Carnival CEO Discusses Mandated Vaccines

then I kind of woke up this morning. I had to certainly tweak them. Uh. Tell me about the CDC now possibly offering to or allowing ships to be out and running by midsummer. What's changed with the CDC and what are the restrictions that are going to have to happen in order for that to actually come to come to fruition. What you might recall, Carol, the CDC, I think last October issued a conditional sale order and they

came out and phases. The first phase was bringing ships back in the US waters and its primarily with minimal crew on board. We've finished that phase of it. In terms of Heaven and ourselves. Thirty ships that are currently in green status. They issued UM on April two, UM the next phase UH, and frankly, what has been issued UM doesn't give us a specific time and to be able to return UM UH and also was really not

workable in the current form. But again it just came out and we have an opportunity to discuss with the CDC any administration UM to make certain that we do have something that's workable and hopefully that would allow us

to be able to seal in July. And we're hoping it will be something that's more in line with the advancements of vaccines that's occurred in the rapid advancement of the vaccines that amonistration has been so successful with, as well as the advancement and treatments and investments and rapid testing, none of which existed when the original conditional Sale Order truth.

So we're hopeful that we'll be able to meet with the administration and CDC and and come up with something as practical and will allow people to return to their choice of vacation travel and get a whole lot of Americans back to work. As you know, Carol, but half million people impacted in the US in terms of jobs associated with the cruise industry outside of the cruise companies themselves. No, it affects a lot of other jobs and other industries

connected with the cruise U cruise industry. Hey, one thing I gotta ask you, Arnold, is how much of Carnival threatening to relocate their ships to other markets outside the United States? Do you think was the reason for the CDC change, Because it was just a few days ago that they came out, you know, and we're still kind of holding firm what happened. What were the conversations that maybe you, you and other members of the cruise line industry had with the CDC. There was no threat or anything.

It's just a practical reality that if we're not able to seal from the US um and and some months soon we would have to sail from elsewhere. And so some of the ships what homeporting, and a number of companies have already announced homeboarding ships that normally would have been sailing out of the US homeporting from different places in the Caribbean. But it's not a threat or anything. It's just a natural outcome of not being able to sail um you know, from the U S I'm not

sure anything has changed, perhaps it has. I haven't heard directly from the CDC or the administration anything has changed. I think that they genuinely believe the uh information they put out might allow some limited sailing as early as July uh and so we'll have to discuss that with them. In our timeline son't quite match up with that, but maybe we don't understand everything. So the CDC has a

job to do. They're trying to do their job. I think as long as we work together with the CDC and the administration, we can all get crews, you know, back soon, and we can get it back and safe with the interests of public health, and we can have all those half a million workers no longer suffer from not being able um to earn a wage and and and do their jobs in the ports and the various travel agents and all the other things that are connected to two crews well, or does it feel like that

there's a more constructive conversation with the CDC right now? And I asked that because I do also wonder is there kind of a last straw for you that if the CDC in a couple of months isn't clear about what it will take to get ships uh U s homeported ships, you know, up and running. Is there a point where you're gonna say, okay, I'm done and we're going to move ships abroad. UM, As you know, we have nine brands Carrel, so about fifty nine of our

nineties ships are not under the conditional sale order. They don't you know, sail in the US anyway. And so there we are already active and sailing, and we've announced sailings and in the UK we've announce sailings. In Greece, UM IIDA, our German brands already sailing from the Canary Islands, all on a limited basis at this point, but it is movement in the direction and UM we're optimistic that we'll be able to do the same here and continue to dialogue with the CDC. I think when the big

issues here is UM the relative mentality around risk. So today you can, UM, you could border plane, fly to a country, get on a cruise ship and sale fly back from that country and come back to the United States. You have to do certain testing exerta, but you can do that. And today, even if vaccinated, you can't get on a cruise ship in the US. And that's whether you've vaccinated or not in terms of what you could do outside you know, from the US going somewhere else

to get on a cruise ship. So and if you look out of the travel and entertainment sectors you talked about spring breakdown in Miami, um, or you look at arenas where people are starting to be able to attend sporting events, restaurants, hotels, resourts, air travel. Uh. You know, there's a level of risk management and mitigation, and so we would like to just be treated similarly to the

rest of the travel and tourism sector. Um. And we also obviously have enhanced protocols already in place versus many of those sectors. Well, does it not make extraining, medical sent on board, etcetera. Forgive me for interrupting, but does it not make sense to you, Arnold um that on for planes, you know, people get on a plane and they're sitting right next to each other. Um. There seems to be kind of different requirements for people in different

parts of the tourism industry. And yet you folks are still waiting, you know, to be able to get up and running. Does it seem is this disparate treatment fair in your view? I think again? I think everyone is trying to do what they think is best for public health, and I think, um, together we can work and find a way forward. It's true you get on the plane. Some people say, well, you only a plane for a few hours, but you are sitting right next to someone.

Before you got on the plane, you are an airport terminal. Before you're on an airport terminal, you're in some kind of trying inspitation. Before that, you came from somewhere. When you land, you go to another airport terminal, and then you get in an automobile or bus or whatever. You get onto transport, and then you go places. You might go to a restaurant, you might stay in a hotel, you may go to a resort, and and all of that activity. And a cruise is a city at sea.

And so to comparis just to an airplane ride is inappropriate. And to comparis UM just to a hotel stay is inappropriate. Uh. And so I think the reality is look at the evidence.

There's over four hundred thousand people that have sailed UM to date in Europe, a fewer than fifty cases of COVID, all handles seamlessly without disruption problem outbreaks nothing because I know you've got what sailing in your two of your brands, and I think six of you, yeah, less than less than fifty cases out of an estimated for a hundred thousand folks, and each of us handled seamlessly because arrangements you know, were pre and age with reporting people's travel

weren't disrupted because now there's a lot more understanding that all happened before vaccines, and so now we have the vaccines, which are another layer and a major layer, and we would encourage everyone to get vaccinated. I mean, that's that's what we will encourage people to do because it is one of the best levels of protection against any serious effects from COVID that that you can have. And that's what the science says, and will continue to be informed

by the science by global medical experts. But we will respect whatever the rules are wherever we go, as we always do, we have to be in compliance. What do you think about making it mandatory for vaccines for passengers as well as for crew members. You and I have talked about this before. So far you guys have said no. I know you said you highly recommend them, but what about making them undatory? Norwegian is doing it. What's your take here, Well, first of all, we encourage the reality

today is um, vaccines are not accessible to everyone. Um, young people show then you know today, Um, it's not vaccines are not recommended for children. Uh. And so there's gaps in the vaccine protocol today, their tests under way. Maybe in a few months, you know, it'll be fine to vaccinate children. Maybe in a few months there will be plenty of vaccine available for everyone. Everyone is hoping

for that, everyone's assuming that. And if that comes to past, we would encourage everyone to be vaccinated, whether we mandate or not. We have to find, you know, in some places that illegal demand, date, etcetera. I understand personal choice and personal liberty, will respect all of that, and so we'll follow what the regulations are wherever it is. And but we too want to stand and do the thing

that's in the best enteress of public health. However, vaccines are not mandated for other forms of travel and tourism, etcetera. Then we're not sure, um, that it makes sense to mandate them, you know, for cruise either. But again we'll comply, but we think you know, fair and level treatment, serving the best entrance of public health is what we should

be about today. We just want to continue to discuss with CDC and the administration and find a way forward where hopefully we can be sailing again this summer here in the US. What's going to change on the boat if I get on a ship. I've been on one of your ships, are Charlie Pellett has been on many of your ships? Um? What's it gonna be like when it comes to the buffet. Is it going to be temperature chips, checks, um a lot? What will you guys do?

What will be different? Well, it depends so right now with the sailing as we've passed so far, we've had universal testing, we've had physical distancing, we've had mask wearing, we've had additional medical screens. We of course have enhanced sanitation and asked hair handling stuff on the ships. So

all of that is present and it's worked well. Um, going forward with vaccines, we'll have to see what makes the most sense and protocols, whether all that layering on top of vaccines makes sense, whether it could be for example, as it was announced by CDC with regards to uh ring one vaccine and the group and you may not need to wear the mask if everyone's vaccinate vaccinated you know it's frequently in so on. So we'll figure all that out and and and that will evolve the coming weeks.

How we'll figure it out, will listen to the medical experts and the GOLO and the scientists from around well and what the best practices and and the best in its public health. And of course we will follow whatever the rules are wherever we go. Will it be so could it be very different what the rules are in the US versus over in Europe or will there be

consistent rules for all of your ships? I think for a short period of time there could be some differences, and not just US and Europe, but even within Europe, even UM within the Caribbean. Over time everyone will get to a more probably homogeneous uh kind of thing. But but we are prepared that there could be differences and one local versus another. As everyone you know is dealing with it, you know, the spread is different, and one local versus another, the risk is different, and so be honest,

and it could be some differences. So talk to us about the business update today, Arnold UM, your stock popped on the news and did finish off its ties. But nonetheless definitely caught the attention of investors along with the CDC News Summer of one. I know you gave some of an update on that talked us a little bit

more about what you expect how it plays out here. Well, again, we're optimistic that sometime during the summer twenty one, hopefully in July, will we will be able to begin sailings from the US, but we are already will be sailing from multiple places around the world, again a limited basis.

A few ships that reintroduction is don't to be staggered initially will have relatively low occupancy by design, so our crew gets used to the protocols that have to be in place, as we did in the past few months with the sailings that have already started with Aida and Costa. Uh.

And so that's you know, where where it begins. And and I think over time, a few months time, if things continue the trajectory they are with regards to the global management of this pandemic, then we might be able to see more ships, maybe the entire fleet, and higher octancy ownerships as our crew you know, gets used to managing the new pro new protocols. I am also curious

about right now. Love the experiences, Carol, People love the experiences that we had on um U in the sales we've passed so far when yours the highest net promoter scores, which is running the cases we use for guest satisfaction that we've ever had and so UM so you know, we can give people a great cruise experienced, even with enhanced protocols and um And keep in mind you we've

we've had to deal with things in the past. You know, there's Zebola, Zeka, murder Stars, you know, all these different viruses. We sail global around the world and we've had to deal with things. This one is definitely you know, obviously it shut the whole world down, so it's it's it's a different but we've learned a lot and science has come a long way in the vaccines and everything. So we're in much better shape today than we were months ago. Well, I wanted to ask a little bit more about Europe

UM and Costa. You guys do a big business over there with that brand. Our bookings continuing to tick higher. What are you seeing in terms of trends? Well, as we said on our earning stall today, our business update UM called today in the UK. We announced three brands with sailings in July in the UK, Q and R Piano and Princess UM. In each case UM they had. Princess had its highest single day booking when we announced second highest ever UM and and bookings in a in

a given day. UH Piano you know, had their highest and like seven years UM and qin art Um had its highest UM in many years, in a decade or so. So there's clearly pent up demand UM and people want to cruise a lot of repeat cruises. We've missed out almost on a full year of getting their cruise, and their anxious and crews and and people are anxious just to get out period of course after the lockdowns and everything.

So the demand is strong and robust and we're able to make those analysis in the UK knowing we're gonna sail UM in a way that serves the interests of public health. Similarly, you asked about constant In particularly and aida Um and we we see, you know, good demand.

One of the challenges for Costa and aida is Um, particularly Costa is that mainly you're sailing around it's Italians today, sailing around Italy, around Italian ports and and so uh, you know, that's not the most desirable itineraries for the mass of kind of Europeans, but it's still a great itinerary and people are enjoying it. And in terms of you know, as we've seen, um, the vaccines becoming much

more widespread here in the United States. I know you gave an update in terms of bookings in the US. What's been that uptick? Have you seen kind of a direct correlation Arnold, as more and more people are getting

vaccines at who are signing up? In terms of bookings for for trips on your ships, you know, you know, our bookings have been robust throughout UM we look into twenty two, UM, second half of twenty two and into twenty three, even the first half of twenty two were well ahead and the upbrand of the range of historical ranges foot bookings at this point in time, and and and with strong pricing still a fantastic value for people relativity equivalent land based vacation, but pricing has been good

and so um we haven't seen any enhancement to that because of vaccines or anything. But it was pretty strong to begin with and it has continued to be strong and vaccine passports. I think you and I've talked about this, not something that you do. You think it's a good idea. Look, I think, UM, you know the personal liberty issues and all that I leave to UM people with a higher pay grade than I do I have, but I would say that I think, you know, people getting the vaccine

is important. UM. I would encourage everyone to get a vaccine, and that I would absolutely say it's important, UM. In terms of the personal rights and disclosure issues. You know, we've all travel what we had to show we had a particularly amunization and or a country and that sort of thing, and so we'll see how all that plays out. But the world will come together on that and make a decision UM, and we'll take advantage of that. Whatever they decide, will comply and and make sure our guests

are honoring that if we take them anywhere. But I think the more important thing, the most important thing is that people do get vaccinated. UM. If they have access, they should, they should get the vaccination. And I would encourage them to do that because it is the one too in the two kit that can really mitigate the risk for you having a serious effect if you do come in contact with COVID. Hey just got about a minute or so left. UM, I'd be remiss if I don't.

And I often do ask you about leadership. Um, there's a lot going on across the country in terms of George. I think about voting rights and CEO is being asked to step up. What's your position on this and what do you think CEOs in that state need to be doing. Look, as the CEO of Carnival, UM, my priority has to be safely returning my fleet to full guest operations in

a way that serves interests of public health. As a black person who grew up in the segregated South during the civil rights UM sixties, I am deeply aware and and although I can never fully appreciate, I am deeply aware of the incredible sacrifice is suffered by so many black and white and brown and more to ensure the opportunity for me to vote UM, and that I now

enjoy as an American. I feel a personal responsibility to honor those sacrifices and never stand silent if I see that the most basic of rights in our democracy, the right to vote, is being denied to our suppressed fathers. And so you know, I did sign um uh, the notice and the and the call for action for as an individual. I signed it as a citizen, as an American,

I signed it um and as a black person. And I believe in it because I think, you know, there's no more fundamental right in democracy than the right to vote. And people have given their lives for the right to vote for all of us, and I think it's really important we stand up forgive me, I've got to wrap UM, but I'm so glad we were able to talk to you about that. And thank you for putting up with my home setup. It's just kind of the world we're living in. UM, Thank you so much, really appreciate it.

Arnold Donald. He's the CEO of Carnival Corporation.