Table of Contents

Current COVID-19 Overview

Carnival Overview

Impacts on Carnival

Carnival’s Response

Carnival post-COVID-19

Appendix

Carnival Corporation - The impact of COVID-19: Case Study

Summary

Recent months have been unprecedented for cruise liners. Travel restrictions, sailing suspensions, falling consumer confidence and a slew of negative press are just some of the issues cruise operators are having to contend with. As the industry’s largest player, Carnival is severely impacted.

Key Highlights

- Carnival has suspended operations throughout the summer months, usually a very busy time for cruise operators. This reduction in bookings has resulted in a revenue plummet, a drop in consumer confidence and knock on impacts to the jobs sector and onto cruise-dependent countries such as in the Caribbean.
- Carnival will suffer from the negative media impact that COVID-19 has created, regarding the cruise industry as a whole and also to Carnival’s brands.
- Carnival stocks and shares have plummeted in price by almost 80%, and the financial impact that Carnival will experience will be prolonged for many years.
- Carnival has extended its cancellation policy to adapt to impacted travelers on suspended sailings. Customers are encouraged to accept Future Cruise Credit (FCC) to rebook a sailing for later on in 2020 or 2021, rather than a cash refund.
- Carnival has raised over $6 billion (USD) in liquidity via multiple methods in order to offset the financial impact that COVID-19 will have.

Scope

- This case study looks at how the COVID-19 pandemic is impacting Carnival and assesses the company's response.

Reasons to Buy

- Gain an overview of the current global COVID-19 situation
- Understand the impact that COVID-19 is having on the cruise industry
- Assess the impact on Carnival and its subsidiaries
- Understand what the future may hold for Carnival