A Reputation Rebound

It’s been a rough couple of years for Carnival Cruise Lines, but the tide is turning.

The Fun Ship line announced in a press release on July 17 that it is the most-improved brand in consumer perception — or what is commonly called “buzz” — according to a ranking by BrandIndex.

This is very good news for a company that has worked very hard to restore the brand’s luster as “The Most Popular Cruise Line in the World,” as Carnival calls itself.

Carnival’s problems were most exemplified by the Carnival Triumph debacle in February 2013, when the ship lost power and floated for several days before it was towed into Mobile, Ala. Passengers did without air-conditioning, lights, some toilets and hot food on occasion, and their plight was sensationalized in round-the-clock coverage on CNN.

Add to that a few less publicized incidents with other ships that lost power in the following month, and some began to question whether Carnival ships were safe. All this came a year after the Costa Concordia capsized and, although some didn’t realize the two companies are related under the Carnival Corp. brand, many did.

But Carnival Cruise Lines stepped up, vowing to restore the line’s reputation. First up: a review of its 24 ships and a $300 million program to enhance fire suppression systems and make sure the ships can operate hotel services even when they lose power.

By June, a new travel agent outreach program called Carnival Conversations was launched. Although top sales executives said the program was hatched before the Carnival Triumph situation, it was vital in rebuilding the relationship with travel sellers, many of whom had become disenchanted with the line after several unpopular decisions of the prior year — such as no more print brochures, a restructuring of commission tiers that determines overrides and a perception that the line has eliminated or drastically reduced co-op marketing assistance.

With Carnival Conversations, the company listened to travel agents and made many changes that pleased them. And that was necessary because travel counselors can recommend clients toward or away from a particular brand. Make them mad, and some will vow to stop selling your cruises.

About the same time, Carnival Corp. Chairman and CEO Micky Arison gave up the CEO position to board member Arnold Donald. Arison said he had been mulling the move for a while, since British executives commonly split the chairman and CEO roles.

Some industry observers, however, interpreted it to mean Donald was brought in to reinvigorate the corporation and its 10 brands. Arison was criticized by some for being more interested in his Miami Heat basketball team and not being the front man during the Carnival Triumph incident.

Then followed a series of eye-catching programs and improvements, including a vacation guarantee that gives refunds to unhappy cruisers who leave the ship, a shore excursion price guarantee, a new marine-themed children’s program and partnership with Dr. Seuss, and Carnival LIVE, an onboard concert series with big-name performers.

The company also launched an aggressive $25 million advertising campaign in late 2013 to boost its image before and into Wave Season, the heavy booking season in the first quarter of the year.

New CEO Arnold Donald also is highly visible, making TV appearances and holding conference calls with travel industry journalists.

In January, he said the ad campaign helped increase Carnival’s reputation by 75 percent, making a faster recovery than the two or three years it often takes to restore brands after a negative incident. “That’s very encouraging, and we look to sustain that momentum,” he said at the time.

It looks like Carnival was indeed able to sustain the momentum if the BrandIndex ranking is any indication. That’s due to publicly acknowledging and addressing problems head-on.