Summary
Recent months have been unprecedented for cruise liners. Travel restrictions, sailing suspensions, falling consumer confidence and a slew of negative press are just some of the issues cruise operators are having to contend with. As the industry’s largest player, Carnival is severely impacted.
Key Highlights
Scope
Reasons to Buy
Recent months have been unprecedented for cruise liners. Travel restrictions, sailing suspensions, falling consumer confidence and a slew of negative press are just some of the issues cruise operators are having to contend with. As the industry’s largest player, Carnival is severely impacted.
Key Highlights
- Carnival has suspended operations throughout the summer months, usually a very busy time for cruise operators. This reduction in bookings has resulted in a revenue plummet, a drop in consumer confidence and knock on impacts to the jobs sector and onto cruise-dependent countries such as in the Caribbean.
- Carnival will suffer from the negative media impact that COVID-19 has created, regarding the cruise industry as a whole and also to Carnival’s brands.
- Carnival stocks and shares have plummeted in price by almost 80%, and the financial impact that Carnival will experience will be prolonged for many years.
- Carnival has extended its cancellation policy to adapt to impacted travelers on suspended sailings. Customers are encouraged to accept Future Cruise Credit (FCC) to rebook a sailing for later on in 2020 or 2021, rather than a cash refund.
- Carnival has raised over $6 billion (USD) in liquidity via multiple methods in order to offset the financial impact that COVID-19 will have.
Scope
- This case study looks at how the COVID-19 pandemic is impacting Carnival and assesses the company's response.
Reasons to Buy
- Gain an overview of the current global COVID-19 situation
- Understand the impact that COVID-19 is having on the cruise industry
- Assess the impact on Carnival and its subsidiaries
- Understand what the future may hold for Carnival
Table of Contents
Current COVID-19 Overview- Carnival Overview
- Impacts on Carnival
- Carnival’s Response
- Carnival post-COVID-19
Appendix
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Carnival Corp
- Royal Caribbean
- Norwegian Cruise Line
