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Carnival CEO Cahill Says Prices are Stabilizing
Published on: October 9, 2009
The CruiseOne/Cruises Inc. conference, being held this week on Carnival Dream, heard an optimistic message from Carnival Cruise Lines President and CEO Gerry Cahill on Oct. 8. He spoke to the gathering taking place aboard the Carnival Pride. Cahill said this year he’s seen the most pressure on cruise fares than he’s seen in 15 years, with most lines reporting 15 to 20 percent declines. “But the good news is that I do think we’re finding pricing stability,” he said. “I think we found the bottom.” Still, he predicted that full recovery will be a slow process, due to continued unemployment and housing problems. “I do not believe we’ll have a one-year recovery,” Cahill said. “We will not recover in 2010 what we lost in 2009. It will probably take a few years.”
Cahill delighted the agents by wearing a T-shirt and shorts to match the casual attire they were instructed to wear for an afternoon beach party. Yet he answered some pointed questions from the audience. One agent told Cahill that NCFs were reducing commissions, especially when fares are down as they have been this year. “NCFs effectively went down this year when we removed the fuel supplements,” Cahill responded. “NCFs are pretty well fixed. If we all bring pricing back up, the NCFs will remain fixed.”
Another agent said he was “dismayed” that Carnival gave top Pinnacle Club stature to YTB, which some consider a pyramid scheme. Lynn Torrent, senior vice president of sales, responded to that query. “We don’t believe it’s our role to evaluate the business model of each distribution model,” she said. “We look at the performance of the partners.”
Cahill also took the chance to promote some unique features of the 130,000-ton Carnival Dream, due out next month. There will be 100 cabins that have two bathrooms and can sleep four or five people with upper berths. The Dream will also boast a new Ocean Plaza food and entertainment area as wide as the ship. The Lanai, on Deck 5, will feature four hot tubs that hang over the side of the ship from a promenade. The new Cove Balcony cabins on Deck 2 will feature balconies in-set in the hull, so they are less expensive than higher-up veranda accommodations. The adults-only Serenity area will take up two decks instead of one.
Cahill said that while Carnival operates a direct-to-consumer operation, travel agents are of vital importance to the Fun Ship line. “The distribution channel is not going to go away,” he said. “We need you. We don’t have the reach you do.” For more information, visit www.bookccl.com , www.CruiseOneFranchise.com or www.SellCruises.com.
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