CARNIVAL CRUISE LINES

Carnival Cruise Lines Managerial Accounting

Carnival Cruise Lines Managerial Accounting

Introduction

Carnival Corporation & plc (Carnival) is a global cruise company and one of the largest vacation companies in the world. The company has a portfolio of cruise brands and is a provider of cruises to all vacation destinations. The company primarily operates in the US, the UK, Continental Europe and Canada. It is headquartered in Miami, Florida, and employs over 10,700 people on a full-time basis. The company maintains another headquarters in London, the UK (Steeple, 1995, 85-236). Carnival Corporation and Carnival plc completed a dual listed company (DLC) transaction in 2003 which implemented Carnival Corporation & plc's DLC structure. According to the transaction, both the companies operated under separate stock exchange listings and their own shareholders. However, the boards and senior executive management of both companies are identical. The company recorded revenues of $14,646 million during the financial year (FY) ended November 2008, an increase of 12.4% over 2007.The operating profit of the company was $2,729 million during FY2008, an increase of 0.1% over 2007. The net profit was $2,330 million in FY2008, a decrease of 3.2% over 2007 (Corporate Address).

Largest cruise operator

Carnival is one of the world's largest cruise operators. As on January 2009, the company operated 88 cruise ships with a passenger capacity of 169,040 berths. Carnival carries about eight million passengers annually. In contrast, one of carnival's key competitors, Royal Caribbean, operates only 35 ships with about 71,200 berths. Another competitor, Star Cruise, has 21 cruise ships and a capacity of 33,300 berths. Being one of the world's largest cruise operators enhances Carnival's bargaining power and market penetration opportunities. Strong brand portfolio Carnival has a portfolio of 11 widely recognized cruise brands (Steeple, 1995, 85-236). The company's portfolio of brands includes: Carnival Cruise Lines, Princess Cruises, Holland America Line, Costa Cruises, P&O Cruises, AIDA Cruises, Cunard Line, P&O Cruises Australia, Ocean Village, Seabourn Cruise Line and Ibero Cruises. These brands cater to different lifestyles and budgets (categorized into contemporary, premium and luxury cruise experiences). They also target different cultures and demographic groups while addressing people's diverse entertainment and holiday preferences. Carnival has harnessed its strong brand portfolio to attract more customers, thereby becoming a leading provider of cruises to all major vacation destinations.

Managerial Accounting

Carnival Corp, the world's largest cruise-line operator, Tuesday reported first-quarter profits after cutting costs and offering heavy discounts. The Miami-based ...