Carnival crusing to the bank


FEMA's deal immediately after Katrina with Carnival Cruise Lines drawing criticism
I saw this article yesterday, some of you might have seen something similar. I spend some time on the web yesterday digging up information on Carnival Cruise Lines and trying to get some details on the bid. I wasn't going to jump on this one without confirmation, like I did with the refugee camps.

Then it hit me. The money might not be so far out of line after all.

Those ships were booked. No one makes money on an empty ship. It wasn't just a matter of replacing existing business, Carnival would have to pay penalties to break contracts. First and foremost would be the tickets already sold for that time. All those would have to be refunded or rescheduled. Any passengers in transit would have to have their hotels paid and their transportation back home. And you know how expensive it is to book a plane at the last minute.

Then there would be costs from suppliers. Who knows how much loss Carnival would have to accept to maintain their relationships with everyone from airlines to produce suppliers to ports or who knows what else?

All of the sudden that cost didn't look so high after all.

This wasn't "business as normal." This was "we'll pay you for the exclusive use of your ships if you drop everything immediately." Meaning you can't take business from anyone else. Meaning you might have to pay your crews hazard pay.

The price still looks a little high, but at least it is in the same ballpark as what was actually charged.

— NeoWayland

Posted: Thu - September 29, 2005 at 05:11 AM  Tag


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