include Europe (more than 30%), and Australia and Asia (almost 15%).Sales and MarketingCarnival's global headquarters are located at Miami, Florida. Major operations are in city-ports like include Seattle(USA), Genoa, Santa Clarita, Almere (the Netherlands), Rostock (Germany), Southampton (the UK), Hamburg(Germany), Sydney (Australia), and Shanghai (China).Carnival's largest market is North America, which represents more than 50% of sales. Other major marketsinclude Europe (more than 30%), and Australia and Asia (almost 15%).Financial PerformanceCarnival's revenue has been on an upward trend in the last five years, increasing from $15.8 billion in 2014 to $18.8billion in 2018. A $1-billion increase in passenger ticket sales boosted revenue by 8%. This was driven primarily byprice improvements in European, Australian, and Chinese operations as well as in net favorable foreign currencyexchange rate.Carnival’s net income spiked 21% to $3.1 billion, its highest profit ever, to grow for the fifth consecutive year. Thegrowth came mostly from the absence of $89 million charged in 2017 in depreciation and amortization costs.Cash holdings improved from $395 million in 2017 to $982 million in 2018. While Operations generated $5.5 billionin positive cash inflows, investments utilized $3.5 billion and a further $1.4 billion went towards financing activities.The company issued $2.5 billion in long-term debt in 2018, more than the preceding two years combined.StrategyCarnival has remained the top player in the commercial cruise ship space for over a decade. Its strategy hasincluded spending top dollar on brand recognition through innovative marketing campaigns and adding on newfleets and routes.Carnival uses easily recognizable celebrities (from Oprah Winfrey to Her Majesty the Queen) and highly popular on-air time slots (including The New Celebrity Apprentice and The Ellen DeGeneres Show) to reach some 400 millioncommercial viewers. It also has its own proprietary travel shows like Voyager with Josh Garcia and Ocean Trekswith Jeff Corwin.Fleet replenishment has been a company priority. In five years, 12 state-of-the-art, larger, more efficient vesselsreplaced nine older ships, reducing costs by $350 million. The company’s ultimate strategic goal is attracting newpassengers and retaining existing passengers.Carnival is actively expanding its destination offerings to attract more customers. A new location in Amber Covewas also opened, and new terminals welcomed tourists in Barcelona and Dubai. Carnival also has a joint ventureagreement with China State Shipbuilding Corporation to create a local cruise operating company that will assist increating a cruise industry in China. The company is aiming for a net capacity growth of 5%, compounded annually.However, recent instances of gastrointestinal illness (500 people got sick aboard a Royal Caribbean cruise liner in2019) may affect the cruise industry in general.Company BackgroundCarnival Corporation was incorporated in Panama in 1972 and Carnival plc was incorporated in England and Walesin 2000, operatingas a dual-listed company.