, with only a few ships and pioneers leading the industry and its couple hundred thousand passengers with limited destinations and options.

Time and positions indeed flew by, from getting a vantage point of our guests and products through my first sales position and subsequent promotion to reservations manager in 1974, to further concentrating on operations after being named vice president of passenger traffic in 1976, implementing initiatives including pricing plans and packages to make cruising more inclusive and attractive for younger and first-time cruisers – part of why even now cruising’s unique vacation experience is offered at such a great value, even better than land-based vacations.

Things moved even faster after being appointed as president in 1979, when the contemporary cruise industry began to evolve after Carnival Cruise Line launched

“I HAVE ALWAYS BELIEVED IN MAKING EVERY PLACE WE TOUCH BETTER.”

the world’s largest purpose-built cruise ship that same year, and then added three more vessels in the mid-1980s that were groundbreaking at the time, with a focus on offering guests distinct and innovative onboard vacation environments, such as streetcars serving as dining cafés, along with different nightly shows, bands and orchestras, multiple

pools and shopping options, full casino, discotheque and more to make these “Fun Ships” while sailing three-, four- and seven-day cruises to the Bahamas, Caribbean and Mexican Riviera.

Fast-forward to today. Carnival Corporation sails to more than 700 ports

around the world with more than 100 ships and nine cruise line brands, including some of the most-recognized brands in North America, the United Kingdom, Germany, Italy, and Australia, while featuring a broad product selection geared to suit every conceivable taste, price preference and target market—including contemporary, premium and ultra-luxury—and catering to the desires of different cultures, offering multiple languages and countless entertainment, dining and vacation preferences.

Overall, the cruise industry has more than 270 ships visiting nearly 1,000 ports, with 30 million people projected to cruise this year. The industry makes a remarkably positive impact on communities around the globe by sustaining over 1.1 million jobs with $45.6 billion in wages and salaries and $134 billion total output worldwide in 2017.

Those numbers are significant to me because I have always believed in making every place we touch better. This happens through economic benefits, especially in places the some of the Caribbean islands where cruise tourism provides the over-

whelming majority of their GDP and every cruise call truly makes a positive impact. But as critical as economic benefits are, all of us in the industry also share the common objective to protect and maintain the environment, as well as generally improve people’s lives.

I could not be prouder that the industry also continues to show its care for the human element, as was abundantly clear following our united efforts after the Caribbean’s historic hurricane season in 2017, and that its evolution has led the way in numerous environmental initiatives, from pioneering technologies like advanced air quality systems and low-emission Liquefied Natural Gas (LNG) to sustainable sourcing, elimination of single-use plastics, restoration of coral reefs, and other policies and practices that regularly exceed standards while fostering a safe, secure, healthy and sustainable cruise ship environment.

Yet the numbers do carry some extra weight for me personally because entering new markets and having global brands is what I envisioned as Carnival Corporation’s growth strategy in the 1990s.

As a testament to the global environment that cruising has become, more than 11 million cruise guests, and 41 percent of the 26.7 million global ocean cruise passengers, hailed from outside of the US in 2017. That includes 2.4 million from China, up more than 14 percent compared to 2016.

That also shows how much opportunity exists, as the industry still only represents about 2 percent of travel, and every market in the world is underpenetrated. For instance, those 2.4 million cruise guests from China only reflected 1.9 percent of China’s 2017 outbound tourism market. Additionally, North America continues to grow alongside the industry, with cruisers from Canada increasing 15 percent and United States-sourced guests rising nearly 4 percent from 2016-2017. Aided by a strong economy, a consumer shift from material goods to experiences, and cruising becoming a mainstream option, there are no signs of slowing.

Understandably, this is part of the reason cruise lines are bullish when planning 10 years out and why the order book finds its pages filled with 72 vessels on order between 2019-2027 from FCCA Member

Lines as of February 1, adding more than 240,000 lower berths and representing an investment of $57.6 billion.

They also reflect another key factor driving the industry: differentiation. That is clear by everything ranging from

Now I did not want to share all of this just to sing the praises of Carnival

the various sizes and categories of ships to ever-evolving onboard offerings that include exciting experiences like rollercoasters to celebrity chefs, award-winning entertainment and ultimate pampering through multi-level spas and all-suite staterooms. While much of the book features vessels large in both features and capacity, with 16 vessels to sail with 5,000 or more guests, it also shows the growth of sectors like luxury and expedition, with 14 ultra-luxury and expedition ships on order. It also underscores the industry’s initiatives for sustainability, with 23 of the newbuilds having LNG capability.