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Carnival Cruise Lines - In Perspective

Article from: 
US
Tue, 11/02/2014 - 19:26
By: 
Ted Marzilli
Carnival

What a difference one year makes for Carnival Cruise Lines.

Last winter, the company had a series of well-publicized crises on their hands, including a disabled ship, The Triumph, adrift in the Gulf of Mexico.

However, Carnival not only brought its consumer perception back in line with the rest of industry this past fall, but their sales potential with consumers has rebounded above the rest of the cruise sector.

By YouGov BrandIndex’s calculations, it took nearly a full year, 334 days, for Carnival to recover to its previous perception levels, half the amount it took both BP and Toyota with their respective problems. Carnival is comparable to J.P. Morgan in the wake of their “London Whale” trading scandal and subsequent appearance before Congress – that lasted 213 days.

Carnival’s recovery may have been accelerated by a number of initiatives:

• Spending $300 million in improvements in the fleet’s safety system, and incorporating a review of each ship.
• Installing “Fun Ship 2.0” upgrades to their entertainment, bars and restaurants.
• Forming a Safety and Reliability Review Board, comprising outside experts, including two retired U.S. Navy Rear Admirals, a former member of the National Transportation Safety Board and a former senior vice president with Delta Airlines.

While Carnival’s perception comeback is impressive, it is accompanied with rising purchase consideration levels, an indicator of strong potential sales. Carnival spent much of 2013’s fourth quarter ahead of the cruise industry on this metric, and is currently scoring just about even to a benchmark of its cruise industry peers.

Carnival Cruise Lines was measured with two of YouGov BrandIndex’s metrics: Buzz, which asks "If you've heard anything about the brand in the last two weeks, through advertising, news or word of mouth, was it positive or negative?"; and Purchase Consideration, asking respondents “When you are in the market next to purchase products in this category, from which of the following brands would you consider purchasing.” All respondents were adults who say they are considering a cruise in the next 12 months.

YouGov BrandIndex’s Buzz score ranges from 100 to -100 and are compiled by subtracting negative feedback from positive. A zero score means equal positive and negative feedback.

YouGov BrandIndex’s Purchase Consideration scale is from zero to 100%.

Purchase Consideration: Carnival, Cruise Sector
Purchase Consideration: Carnival, Cruise Sector
Buzz: BP, Carnival, J.P.Morgan, Toyota, Southwest. (X-axis starting 2 weeks before each crisis and measured in number of days from that point)
Buzz: BP, Carnival, J.P.Morgan, Toyota, Southwest.
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