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Carnival Corporation - The impact of COVID-19: Case Study


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.

  • 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


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