1 00:00:00,160 --> 00:00:02,759 Speaker 1: Shares of Carnival Corporation. They are the seventh best performer 2 00:00:02,800 --> 00:00:04,360 Speaker 1: in the S and P five hundred to one hundred 3 00:00:04,360 --> 00:00:06,360 Speaker 1: and thirty two percent year to date, and we were 4 00:00:06,360 --> 00:00:09,960 Speaker 1: delighted to have with us on this Friday, Carnival's Josh Weinstein, 5 00:00:10,000 --> 00:00:12,680 Speaker 1: he's president's CEO and chief Climate Officer, joining us here 6 00:00:12,800 --> 00:00:15,840 Speaker 1: on set in New York in town. Welcome, Welcome, welcome, 7 00:00:15,880 --> 00:00:17,119 Speaker 1: almost happy new year. 8 00:00:17,280 --> 00:00:19,240 Speaker 2: Happy new day, everybody, Thanks for having me. 9 00:00:19,280 --> 00:00:20,840 Speaker 1: How are you thinking about the year? I mean, you 10 00:00:20,840 --> 00:00:22,119 Speaker 1: guys have had a great one in terms of a 11 00:00:22,160 --> 00:00:24,159 Speaker 1: stock run. You're working on a lot of things, in 12 00:00:24,239 --> 00:00:26,799 Speaker 1: terms of pairing down debt talked to us, you just 13 00:00:26,840 --> 00:00:30,280 Speaker 1: reported earnings last week. Some pricing power talked to us 14 00:00:30,320 --> 00:00:32,400 Speaker 1: about the kind of the business environment. 15 00:00:32,600 --> 00:00:35,159 Speaker 2: Yeah. So the twenty twenty three you know, we wrapped 16 00:00:35,159 --> 00:00:38,680 Speaker 2: in November on November thirtieth, and you know, the one 17 00:00:38,720 --> 00:00:40,680 Speaker 2: word that we like to use as a as a 18 00:00:40,680 --> 00:00:45,360 Speaker 2: summary is record. We had record demand, record yields, record pricing, 19 00:00:45,680 --> 00:00:49,559 Speaker 2: record bookings, forward bookings, record on board spending level. So 20 00:00:49,720 --> 00:00:53,360 Speaker 2: really across the board, our business has really thrived in 21 00:00:53,400 --> 00:00:55,840 Speaker 2: twenty twenty three, and we expect much more in twenty 22 00:00:55,880 --> 00:00:56,320 Speaker 2: twenty four. 23 00:00:56,440 --> 00:00:58,400 Speaker 1: It could continue because you're such a great gauge of 24 00:00:58,440 --> 00:01:01,280 Speaker 1: how customers are feeling. You know, you have several brands, 25 00:01:01,520 --> 00:01:04,760 Speaker 1: but you really kind of speak to, you know, the 26 00:01:04,840 --> 00:01:08,039 Speaker 1: everyday US consumer, if you will, and you just have 27 00:01:08,040 --> 00:01:10,480 Speaker 1: a great read on it. Are they continuing to spend? 28 00:01:10,600 --> 00:01:12,759 Speaker 1: Are they continue to do advance bookings and then once 29 00:01:12,760 --> 00:01:15,199 Speaker 1: they're on their ships, Josh, continuing to spend as well? 30 00:01:15,440 --> 00:01:17,480 Speaker 2: Yeah, that is exactly what we see. You know. As 31 00:01:17,520 --> 00:01:21,399 Speaker 2: a matter of fact, our Q four was from a 32 00:01:21,440 --> 00:01:25,120 Speaker 2: pricing standpoint, the highest all year. So it's accelerating, it's 33 00:01:25,120 --> 00:01:28,280 Speaker 2: not decelerating. And when we look when we look forward, 34 00:01:28,319 --> 00:01:31,240 Speaker 2: we're actually two thirds booked for all of twenty twenty 35 00:01:31,280 --> 00:01:32,240 Speaker 2: four already. 36 00:01:32,319 --> 00:01:33,200 Speaker 1: It's a nice visibility. 37 00:01:33,240 --> 00:01:36,520 Speaker 2: It's not too bad. We were about ten points higher 38 00:01:36,560 --> 00:01:39,240 Speaker 2: than we were last year. And on top of the 39 00:01:39,760 --> 00:01:43,080 Speaker 2: ticket bookings, we've actually started pulling forward on board spend, 40 00:01:43,319 --> 00:01:45,399 Speaker 2: so we have about a more or less about a 41 00:01:45,480 --> 00:01:48,760 Speaker 2: third of our onboard spend being prepaid in advance, So 42 00:01:48,800 --> 00:01:51,720 Speaker 2: we have a really good amount of visibility. And those 43 00:01:51,760 --> 00:01:54,720 Speaker 2: booking trends, they just haven't slowed down, you know, every 44 00:01:54,840 --> 00:02:00,360 Speaker 2: quarter this year. You know, people expected. It's got a down. 45 00:02:00,400 --> 00:02:03,360 Speaker 2: It's got to we're going to see something. The consumer 46 00:02:03,440 --> 00:02:05,040 Speaker 2: is going to get impacted, And the fact is, with 47 00:02:05,160 --> 00:02:08,840 Speaker 2: our business, we haven't seen it. It's record after record. 48 00:02:08,880 --> 00:02:11,360 Speaker 2: As a matter of fact, we just ended the two 49 00:02:11,360 --> 00:02:15,200 Speaker 2: weeks of you know, Cyber Monday and Black Friday at 50 00:02:15,360 --> 00:02:19,080 Speaker 2: more records. And it's not just coming from one brand. 51 00:02:19,120 --> 00:02:21,880 Speaker 2: It's not coming from the United States. It's global. It's 52 00:02:21,880 --> 00:02:25,120 Speaker 2: with our global portfolio of brands, which is really really encouraging. 53 00:02:25,200 --> 00:02:26,720 Speaker 3: Do you think we're moving good morning, good to me. 54 00:02:27,160 --> 00:02:29,600 Speaker 3: Do you think we're moving from many CEOs similar to 55 00:02:29,680 --> 00:02:32,679 Speaker 3: yourself that I sat with that run global airlines and 56 00:02:32,960 --> 00:02:36,080 Speaker 3: global businesses have said, we've lived through a period of 57 00:02:36,080 --> 00:02:38,040 Speaker 3: revenge tourism. We were all locked up for a period 58 00:02:38,080 --> 00:02:41,239 Speaker 3: of time. This is something we had this parabolic reopening 59 00:02:41,400 --> 00:02:44,399 Speaker 3: and you had a parabolic rebooking. Are we evolving into 60 00:02:44,440 --> 00:02:46,440 Speaker 3: some kind of new cycle? You said there's no end 61 00:02:46,440 --> 00:02:50,280 Speaker 3: insight in this demand. So if we've ended revenge tourism, 62 00:02:50,320 --> 00:02:52,720 Speaker 3: how do you describe the next evolution? 63 00:02:53,080 --> 00:02:55,080 Speaker 2: Yeah, that's a great question. So we don't think this 64 00:02:55,160 --> 00:02:57,639 Speaker 2: is revenge anymore. This is not pent up demand. It's 65 00:02:57,639 --> 00:03:00,200 Speaker 2: two years on from when we really got back in 66 00:03:00,360 --> 00:03:03,760 Speaker 2: full as a as a corporation. This is people who 67 00:03:03,760 --> 00:03:07,240 Speaker 2: have decided what's meaningful for them, how do I want 68 00:03:07,280 --> 00:03:10,640 Speaker 2: to spend my life? And experiences are what they're looking for, 69 00:03:10,919 --> 00:03:14,120 Speaker 2: you know, unforgettable memories and creation with friends and family. 70 00:03:14,160 --> 00:03:17,079 Speaker 2: And that's exactly what cruising has to offer. 71 00:03:17,320 --> 00:03:18,840 Speaker 3: And that's why I sat down at the act course 72 00:03:19,080 --> 00:03:21,040 Speaker 3: and he said, look, I haven't got enough hotel rooms 73 00:03:21,080 --> 00:03:23,840 Speaker 3: and I haven't got enough high end staff to help 74 00:03:23,880 --> 00:03:26,679 Speaker 3: me run this business, which then takes me to the 75 00:03:27,360 --> 00:03:30,400 Speaker 3: cruise is the high end hotel. But to what extent 76 00:03:30,440 --> 00:03:35,600 Speaker 3: are those packages off ship and on shore those additional spans, 77 00:03:35,680 --> 00:03:38,440 Speaker 3: Are they critically important to the expansion and the turnaround 78 00:03:38,480 --> 00:03:40,960 Speaker 3: from the loss that you've had. Do they add incrementally 79 00:03:41,360 --> 00:03:42,200 Speaker 3: or significantly? 80 00:03:42,760 --> 00:03:46,320 Speaker 2: So, I mean, when we think about our business, we're 81 00:03:46,360 --> 00:03:48,680 Speaker 2: a little bit different from from when you're looking at 82 00:03:48,720 --> 00:03:50,640 Speaker 2: hotel companies. You know, I'm staying in a hotel in 83 00:03:50,680 --> 00:03:52,280 Speaker 2: New York and I won't tell you which one it is, 84 00:03:52,320 --> 00:03:54,560 Speaker 2: but I'll tell you the service is not very good, 85 00:03:55,440 --> 00:03:58,240 Speaker 2: and we've learned how to live with that. As a society, 86 00:03:58,280 --> 00:04:01,680 Speaker 2: it's almost a tacit acceptance no, we should not, and 87 00:04:01,680 --> 00:04:06,600 Speaker 2: cruise industry, our brands did not deviate from service level. 88 00:04:07,000 --> 00:04:10,240 Speaker 2: Our guests have high expectations and we aim to exceed them. 89 00:04:10,320 --> 00:04:12,600 Speaker 2: We do not close off floors, we do not shut 90 00:04:12,680 --> 00:04:16,160 Speaker 2: areas down, We do not skimp on the services that 91 00:04:16,200 --> 00:04:18,839 Speaker 2: we used to offer. It is full steam ahead and 92 00:04:18,880 --> 00:04:21,080 Speaker 2: that's what people expect and that's what they're willing to 93 00:04:21,080 --> 00:04:22,480 Speaker 2: pay for, and that's what we're seeing. 94 00:04:23,200 --> 00:04:24,839 Speaker 4: And let's talk a little bit about the fact that 95 00:04:24,880 --> 00:04:27,640 Speaker 4: you are a global brand. Of course, a global company 96 00:04:28,320 --> 00:04:30,960 Speaker 4: that goes many places in the world. I don't need 97 00:04:31,000 --> 00:04:34,640 Speaker 4: to tell you that the geopolitical landscape very fraud right 98 00:04:34,680 --> 00:04:37,400 Speaker 4: now too, hot wars and of course conflict in the 99 00:04:37,440 --> 00:04:40,640 Speaker 4: Red Sea. Has that impacted at all where you can go? 100 00:04:40,800 --> 00:04:43,919 Speaker 4: And are you seeing any inflationary pressures from some of 101 00:04:43,920 --> 00:04:44,960 Speaker 4: the things that we're talking. 102 00:04:44,720 --> 00:04:49,280 Speaker 2: About here, So the second question is, no, we haven't 103 00:04:49,279 --> 00:04:52,720 Speaker 2: seen anything of note. Obviously, we pay attention to crude prices, 104 00:04:52,760 --> 00:04:54,760 Speaker 2: which is a good barometer of a lot of things. 105 00:04:55,520 --> 00:04:58,800 Speaker 2: With respect to the impact on our business, we had 106 00:04:58,839 --> 00:05:04,839 Speaker 2: about less than one percent of our business touching Israel 107 00:05:05,080 --> 00:05:07,719 Speaker 2: in one way or another, not necessarily homeporting, but it 108 00:05:07,800 --> 00:05:10,479 Speaker 2: might be one transit stop on a world cruise or 109 00:05:10,520 --> 00:05:13,760 Speaker 2: something of that nature. We made changes some time ago. 110 00:05:13,839 --> 00:05:16,479 Speaker 2: We actually don't have any ships transiting the Red Sea 111 00:05:16,520 --> 00:05:19,920 Speaker 2: area for several months, and so obviously safety first, and 112 00:05:19,960 --> 00:05:22,359 Speaker 2: we will we have mitigation plans should we need to 113 00:05:22,560 --> 00:05:26,080 Speaker 2: adjust where those ships would be transiting, but as of now, 114 00:05:26,480 --> 00:05:29,160 Speaker 2: we're a watch and learn mode. 115 00:05:29,400 --> 00:05:32,440 Speaker 4: Let's also talk about your bond book, because it was 116 00:05:32,520 --> 00:05:35,800 Speaker 4: interesting seeing just last week actually SMP coming out and 117 00:05:36,000 --> 00:05:39,719 Speaker 4: upgrading Carnival not quite back to investment grade territory, but 118 00:05:40,000 --> 00:05:43,320 Speaker 4: you're getting closer, not just higher to not just higher. 119 00:05:43,880 --> 00:05:46,480 Speaker 4: On Earning's day, actually, you think back and the chief 120 00:05:46,480 --> 00:05:50,159 Speaker 4: financial officer of Carnival said that there's a real possibility 121 00:05:50,160 --> 00:05:52,880 Speaker 4: that Carnival will come back to the debt markets in 122 00:05:52,960 --> 00:05:55,359 Speaker 4: twenty twenty four. Where is your current thinking on that 123 00:05:55,400 --> 00:05:57,839 Speaker 4: and what would actually bring you back to the debt market. 124 00:05:58,080 --> 00:05:59,640 Speaker 2: Well, really, the only thing that would bring us back 125 00:05:59,680 --> 00:06:01,719 Speaker 2: to the market, as far as we can see, is 126 00:06:01,760 --> 00:06:05,200 Speaker 2: if there's opportunity to refinance on more favorable terms. 127 00:06:05,360 --> 00:06:06,159 Speaker 1: The lower rates. 128 00:06:06,320 --> 00:06:09,200 Speaker 2: Yeah, lower rates. We're not or managing our maturities, but 129 00:06:09,240 --> 00:06:11,359 Speaker 2: we're not looking to lever up. As a matter of fact, 130 00:06:11,560 --> 00:06:13,920 Speaker 2: as you said in the intro, we've managed to cut 131 00:06:13,960 --> 00:06:16,560 Speaker 2: down our debt load by about five billion dollars so far, 132 00:06:17,640 --> 00:06:21,040 Speaker 2: and we expect much more of that as we go forward. 133 00:06:21,160 --> 00:06:23,240 Speaker 2: You know, that's probity one, two and three when it 134 00:06:23,240 --> 00:06:25,479 Speaker 2: comes to our capital structure d lever. 135 00:06:26,440 --> 00:06:28,240 Speaker 1: So hey, you know one of the things, and it 136 00:06:28,320 --> 00:06:30,960 Speaker 1: kind of ties together geopolitical but also kind of you know, 137 00:06:31,000 --> 00:06:33,800 Speaker 1: we're thinking about growth. So a story. I think it 138 00:06:33,839 --> 00:06:35,479 Speaker 1: was today or in the last twenty four hours that 139 00:06:35,560 --> 00:06:39,520 Speaker 1: the first domestically built ship in China getting ready to 140 00:06:40,080 --> 00:06:42,000 Speaker 1: hit the high seas. But it's a joint venture. It's 141 00:06:42,080 --> 00:06:44,600 Speaker 1: you guys are involved in this, and I think about 142 00:06:45,440 --> 00:06:48,760 Speaker 1: how important China is for you guys, but also geopolitically, 143 00:06:49,120 --> 00:06:52,640 Speaker 1: concerns about China, It's ambitions with Taiwan and whether or 144 00:06:52,680 --> 00:06:54,440 Speaker 1: not there's going to be some problems there down the road. 145 00:06:54,520 --> 00:06:58,760 Speaker 2: Sure. Well, we're very happy for the folks at the 146 00:06:58,839 --> 00:07:02,159 Speaker 2: China JV. We actually unwound the JV earlier this year. 147 00:07:02,240 --> 00:07:02,560 Speaker 4: We did. 148 00:07:02,720 --> 00:07:06,279 Speaker 2: We did so we've been providing ship building expertise support 149 00:07:06,640 --> 00:07:08,240 Speaker 2: for them and we were very happy to do that. 150 00:07:08,279 --> 00:07:10,200 Speaker 1: Where our story so it says you guys are involved 151 00:07:10,240 --> 00:07:10,720 Speaker 1: but go ahead. 152 00:07:10,760 --> 00:07:13,640 Speaker 2: Well, that could be how we're involved at this point, 153 00:07:13,640 --> 00:07:16,480 Speaker 2: but from our perspective, we got a portfolio of world 154 00:07:16,480 --> 00:07:19,360 Speaker 2: class brands all over the world and that's where our 155 00:07:19,360 --> 00:07:23,480 Speaker 2: focus is. You know, it's great for the cruise industry 156 00:07:23,840 --> 00:07:25,880 Speaker 2: that China has opened up, and it will be opening 157 00:07:25,960 --> 00:07:28,480 Speaker 2: up for international cruise companies. We're not going to be 158 00:07:28,520 --> 00:07:31,680 Speaker 2: one of them that's going back in. We've got our 159 00:07:31,720 --> 00:07:35,600 Speaker 2: assets where we want them. We've we've changed our assets strategy, 160 00:07:35,600 --> 00:07:39,400 Speaker 2: We've moved ships to different brands to accommodate the change 161 00:07:39,440 --> 00:07:42,360 Speaker 2: in China, and they're doing very very well. So we'll uh, 162 00:07:42,640 --> 00:07:44,600 Speaker 2: we'll take a wait and see approach on that as well. 163 00:07:44,640 --> 00:07:46,120 Speaker 1: But not a market you need to be in right now. 164 00:07:46,160 --> 00:07:47,520 Speaker 2: Just no, it's definitely not all right. 165 00:07:47,720 --> 00:07:49,760 Speaker 1: Going to leave it there, listen, so appreciate it. You 166 00:07:49,840 --> 00:07:51,600 Speaker 1: know you're spending some time with family. But great to 167 00:07:51,640 --> 00:07:51,920 Speaker 1: get you. 168 00:07:52,080 --> 00:07:53,760 Speaker 2: You're my pleasure, thanks and happening to here. 169 00:07:53,840 --> 00:07:57,800 Speaker 3: Yeah, the New York hotel set, you should get an upgrade. 170 00:07:58,280 --> 00:08:00,960 Speaker 1: Same experience in some hotels, I don't think they have 171 00:08:01,000 --> 00:08:01,520 Speaker 1: the workers. 172 00:08:01,640 --> 00:08:04,240 Speaker 2: They do not have an assable the workership you need. 173 00:08:04,400 --> 00:08:06,200 Speaker 2: We do have all the workers that we need. And 174 00:08:06,240 --> 00:08:08,720 Speaker 2: I'd encourage everybody come come book a cruise before we 175 00:08:08,800 --> 00:08:11,080 Speaker 2: run out of inventory for twenty twenty four, because it's 176 00:08:11,160 --> 00:08:12,040 Speaker 2: going pretty fast. 177 00:08:12,360 --> 00:08:14,920 Speaker 1: Josh Weinstein, the Presidency of Carnival, Thank you so much, 178 00:08:14,920 --> 00:08:15,560 Speaker 1: So appreciate it. 179 00:08:15,600 --> 00:08:16,080 Speaker 2: Appreciate it.