WEBVTT - Carnival CEO Says Vaccinated Can 'Come Aboard' 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Karl Masser and I'm 0:00:04.480 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanovk. We're here every day bringing 0:00:07.320 --> 0:00:09.840 you the latest news from the world to business and finance, 0:00:09.840 --> 0:00:13.680 plus technology, politics, economics, all purtnising the power of Business 0:00:13.680 --> 0:00:17.160 Week reporters and editors, not to mention our journalists and 0:00:17.160 --> 0:00:20.000 analyst in more than one twenty countries. You can download 0:00:20.000 --> 0:00:23.479 Bloomberg Business weekend iTunes, SoundCloud, or Bloomberg dot Com. You 0:00:23.480 --> 0:00:25.439 can also listen to our radio show at two pm 0:00:25.440 --> 0:00:28.360 Eastern Time on Bloomberg Radio or watch us on YouTube 0:00:28.400 --> 0:00:32.040 search Bloomberg Global News. You are listening to Bloomberg Business 0:00:32.120 --> 0:00:35.680 Week here on Bloomberg Radio, on YouTube and of course 0:00:36.479 --> 0:00:39.360 around the world. Here what we are going to get 0:00:39.400 --> 0:00:41.360 into is in the cruise industry, because we are here 0:00:41.400 --> 0:00:43.440 with one of the CEOs of the world's lord. We 0:00:43.479 --> 0:00:44.720 are here with the CEO, i should say, of the 0:00:44.760 --> 0:00:47.400 world's largest cruise operator, the company by the way, launching 0:00:47.440 --> 0:00:49.240 its first cruise from a US port. They did that 0:00:49.280 --> 0:00:52.360 on July three out of Galveston, followed by their first 0:00:52.360 --> 0:00:54.600 cruise from Port Miami that was on July four. He 0:00:54.720 --> 0:00:57.520 was there and then Carnival Breeze setting sale today out 0:00:57.520 --> 0:01:01.200 of Galveston. That's happening at four thirty pm Eastern, So 0:01:01.280 --> 0:01:04.520 let's get to it with Arnold Donald, Presidency of Carnival. Arnold, 0:01:04.520 --> 0:01:06.560 it is great to have you back with us. I 0:01:06.560 --> 0:01:09.440 feel like you and I have been talking about a restart, 0:01:09.520 --> 0:01:13.319 things getting back closer to normal for a long time. 0:01:13.920 --> 0:01:15.880 How does it feel You've been waiting a long time 0:01:15.920 --> 0:01:18.199 for this, especially to see those ships out of US ports. 0:01:19.120 --> 0:01:22.479 You know, Carol, good afternoon, first of all, but it 0:01:22.560 --> 0:01:28.800 is a phenomenally exciting, fulfilling feeling, not just because we 0:01:28.840 --> 0:01:32.600 get to welcome guests back on board our ships, but 0:01:32.720 --> 0:01:36.440 also because there's so many people who are dependent on 0:01:36.640 --> 0:01:41.760 cruise for their livelihood, you know, port workers, uh, uber drivers, 0:01:41.800 --> 0:01:46.200 taxi drivers, the destinations around the world all have um 0:01:46.520 --> 0:01:49.600 so many people depending on the industry and people providing 0:01:49.640 --> 0:01:52.840 provisions to the ships and servicing the ships. So it's 0:01:52.880 --> 0:01:56.600 a very exciting time to have guest operations once again 0:01:56.920 --> 0:01:59.480 out of the US. How's it going so far with 0:01:59.520 --> 0:02:01.200 these ships that you have, And I know you've had 0:02:01.200 --> 0:02:03.760 ships going on over in Europe, so you know you've 0:02:03.960 --> 0:02:06.800 you have some experience in how things go post pandemic. 0:02:07.120 --> 0:02:09.320 How about with the U S ship specifically, because I 0:02:09.320 --> 0:02:12.160 believe off the Galveston ship passengers have already come off. 0:02:12.360 --> 0:02:14.600 How did it go? Is there any COVID cases where 0:02:14.600 --> 0:02:18.000 there are any concerns? You know, it's gone exceedingly well. 0:02:18.639 --> 0:02:20.640 The ships in Europe, as you pointed out, for our 0:02:20.800 --> 0:02:24.119 Costa and out brands, have been saving h sailing under 0:02:24.160 --> 0:02:28.040 different protocols because largely there are people are on vaccinated, 0:02:28.320 --> 0:02:33.880 so physical distancing, um, universal testing, additional medical screening, et cetera. 0:02:34.560 --> 0:02:37.440 So far here in the US, we've been sailing under 0:02:37.480 --> 0:02:41.040 the Conditional Sale Order issued by the Center for Disease Control, 0:02:41.919 --> 0:02:46.120 which focuses on having most of the guests vaccinated and 0:02:46.200 --> 0:02:49.880 that allows for more open cruise, and they've gone very 0:02:50.000 --> 0:02:53.200 very very well. We just got the net promoter scores 0:02:53.280 --> 0:02:56.520 back from the guests and it's the highest scores we've 0:02:56.560 --> 0:03:00.320 had and and quite some time. Unlike a lot of 0:03:00.360 --> 0:03:03.240 the other folks sailing, we had a lot of people 0:03:03.240 --> 0:03:05.720 on our ship. We had over twenty six d guests 0:03:05.760 --> 0:03:10.280 on one ship over another. We've already into our second 0:03:10.800 --> 0:03:13.360 week of cruising those ships with even more guests on 0:03:13.400 --> 0:03:16.680 board and the experience has just been fantastic, and it's 0:03:16.800 --> 0:03:20.040 it's a very rewarding feeling to finally be get back 0:03:20.320 --> 0:03:25.760 out s c um exceeding guests expectations and and just 0:03:26.000 --> 0:03:29.320 developing lifelong memories for people. Arnold, give us an idea 0:03:29.400 --> 0:03:32.280 about demand right now, because twenty nineteen was a record 0:03:32.400 --> 0:03:38.200 year in terms of bookings. Where are you right now, kay, tim, 0:03:38.200 --> 0:03:40.640 Where we are right now is what we've told you 0:03:40.760 --> 0:03:44.720 back in June. Between quarters were publicly traded companies, so 0:03:44.760 --> 0:03:47.160 we can only say so much. But at that time 0:03:47.520 --> 0:03:50.880 we indicated that our bookings second half of twenty two 0:03:51.320 --> 0:03:55.080 were well in excess of nineteens kind of record bookings, 0:03:55.240 --> 0:03:58.320 same point in time. Uh. And right now, it's hard 0:03:58.400 --> 0:04:02.920 to talk a lot of about occompascy and whatnot because 0:04:02.920 --> 0:04:06.040 of all the rules and regulations and restrictions and what 0:04:06.080 --> 0:04:09.160 have you, and some things we self impose on ourselves, 0:04:09.240 --> 0:04:13.680 for example in Europe, where we've absolutely reduced the number 0:04:13.720 --> 0:04:18.719 because of the additional protocols in place for those unvaccinated cruises. 0:04:19.160 --> 0:04:22.599 But to make a long story short, demand is robust. 0:04:23.000 --> 0:04:25.800 We have plenty of demand. UM. We're bringing the ships 0:04:25.880 --> 0:04:29.320 just in UM a few at a time, we have 0:04:29.960 --> 0:04:33.880 eighty five ships in total. Today's sailing in the US, 0:04:34.000 --> 0:04:37.680 we've had three we're about to launch uh new sailing 0:04:37.720 --> 0:04:40.760 as you mentioned, and a Breeze which will be our 0:04:40.839 --> 0:04:43.800 fourth one, and then we'll have three ships in Seattle 0:04:44.680 --> 0:04:49.880 later this month, and then July one Marti Gras Carnival, 0:04:50.360 --> 0:04:54.200 uh so our newer ship and uh just an unbelievably 0:04:54.240 --> 0:04:57.640 fabulous ship with the first roller coaster a s first 0:04:57.720 --> 0:04:59.719 roller coaster at sea. Can you give us an idea 0:04:59.800 --> 0:05:02.599 of pricing power that you have right now? Considering demand 0:05:02.680 --> 0:05:04.480 is so strong and look this, I'm asking this question 0:05:04.480 --> 0:05:06.480 the context of the inflation data that we got earlier 0:05:06.520 --> 0:05:09.680 this week. People are getting back out there. Companies are 0:05:09.760 --> 0:05:12.120 raising prices because demand is so high. What is your 0:05:12.160 --> 0:05:17.240 pricing power right now? Yeah, well, pricing is strong, there's 0:05:17.240 --> 0:05:19.880 no question about it. Um. You know, there's far more 0:05:20.000 --> 0:05:24.320 demand than there are cabins available, especially here in the 0:05:24.440 --> 0:05:27.760 US with the sailors we have. So pricing is strong 0:05:27.800 --> 0:05:30.560 and we expected to continue to be strong, not only 0:05:30.600 --> 0:05:34.599 because we're the best vacation experience there is, but we're 0:05:34.600 --> 0:05:37.560 the best vacation value there is, even with strong or 0:05:37.600 --> 0:05:41.160 pricing compared to equid on land based vacation, and so 0:05:41.200 --> 0:05:45.200 we're expecting a robust environment and demand, which leads so 0:05:45.400 --> 0:05:50.560 robust environment for pricing, especially with the staggered introduction of 0:05:51.000 --> 0:05:54.479 ships coming back in, which is going to happen you 0:05:54.520 --> 0:05:57.400 know over time, is destinations begin to open again? Are 0:05:57.440 --> 0:06:00.320 pricing similar to what we had pre pandemic? Aren't? Are 0:06:00.360 --> 0:06:02.400 we seeing it similar to that? Or is there a 0:06:02.440 --> 0:06:06.600 little bit more flexibility? Um? Right now, I would say 0:06:06.640 --> 0:06:09.120 if again, if you look at bookings. So I can 0:06:09.160 --> 0:06:12.400 only say what what I've said during the business subding. 0:06:12.960 --> 0:06:16.120 But the fact is pricing is stronger, is stronger than 0:06:16.160 --> 0:06:19.720 what it was. So you know what's interesting too is 0:06:19.800 --> 0:06:22.480 I have to wonder Arnold, you know, you came in 0:06:22.520 --> 0:06:26.800 after some crises at the ship, really righted the company. 0:06:26.920 --> 0:06:29.919 I do wonder how difficult though it is um to 0:06:30.040 --> 0:06:32.880 kind of assess your outlook for this industry, especially you know, 0:06:32.960 --> 0:06:35.400 we talk every day about the delta variant and the 0:06:35.520 --> 0:06:37.520 increases that we're seeing once again. Right, and you have 0:06:37.560 --> 0:06:40.279 different rules and regulations. We just had a headline Canada 0:06:40.320 --> 0:06:42.560 to lift the ban on large cruise ships as of 0:06:42.600 --> 0:06:45.719 November first. That just crossed a few minutes ago across 0:06:45.760 --> 0:06:50.320 the Bloomberg. How difficult is it to assess the outlook 0:06:50.480 --> 0:06:53.400 and get get ahold of the business, especially when once 0:06:53.400 --> 0:06:56.159 again we have something like the delta variant. Well, I 0:06:56.200 --> 0:07:00.560 think so several comments. First, everyone should give backs is 0:07:00.600 --> 0:07:03.840 the best way to protect themselves and those that they love. 0:07:04.200 --> 0:07:07.320 So everyone should try to get a vaccination less they 0:07:07.360 --> 0:07:11.800 have a medical reason, are deep religious belief uh to 0:07:11.920 --> 0:07:15.440 not other than that they should get vaccinated. Heaven said 0:07:15.520 --> 0:07:18.760 that there will be other variants. There's a delta varian, 0:07:18.760 --> 0:07:21.040 will be other variants. And what we have to do 0:07:21.160 --> 0:07:24.960 is learn as a society overall how to live with 0:07:25.040 --> 0:07:28.160 this virus and the various variants that can come. And 0:07:28.200 --> 0:07:31.000 the best way to do that is to take the 0:07:31.080 --> 0:07:36.000 advanced medical uh knowledge that exists and take advantage of it. 0:07:36.120 --> 0:07:40.800 So vaccinations now, later, there's also advanced treatments. If if 0:07:40.800 --> 0:07:44.160 someone does happen to contract the virus and having challenges 0:07:44.240 --> 0:07:47.200 with it and so and then the other measures we 0:07:47.240 --> 0:07:49.600 need to take. If there's a variant that shows up 0:07:49.720 --> 0:07:53.320 which hasn't happened yet that is threatening to those who 0:07:53.360 --> 0:07:57.080 are vaccinated, UH, then we'll have to return the protocols 0:07:57.240 --> 0:08:00.679 of mask wearing and physical distancing and things we've learned 0:08:01.120 --> 0:08:04.400 until the medicine catch us up, you know, with that 0:08:04.440 --> 0:08:08.800 particular variant. So keep in mind we've dealt with viruses 0:08:09.560 --> 0:08:12.400 for decades um. The cruise innistrant has had to deal 0:08:12.400 --> 0:08:15.600 with ebola and zekea and SARS and mers and and 0:08:15.640 --> 0:08:18.080 the world has had to uh and now on the 0:08:18.080 --> 0:08:20.920 world is getting a grip on this particular virus and 0:08:20.960 --> 0:08:24.760 plot us to all the scientists and technologists and all 0:08:24.800 --> 0:08:28.040 the people, the first responders, everyone that has gotten us 0:08:28.640 --> 0:08:31.400 to have gotten us to this point, which is a 0:08:31.400 --> 0:08:35.520 phenomenal thing, from something that we didn't even understand fifteen 0:08:35.559 --> 0:08:40.240 months ago, to multiple vaccines, advanced treatments, you know, known 0:08:40.320 --> 0:08:44.240 protocols to mitigate spread, and if we act responsibly, we 0:08:44.280 --> 0:08:47.920 can manage this. We are talking with Arnold Donald, of course, 0:08:48.000 --> 0:08:51.240 the CEO of Carnival Corporation. We do want to welcome 0:08:51.320 --> 0:08:53.520 all of our viewers on Bloomberg TV. We are live 0:08:53.559 --> 0:08:56.959 on Bloomberg TV, Bloomberg Radio and on YouTube. Here Arnald, 0:08:57.240 --> 0:08:58.959 let me push a little bit on the delta variant. 0:08:59.000 --> 0:09:02.800 I mean, how does the delta variant at all impact 0:09:02.880 --> 0:09:05.600 your restart, especially here in the United States. As we said, 0:09:05.679 --> 0:09:09.480 Carnival Breeze going out UH shortly later this afternoon. Um 0:09:09.559 --> 0:09:12.360 does it. Are you seeing any impact on bookings or 0:09:12.400 --> 0:09:16.200 any cancelations as a result of that? I know we 0:09:16.280 --> 0:09:20.120 have not. We have not seen a major impact. Again, 0:09:20.240 --> 0:09:23.720 I think the scientists around the world are pretty much 0:09:23.720 --> 0:09:29.760 aligned around the fact that being vaccinated UH prevents two things. 0:09:29.880 --> 0:09:33.839 One is possibility of contracting a virus. But then if 0:09:33.880 --> 0:09:37.640 you do contract it, um probability that you have any 0:09:37.679 --> 0:09:41.480 serious effects from it. It also appears, and there's a 0:09:41.480 --> 0:09:43.880 little more debate around this, but the scientists seemed to 0:09:43.920 --> 0:09:47.040 agree that it also mitigates the spread of the virus. 0:09:47.320 --> 0:09:48.920 That if you have it, you have less of a 0:09:49.000 --> 0:09:52.320 viral load and so your propensity to transmit is a 0:09:52.320 --> 0:09:55.160 little bit less. So we have not seen a big 0:09:55.200 --> 0:09:59.920 impact from it. Obviously, it will impact access to destinations, 0:10:00.360 --> 0:10:03.600 you know, places where people aren't vaccinated yet are are 0:10:03.679 --> 0:10:06.600 just not enough of the population is so it can 0:10:06.640 --> 0:10:09.640 slow down progress that way, and then we're gonna pay 0:10:09.720 --> 0:10:13.920 close attention. But as we always do, will follow you know, 0:10:14.040 --> 0:10:16.280 the authorities around the world. We have to be in 0:10:16.320 --> 0:10:21.280 compliance everywhere, and we'll follow the good Council from the 0:10:21.400 --> 0:10:26.760 leading medical um UH, scientists and and and personnel that 0:10:26.800 --> 0:10:28.880 we work with constantly. Hey, Arnold, you've seen a lot 0:10:28.880 --> 0:10:31.560 of economic cycles, and I think we're trying to assess 0:10:31.760 --> 0:10:34.280 in our conversations with everybody here at Bloomberg and on 0:10:34.360 --> 0:10:37.360 air Uh, what is the economic outlook? You'll hear from 0:10:37.400 --> 0:10:41.080 one airline ceo says things are gangbusters, Things are going 0:10:41.280 --> 0:10:43.520 you know, really really strong. We hear from the FED chief. 0:10:43.559 --> 0:10:46.040 We're here from FED members uh that you know, the 0:10:46.040 --> 0:10:48.559 FED Chief reminding us once again that listen, you know, 0:10:48.559 --> 0:10:50.200 it's gonna take time to get back to where we 0:10:50.200 --> 0:10:53.120 were pre pandemic, which is why he is still supportive 0:10:53.600 --> 0:10:55.559 of some of the measures that the FED has taken 0:10:55.640 --> 0:10:59.000 during the crisis. How do you see it? Um? Is 0:10:59.040 --> 0:11:02.480 the economy going gangbusters? Getting closer? Is it going to 0:11:02.559 --> 0:11:04.560 be for a little bit and then calm down? How 0:11:04.640 --> 0:11:09.880 would you describe it? You know, I'm not an economist, uh, 0:11:10.000 --> 0:11:14.920 pronoxticator extraordinary or anything, but my experience right now is 0:11:14.960 --> 0:11:18.320 the economy is strong, and that there's a lot of 0:11:18.360 --> 0:11:21.680 pent up demand. People are anxious to travel and to 0:11:21.880 --> 0:11:25.360 enjoy things again. They've been um, you know, for quite 0:11:25.440 --> 0:11:29.840 sometime on lockdown or near lockdown, and so there's a 0:11:29.960 --> 0:11:33.840 lot of excitement and interests. People are having a hard 0:11:33.880 --> 0:11:37.280 time hiring people for a period of time because of 0:11:37.440 --> 0:11:42.120 similar packages and another thing, are you having problems hiring people? Well, 0:11:42.160 --> 0:11:44.960 we recruit from a hundred and forty five countries around 0:11:45.040 --> 0:11:47.880 the world, and so for us, that's really not the 0:11:47.960 --> 0:11:51.560 issue on the short side jobs. As we ramp up, 0:11:51.840 --> 0:11:55.959 I'm sure we'll face some challenges in in some areas. Hey, Arnold, 0:11:56.040 --> 0:11:58.240 given that you recruit from a d forty five countries 0:11:58.280 --> 0:12:00.200 all over the world, how do you ensure that your 0:12:00.320 --> 0:12:04.320 staff actually have access to vaccines given that the vaccine 0:12:04.400 --> 0:12:08.600 rollout across the world has been really uneven. That's a 0:12:08.640 --> 0:12:11.560 great question to him, and we are very grateful to 0:12:12.440 --> 0:12:15.280 so many people around the world who have helped us 0:12:15.320 --> 0:12:19.440 gain access to vaccines for our crew, because the reality is, 0:12:19.920 --> 0:12:23.800 we can as a commercial in any directly access to vaccines. 0:12:24.320 --> 0:12:29.360 So it's the localities like Miami and Galveston and here 0:12:29.360 --> 0:12:32.360 in the US and other places around the world that 0:12:32.400 --> 0:12:35.720 have made the vaccines available, and they do be so 0:12:35.920 --> 0:12:39.120 because they know the economic impact of cruise and so 0:12:39.200 --> 0:12:43.360 we can get our crew vaccinated that way and have 0:12:43.520 --> 0:12:46.240 been around the world. So using the United States to 0:12:46.480 --> 0:12:50.920 vaccinate cruise from around the world. Yes, we're getting vaccines 0:12:51.320 --> 0:12:54.320 around the world. We're also vaccinating it in the UK 0:12:54.640 --> 0:12:58.679 and other ports around the world. And my understanding is 0:12:58.800 --> 0:13:01.839 arnold that you know, or to get a ship out 0:13:01.840 --> 0:13:04.680 of a US port, you have I think at least 0:13:05.240 --> 0:13:08.880 passengers crew vaccinated. Is that is that correct? Is at 0:13:08.880 --> 0:13:12.960 the minimum that's on the conditional sale order that the 0:13:13.040 --> 0:13:17.040 Center for Disease Control currently has in place, So you 0:13:17.080 --> 0:13:21.400 can sail that way, um without a lot of restrictions. 0:13:21.440 --> 0:13:24.760 You know, the guests don't have the physically distance, they 0:13:24.960 --> 0:13:27.839 don't have to wear a mask. We we recommend they 0:13:27.880 --> 0:13:30.080 wear a mask anyway, but but they don't have to. 0:13:30.760 --> 0:13:33.640 And so if you want to sail onto those conditions 0:13:33.640 --> 0:13:37.240 which are the ideal conditions? And I know you guys, 0:13:37.400 --> 0:13:39.400 and I know we're talking with your team and with 0:13:39.440 --> 0:13:40.959 you that you guys have been back and forth with 0:13:41.040 --> 0:13:43.000 the CDC and really you know, trying to get up 0:13:43.040 --> 0:13:46.040 to date and keep up to date um with the 0:13:46.040 --> 0:13:48.880 conditional sale orders and the changing conditions. You know, what 0:13:49.120 --> 0:13:51.600 is the CDC telling you that this are you at 0:13:51.640 --> 0:13:53.640 all concerned that they're going to kind of pump the 0:13:53.679 --> 0:13:56.079 brakes when it comes to the restart here in the 0:13:56.160 --> 0:14:00.920 United States. We have a few remaining challenges UM to 0:14:00.920 --> 0:14:04.160 to get through. For example, if you wanted to sail 0:14:04.840 --> 0:14:09.720 with less than of the guests vaccinated. UH, some of 0:14:09.760 --> 0:14:15.120 the protocols that are currently mandated make it almost impossible 0:14:15.760 --> 0:14:19.040 to sail in a manner that works for the guests, 0:14:19.160 --> 0:14:21.800 and so we continue to work with them to modify 0:14:21.920 --> 0:14:26.400 those for those situations where that would ultimately make sense. UM. 0:14:26.400 --> 0:14:31.440 But we're optimistic that the CDC, along with UM, the 0:14:31.480 --> 0:14:37.640 Biden administration, and the various cabinet members and their staff 0:14:37.680 --> 0:14:42.000 that have responsibility for servicing the public health and and 0:14:42.040 --> 0:14:46.680 making sure the economy is strong UH, that that collectively, UM, 0:14:46.760 --> 0:14:49.600 they'll weigh in and make the right decisions, and and 0:14:49.640 --> 0:14:53.160 we've made some meaningful progress. Our objective would be that 0:14:53.320 --> 0:14:56.200 we would be treated the same as other sectors in 0:14:56.280 --> 0:14:58.880 travel and leisure. What's the message that you have for 0:14:58.960 --> 0:15:01.640 somebody watching or listening right now who still may be 0:15:01.720 --> 0:15:04.160 uneasy about getting back on a ship in this environment. 0:15:05.640 --> 0:15:08.720 I'm sorry to faded out. Could you repeat, just was 0:15:08.720 --> 0:15:10.680 wondering the message that you would have for somebody who's 0:15:10.720 --> 0:15:13.720 listening right now, we're watching right now, if they're potentially 0:15:13.760 --> 0:15:16.240 uneasy about getting back on a ship in this environment. 0:15:16.240 --> 0:15:18.440 I'm thinking about our own Charlie Pellett, who has gone 0:15:18.480 --> 0:15:21.200 on a lot of carnival cruises, loves to go cruising 0:15:21.200 --> 0:15:23.440 and can't wait to get back out there. What's the 0:15:23.520 --> 0:15:26.240 message that you would, you know, give to somebody who's 0:15:26.280 --> 0:15:28.480 looking at the industry, maybe a little hesitant and wanting 0:15:28.520 --> 0:15:30.080 to get on a ship. What would be the message 0:15:30.080 --> 0:15:32.560 you would say to them? Oh, the message is simple, 0:15:33.320 --> 0:15:38.360 come aboard, you know, get vaccinated please. But if you're vaccinated, 0:15:38.920 --> 0:15:42.720 come aboard and um and enjoy yourself. You're gonna have 0:15:43.160 --> 0:15:46.160 a safe cruise and you're gonna have a great time. Hey, 0:15:46.200 --> 0:15:49.120 you know those recurring cruisers, I know, like a Charlie 0:15:49.160 --> 0:15:52.040 Pellett who works here at Bloomberg, they give you, guys 0:15:52.120 --> 0:15:55.280 a great um window into future cruises. Talk to us 0:15:55.280 --> 0:15:56.960 a little bit about that, because I know there's millions 0:15:57.000 --> 0:16:00.400 of them out there right that take a cruise come back. 0:16:00.440 --> 0:16:02.320 I remember being on your ship and sitting in there, 0:16:02.480 --> 0:16:04.360 you know, in an elevator and people saying it was 0:16:04.400 --> 0:16:07.920 my fifth cruise, my six cruise. But it gives you, right, 0:16:08.160 --> 0:16:11.320 some visibility in terms of where you're going. What are 0:16:11.360 --> 0:16:14.040 you seeing on that front? Oh, in terms of the 0:16:14.160 --> 0:16:16.560 future you mean for the industry, yeah, or and for 0:16:16.600 --> 0:16:20.160 you specifically, Yeah. Yeah. The future for us and for 0:16:20.280 --> 0:16:25.160 the industry is super bright. Keep in mind, prior to COVID, 0:16:25.840 --> 0:16:29.280 about a half a billion people a year took holidays 0:16:29.360 --> 0:16:32.880 or vacations around the world. We were sailing as an industry, 0:16:33.280 --> 0:16:35.640 thirty million people a year. We sailed a little with 0:16:35.720 --> 0:16:39.480 thirteen you know, across our nine world leading cruise line brands, 0:16:40.000 --> 0:16:42.320 and um, when you think about it that way, you 0:16:42.400 --> 0:16:46.880 realize what the opportunity is, where the best vacation value 0:16:46.960 --> 0:16:50.000 there is, with the best vacation experience there is, And 0:16:50.080 --> 0:16:53.560 so we have nothing but upside. We were on a 0:16:53.600 --> 0:16:56.760 great role as an industry prior to COVID. We were growing. 0:16:57.280 --> 0:17:00.760 Things were great, great returns for the shareholders, great experiences 0:17:00.800 --> 0:17:03.560 for the guests. And we'll be back to that. You know, 0:17:03.640 --> 0:17:06.320 we'll we'll have to stagger the ships in but by 0:17:06.640 --> 0:17:09.879 spring next year or later, assuming the trajectory for the 0:17:09.880 --> 0:17:14.680 pandemic continues the way it's going, we'll we'll be back 0:17:14.680 --> 0:17:18.040 to where we were, um, exciting people and then tie 0:17:18.040 --> 0:17:20.919 you seem more and more people to the great experience 0:17:20.920 --> 0:17:25.240 that accruises. So I have to say our audience, financial audience, 0:17:25.280 --> 0:17:27.600 and folks on the terminal sending me message and they're 0:17:27.640 --> 0:17:30.320 like okay, So ask Arnold. You know we're hearing it. 0:17:30.359 --> 0:17:33.920 He's very optimistic. It's positive to see another U S 0:17:33.920 --> 0:17:35.720 ship or another ship out of a U S port. 0:17:36.080 --> 0:17:38.920 You did though guide for positive even up by the 0:17:38.960 --> 0:17:42.159 summer of two, provided the full fleet is up and 0:17:42.200 --> 0:17:46.240 running right and we're back to those more normal occupancy levels. Um, 0:17:46.280 --> 0:17:48.119 do those and I know earnings are coming up, so 0:17:48.200 --> 0:17:50.680 you tell me what you can tell me. Do those assumptions. 0:17:50.680 --> 0:17:55.120 Though Arnold still hold, I would say that clearly where 0:17:55.119 --> 0:17:59.440 we're at now it's maximizing cast generation. We have fourteen 0:17:59.560 --> 0:18:03.680 trans actions UM during the during the pause, and now 0:18:03.680 --> 0:18:07.439 a fifteenth as we refinanced one of those, and to 0:18:07.560 --> 0:18:10.520 raise twenty three point six billion dollars, a lot of 0:18:10.560 --> 0:18:15.720 it in debt, either senior or secondary. But the bottom 0:18:15.760 --> 0:18:19.360 line is, UM, we want to accelerate repaying that debt. 0:18:19.560 --> 0:18:22.040 We want to return to the credit ratings that we had, 0:18:22.160 --> 0:18:25.600 the strong credit ratings that we had pre COVID, and 0:18:25.640 --> 0:18:29.200 in doing so will create great value for the shareholders. 0:18:29.240 --> 0:18:31.399 And the way for us to do that is to 0:18:31.480 --> 0:18:34.840 be sailing again generating cash. We have a more efficient fleet. 0:18:35.359 --> 0:18:39.080 We eliminated nineteen of our least efficient vessels. We have 0:18:39.160 --> 0:18:42.320 new vessels coming in that are far more efficient, a 0:18:42.400 --> 0:18:46.600 strong environment with robust demand, and uh, it's just gonna 0:18:46.800 --> 0:18:50.359 it looks very positive going forward, so positive enough that 0:18:50.520 --> 0:18:52.639 if you can get back to triple B territory on 0:18:52.680 --> 0:18:56.760 your debt anytime soon, I think anytime soon. It's gonna 0:18:56.800 --> 0:18:59.560 take us a few years to get back to the 0:18:59.680 --> 0:19:04.159 very high credit ready that that we had before. Um, 0:19:04.200 --> 0:19:07.199 but but we're gonna we should be able to do that, 0:19:07.280 --> 0:19:10.680 assuming you know that the trajectory stays with the pandemic 0:19:10.760 --> 0:19:13.760 and and things continue the role. I'm interested to hear 0:19:13.800 --> 0:19:16.520 about how you get that next generation of cruisers to 0:19:16.520 --> 0:19:20.520 be Never I've never been on a cruise. For example, 0:19:20.600 --> 0:19:23.520 I would be somebody who you would want to reach, right, 0:19:23.560 --> 0:19:25.840 I have a young family. How do you get us 0:19:26.160 --> 0:19:29.440 to become that next generation of cruisers? Well, first of all, 0:19:30.080 --> 0:19:33.120 you know, we sell a lot of millennials now, so 0:19:33.359 --> 0:19:38.080 the cruises by definition multigeneration, and so so many people 0:19:38.440 --> 0:19:41.920 have all ages have cruise. We sell more children, for example, 0:19:42.320 --> 0:19:45.680 on our Carnival brand than any other line in the orld, 0:19:46.200 --> 0:19:50.800 and so we we have multigenerational experience already. The second 0:19:50.840 --> 0:19:55.520 thing is that especially for millennials, Uh, they love experiences. 0:19:55.600 --> 0:20:00.000 Everybody does, but but they are even more predispision predisposition 0:20:00.240 --> 0:20:03.960 for that than others. And so that's what cruises and 0:20:04.040 --> 0:20:08.000 all of our data shows that crews really resonates with 0:20:08.080 --> 0:20:10.840 that generation. So for you, tim, we just gotta have 0:20:10.960 --> 0:20:14.480 you experienced it once and you'll be hooked. Like the 0:20:15.080 --> 0:20:17.760 young man who told me on this ship the other 0:20:17.880 --> 0:20:22.240 day that he had two thousand days of cruising with 0:20:22.280 --> 0:20:26.440 the Corner brand. Talk about recurring, I've been pushing him 0:20:26.440 --> 0:20:28.640 out to the water. I'm just gonna tell you, Arnold. Hey, 0:20:28.720 --> 0:20:31.080 last question, um, the events of the past year, how 0:20:31.160 --> 0:20:34.919 is it reshaped your long term approach to the company 0:20:34.920 --> 0:20:38.640 in the industry? I'm sorry, could you repeat, I'm getting 0:20:38.640 --> 0:20:42.200 a little feedback. My our apologies are, how have the 0:20:42.240 --> 0:20:44.320 events of the past year kind of reshaped your long 0:20:44.400 --> 0:20:47.840 term approach to the company and specifically the cruise industry 0:20:48.000 --> 0:20:50.760 and just kind I think our long term approaches the same. 0:20:50.840 --> 0:20:56.320 First of all, our highest responsibility and therefore our top 0:20:56.359 --> 0:21:01.960 priority always always it's compliance, environ mental protection and the health, 0:21:02.000 --> 0:21:05.680 safety and well being of our guests, of the people 0:21:05.680 --> 0:21:08.600 in the communities we touch and serve, and then of 0:21:08.680 --> 0:21:13.120 our shipboard and short side personnel. So that is our 0:21:13.200 --> 0:21:16.280 foundation that gives us the freedom to operate, and that 0:21:16.480 --> 0:21:19.080 is at our core what we have to do exceedingly 0:21:19.119 --> 0:21:22.920 well to put us in position to see guests expectations 0:21:23.359 --> 0:21:26.680 and generate great returns for shareholders. Arnold, thank you so much. 0:21:26.800 --> 0:21:31.600 Arnold Donald, chief executive officer at Carnival Corporation, joining us 0:21:31.640 --> 0:21:35.800 from their headquarters in Miami. This is Bloomberg Business Week 0:21:36.000 --> 0:21:39.919 with Carol Messer and Bloomberg Quick Takes Tim Stinovic on 0:21:40.080 --> 0:21:43.960 Bloomberg Radio. It's about China's favorite fiery liquor. It is 0:21:43.960 --> 0:21:46.560 getting a millennial makeover. And I gotta just tell you 0:21:46.600 --> 0:21:48.760 the backstories that we've been having around our table here 0:21:48.760 --> 0:21:51.440 in the studio. Yeah, we should have been broadcasting during 0:21:51.480 --> 0:21:53.680 the break. I'm kind of glad that it for examples. 0:21:54.320 --> 0:21:56.800 So joining us now is Joel Weber, Editor at Bloomberg 0:21:56.840 --> 0:21:59.760 Business Week. He's in the Bloomberg Interactive Broker studio as 0:21:59.760 --> 0:22:04.040 is mlis Assistant Managing editor at Bloomberg A Business Week Joel, 0:22:04.960 --> 0:22:09.000 what you have had this liquor? Buys you? Buys you? Yeah, 0:22:09.320 --> 0:22:11.160 how is it? What does it taste like? Um? Well, 0:22:11.200 --> 0:22:12.960 I can rewind the clock a little bit. And I 0:22:13.800 --> 0:22:17.480 was in Beijing for the New Economy Forum a couple 0:22:17.520 --> 0:22:21.480 of years ago in the Before Times and the we 0:22:21.560 --> 0:22:24.520 have a great colleague there, John lou who. Um. You know. 0:22:24.560 --> 0:22:26.679 One interesting thing about going to China is that you know, 0:22:26.960 --> 0:22:30.520 it's actually kind of difficult to interact and do comrace 0:22:30.600 --> 0:22:33.399 because you know, I'm I'm a gringo. My cash doesn't 0:22:33.400 --> 0:22:35.720 work there. I don't have the apps that they use, 0:22:35.840 --> 0:22:39.560 so you're sort of locked out. The great joy of 0:22:39.600 --> 0:22:41.439 that is that your colleagues basically have to take you 0:22:41.440 --> 0:22:44.680 everywhere and feed you. Um. So we had this great 0:22:44.680 --> 0:22:48.000 dinner um and John was like, you got a little 0:22:48.000 --> 0:22:49.520 bit more wind than you and I was like, yeah, 0:22:49.520 --> 0:22:50.880