1980s to 90s The 1980s brought the cruise industry massive expansion Between

1980s to 90s the 1980s brought the cruise industry

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1980’s to 90’sThe 1980s brought the cruise industry massive expansion: Between 1981 and 1991 the number of berths on North American cruise ships grew from 41,000 to 84,000. Carnival was the chief exponent and beneficiary of the boom.1980: Carnival's revenues grew 30 percent annually, three times faster than the average for the cruise business as a whole. During the recession of the early 1980s, Carnival ordered three more ships. The first, from the Danish Aalborg Shipyard, at a cost of $180 million and two additional vessels, from the Swedish State Shipbuilding Company, Svenska Varv, for a total of $262 million. Those ships were; The Holiday, The Jubilee, and The Celebration . During the next decade the number of passengers carried per year nearly quintupled and with seven vessels became the world's largest fleet in the cruise line industry. 1982: Passenger occupancy rose to 200,000. Revenues ran to $200 million with earnings at $40 million1984: Carnival initiates its "Fun Ship" advertising campaign, which features talk show host Kathie Lee Gifford.1987: Carnival goes public.1988: The Company purchases the Holland America Line for $625 million. Also, as part of the package, Carnival acquired two other companies that Holland America owned: Windstar Sail Cruises and Holland America West-tours, which included Westmark Hotels.1989: Carnival completed the Crystal Palace Resort & Casino, a lavish 150-acre resort in the Bahamas, which cost Carnival $250 million to develop.
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1990’s to 2000At the age of 66, Ted Arison stepped down as chairperson of Carnival and was taken over by his son, Micky. Shortly after that, business began to dip becaue of the war in thePersian Gulf that brought higher fuel and airline costs and deterred tourists. Carnival's stock price, slid from 25 points in June 1990 to 13 points late in the year. At the same time, it became apparent that the Crystal Palace would be an unprofitable venture. By the end of 1990, Carnival incurred a $25.5 million loss from the resort and casino operation and began attempting to sell the Crystal Palace.1991: With no prospective buyers, Carnival agreed to turn over a large portion of the resort to the Bahamian government, in exchange for a cancelation of some of the debt incurred during construction. Carnival took a $135 million write-down on the Crystal Palace for that year.1991: Still, Carnival enjoyed a 26 percent share of the passengers in the $5 billion cruise ship market, with revenues of $1.4 billion. Its average occupancy level stood at 103 percent, well above the industry's average of 90 percent. To gain more working capital, Carnival offered 7.85 million Class A common shares for sale in 1991. 1991: Negotiated to purchase Priemer Cruise Lines for $372 million to get in on a Disney World contract in Orlando, Florida. Unfortunately they could not agree on a priceand deal fell through.
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  • Fall '11
  • ThomasSeiler
  • Carnival Cruise Lines, Holland America Line, Carnival, Carnival Corporation & PLC

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