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» Cruise Talk   » Cruise Ships   » Question from a novice, why couldn't Carnival Corp...

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Author Topic: Question from a novice, why couldn't Carnival Corp...
dmwnc1
Cruise Director
Member # 3785

posted 09-29-2011 08:32 AM      Profile for dmwnc1   Email dmwnc1   Send New Private Message      Edit/Delete Post  Reply With Quote 
I know this is going to sound pretty stupid to some of you, but Carnival Cruise Lines has pretty much stretched the Destiny-to-Dream Class design about as far as it can go. Why couldn't they then in turn go smaller on a few ships, and in 2014 or 2015 replace some of the aging Fantasy-Class ships with a modified-for-CCL Sphinx class cruise ship used in AIDA Cruises? I know that CCL has spent a bit of money refitting some of the Fantasy-class with balconies, but still it would be nice to see something new for them sporting a newly designed whale tail.
Posts: 5650 | From: Clarksburg WV | Registered: Apr 2003  |  IP: Logged
Linerrich
First Class Passenger
Member # 4864

posted 09-29-2011 08:57 AM      Profile for Linerrich   Email Linerrich   Send New Private Message      Edit/Delete Post  Reply With Quote 
The short answer is "corporate greed." These ships within the Carnival brand have been money-makers for decades, and the the company is basically squeezing blood out of a stone. They continue to tweak the existing hardware, in order to save on operational costs. "If it's not broke, don't fix it."

It costs a lot for a line to invest in a new design, which is what Royal Caribbean has successfully done in recent years. Even though this has cut their profits, their philosophy is that, in the long run, it will pay off.

Eventually, of course, Carnival will have to establish new designs, but don't look for small vessels within the CCL brand--that's not what they are about. They have other brands for people wanting smaller ships.

Rich


Posts: 4210 | From: Miami, FL | Registered: Jul 2004  |  IP: Logged
buddhaJoe
First Class Passenger
Member # 4356

posted 09-29-2011 09:18 AM      Profile for buddhaJoe   Email buddhaJoe   Send New Private Message      Edit/Delete Post  Reply With Quote 
hi there

i'm not considering you as a novice
but here we go then

i also do not agree with Rich to some content
to put it black/white as Carnival Corp / Royal Caribbean
they are both in it for the money, their only
difference is their approach...
(Carnival with a lot of brands, RCI more compact
innovative etc)

but here is your answer from an insider
head of MSC cruises just had this interview
days ago... (source Seatrade Insider)

Interviewed at Seatrade Europe in Hamburg today, MSC chief executive Pierfranceso Vago said the two additional vessels would be a prototype design broader in the beam than those currently in the fleet and with passenger capacity up to 20% higher than the company’s largest, Fantasia-class vessels.

He said the company is looking at two firm orders, and that it might add options for two more. ‘Economies of scale are dictating the market so yes, they will have a larger passenger capacity than our current ships, he said.

so what does it mean... Fantasia class is about
3300 passengers and 138.000 tons
that would be... 4000 pax and 165.000 tons

so if you want to make money by numbers
the answer is plain.. BIG(GER)
i believe Carnival will surely go this route
as well, they have different brands with smaller
ships as Rich rightly points out

it's not my cup of tea you'll all know that i
prefer my beloved ms Funchal
for me the smaller the better (very often: the more expensive)

best regards
b. Joe

[ 09-29-2011: Message edited by: buddhaJoe ]


Posts: 366 | From: De Goorn, small village in The Netherlands | Registered: Jan 2004  |  IP: Logged
desirod7
First Class Passenger
Member # 1626

posted 09-29-2011 09:37 AM      Profile for desirod7     Send New Private Message      Edit/Delete Post  Reply With Quote 
The spillover costs of the mega cruiseships is that when 3 visit a small island, it becomes overrun with 10,000 tourists plus and is like Grand Central or Kings Cross station at rush hour.

Many experienced cruisers stay on the ship during visits to St. Thomas just for that reason.

At that point people do not take cruise vacations and book land trips instead.


Posts: 5727 | From: Philadelphia, Pa [home of the SS United States] | Registered: Oct 2000  |  IP: Logged
Salaison
First Class Passenger
Member # 4722

posted 09-29-2011 02:21 PM      Profile for Salaison   Email Salaison   Send New Private Message      Edit/Delete Post  Reply With Quote 
Did you just call Fantasy-Class ships old? lol
Posts: 444 | From: St. Lucia--The Sleeping Leviathan | Registered: May 2004  |  IP: Logged
Linerrich
First Class Passenger
Member # 4864

posted 09-29-2011 03:24 PM      Profile for Linerrich   Email Linerrich   Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by Salaison:
Did you just call Fantasy-Class ships old? lol

In ship's age, they ARE getting old. FANTASY came into service over 20 years ago already. A huge percentage of the traditional ocean liners did not last that long in service. Most ships are designed and built with a planned lifespan of 20-30 years.

Rich


Posts: 4210 | From: Miami, FL | Registered: Jul 2004  |  IP: Logged
SSTRAVELER
First Class Passenger
Member # 15170

posted 09-29-2011 04:34 PM      Profile for SSTRAVELER     Send New Private Message      Edit/Delete Post  Reply With Quote 
Yes Carnival is maximizing the profits from the Fantasy class but they also have a related problem. What to do with all of those ships and how to pay for a whole new generation of ships. A lot of Carnival's berths are on ships that have past their mid-life point.

It is going to be a very expensive proposition for Carnival to replace that entire class of ships but they are going to have to do it to stay competitive. And then what are they going to do with all of those ships? There not enough market for second hand tonnage or new markets to send all the ships off to.

Keeping the fleet young and modern is a big part of the game now and going to be a big challenge for Carnival.


Posts: 757 | From: New York | Registered: May 2008  |  IP: Logged
Linerrich
First Class Passenger
Member # 4864

posted 09-29-2011 05:04 PM      Profile for Linerrich   Email Linerrich   Send New Private Message      Edit/Delete Post  Reply With Quote 
Back in the day, it was accepted practice to see outdate ocean liners go to scrap--that was simply part of the process.

But we haven't seen that yet with the new breed of ships built since the late '60s and '70s. The "trickle-down" or "hand-me-down" process can only go on for so long.

Is it within the realm of possibility that Carnival Corp. or others might invest in their own "recycling yard", the euphemism for scrapyards today? I wonder if it would be more profitable for them to sell a whole ship for scrap, or do it themselves and make money on the remains. And I mention this only half in jest!

Rich


Posts: 4210 | From: Miami, FL | Registered: Jul 2004  |  IP: Logged
SSTRAVELER
First Class Passenger
Member # 15170

posted 09-29-2011 05:58 PM      Profile for SSTRAVELER     Send New Private Message      Edit/Delete Post  Reply With Quote 
Sounds like we should all be investing in beach front in India then Rich!

Or maybe they can turn all the ships into floating retirement homes ... Aint we got fun for the over 80 set!

I would think the folks in the boardroom at Carnival Corp are already thinking about this problem. Run them till they drop and then cut them up? But even then they still need to pay for a whole new generation of ships at some point to replace these aged Fantasies and in the meantime they are still running with an older generation of hardware. At some point they are going to have to feel like they are carrying an Apple II into the meeting while all the competitors are sitting there with the iPhone or iPad or Mac Air.

Back to the original question there's no reason Carnival could not start replacing the Fantasy class with another what today amounts to mid-sized class on modern design. Only thing stopping them is money. The Corporation is pouring money into the other brands like AIDA and even Princess. Maybe the strategy is to take CCL all the way down market to be a 21st century version of Commodore or the Regal Empress.

I would love to see the 5 or 10 year plan for CCL because it has to show a fleet replacement getting underway. And maybe finally we will get a design that is not just the Tropicale or Holiday on steroids. Everything that has come out of the Carnival design shop is just an expansion of those two ships -- only the Finish design which Carnival bought but did not create is not a recycle/expansion of the 1980s.


Posts: 757 | From: New York | Registered: May 2008  |  IP: Logged
desirod7
First Class Passenger
Member # 1626

posted 09-29-2011 06:05 PM      Profile for desirod7     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by SSTRAVELER:
Maybe the strategy is to take CCL all the way down market to be a 21st century version of Commodore or the Regal Empress.

Regal Empress, Commodore, and Premier? It was Carnival that cut prices to their level which helped put them out of business. Except for a shipnut, a cruise passenger will go on the more modern ship.

Speaking of Regal, the Greek Line of the day was the demographic that Carnival now caters too: the cheapest thing out there.


Posts: 5727 | From: Philadelphia, Pa [home of the SS United States] | Registered: Oct 2000  |  IP: Logged
Cam J
First Class Passenger
Member # 24617

posted 09-29-2011 11:01 PM      Profile for Cam J   Email Cam J   Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by dmwnc1:
I know this is going to sound pretty stupid to some of you, but Carnival Cruise Lines has pretty much stretched the Destiny-to-Dream Class design about as far as it can go. Why couldn't they then in turn go smaller on a few ships, and in 2014 or 2015 replace some of the aging Fantasy-Class ships with a modified-for-CCL Sphinx class cruise ship used in AIDA Cruises? I know that CCL has spent a bit of money refitting some of the Fantasy-class with balconies, but still it would be nice to see something new for them sporting a newly designed whale tail.

First off, Carnival's next ship order(whenever that may be) will most likely be smaller, and will certainly be a new design.

I don't beleive its "Corporate Greed" that guides Carnival's decisions, as Rich stated earlier, rather its common business sense. As, I have said many many times before; Carnival can't just build a brand new design or platform as often as they would like. If they did, I could only imagine the financial impact.

Look at the impact introducing new platforms has had on Royal Caribbean and their finances.

Imagine if Carnival did the same; the financial consequences would be much much worse.

Regarding the Fantasy class, they can still be competitive in the short cruise market, and are crurrently fufilling their purpose. They are a good fit for that segment of the industry and I dont see why they should be replaced at the moment.


Cam J


Posts: 503 | From: Belvedere, CA | Registered: Jun 2009  |  IP: Logged
dougnewman
First Class Passenger
Member # 11349

posted 10-01-2011 03:55 AM      Profile for dougnewman   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
They could... I guess what you really mean is why wouldn't they, in which case the answer is pretty simple: bigger ships are more profitable (at least up to a point). Even AIDA's next ships are going to be way, way bigger than the Sphinx-class ships.

With the exception of any further ships that might be ordered for Seabourn, which will obviously be small, the remaining Sphinx-class orders are almost certainly the last sub-100,000-GT ships that Carnival will build for the foreseeable future, and quite possibly ever, for any of its brands.

As far as the Carnival brand goes, when they are finished with the DREAM-class (and there could be more of those coming for both Carnival and Costa yet), I imagine the next ships will be at least as large, and probably (incrementally) larger.


Posts: 2072 | From: Long Island, NY, USA | Registered: Sep 2007  |  IP: Logged
dmwnc1
Cruise Director
Member # 3785

posted 10-01-2011 09:06 AM      Profile for dmwnc1   Email dmwnc1   Send New Private Message      Edit/Delete Post  Reply With Quote 
Any idea how much of the Carnival fleet is already 'paid' for? The ships that are basically just profit revenue?

I still think it would be cool if they could get three of the Sphinx-class, with all those balconies, and put them on the short cruise market out of south Florida or LA. Seems like it would one-up any competition with the 'older' ships like the Sovereign-class or Norwegian Sky.

[ 10-01-2011: Message edited by: dmwnc1 ]


Posts: 5650 | From: Clarksburg WV | Registered: Apr 2003  |  IP: Logged
Linerrich
First Class Passenger
Member # 4864

posted 10-01-2011 09:26 AM      Profile for Linerrich   Email Linerrich   Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by dmwnc1:

I still think it would be cool if they could get three of the Sphinx-class, with all those balconies, and put them on the short cruise market out of south Florida or LA. Seems like it would one-up any competition with the 'older' ships like the Sovereign-class or Norwegian Sky.

[ 10-01-2011: Message edited by: dmwnc1 ]


Historically, it's been a hard sell to offer lots of balconies on the short cruises. There is a lot of price resistance to paying premium rates for premium accommodations for only 3 nights, and the alternative is to drop the rates drastically, which the lines of course don't want to do. This is why we have not seen very much of the newer, balcony-laden ships on this run.

Of course the time is approaching when nearly all available ships will have tons of balconies, and eventually they will have to be put on the 3 & 4-night cruises. It will be interesting to see how the price points work out then.

Rich


Posts: 4210 | From: Miami, FL | Registered: Jul 2004  |  IP: Logged

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