As a result of recent events affecting public perception, Carnival Cruise Lines has decided to invest as much as $300 million USD to upgrade its ships, which includes a second generator for each vessel.
Due to the nature of instant news and 24 hour coverage of events, every negative incident is magnified these days many times over. Despite the mega size of the Carnival Corporation infrastructure, clearly they have learned from the Carnival Triumph incident, whereby the ship was stranded in the Gulf of Mexico for 8 days. Mainstream news media transmitted videos and images of the desperate ship with its Guests lacking basic conditions such as running water and air conditioning.
The Triumph saga was followed by 3 other ships that were also stranded at sea with no power due to a disabled generator. Subsequently, Carnival Cruises is wisely investing in the installation of a second emergency generator for all ships within its fleet, which will restore all power on board in the event the primary generator malfunctions and shuts down. The Carnival Triumph has in fact already implemented a second emergency generator in addition to a number of improvements.
In summary, the Carnival Corporation which owns the leading group of 10 Cruise Lines within the industry, dominates Cruise market share with an approximate 50% stake. An analysis has been conducted for more than 100 ships within the groups fleet and improvements are expected to occur as from now until 2015. All this shapes part of a huge effort to regain public trust and enable the Carnival Corp share price to sail back into positive territory.
