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Carnival outlines future European focus
European cruise passengers will take a greater share of Carnival Corporation business by 2010.
North America accounts for 70% of the group’s passenger base last year, with Europeans and the rest of the world accounting for 30%.
This will shift to 60% North Americans and 40% Europeans and the rest of the world in three years as the company continues to expand operations beyond its US base.
Chief operating officer and vice-chairman Howard Frank told the group’s annual shareholder meeting: “In North America we plan to add eight ships from 2007 through 2010. While North America remains our largest market, we have intensified our efforts at growing our European business, both through strategic alliances with existing travel companies in the region, as well as an aggressive newbuilding programme that will introduce 12 new ships for our European brands through 2010.”
The ship orders are worth almost $11 billion and represent half of the cruise industry’s total order book.
New ships for European brands include two for P&O Cruises, one for Cunard, four for Costa, four for Aida and one for a planned joint venture with TUI for 2010. Carnival also plans to transfer two older ships from the US to its Spanish joint venture company Orizonia, doubling the fleet of its Iberocruises brand.
The company is to also add two larger ships to the luxury Seabourn brand, a sector where it sees high growth potential.
Frank said that Carnival’s five core business regions – US, UK, Germany, Italy and Spain, “all offer tremendous growth potential because of their favourable demographics and low penetration levels.”
The company defended the sale of Swan Hellenic against criticism from a shareholder, saying the management had to focus on large investments which give the greatest returns.
Carnival announced a 27% rise in quaterly dividend to $0.35 per share from $0.275 per share.
by Phil Davies
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