Carnival Corp’s Change in Focus Brings In Profits, But What Does It Mean For Seabourn?

Carnival Corporation, Seabourn Cruise Line’s parent, under the guidance of its relatively new president, Josh Weinstein, is now turning a quarterly profit and is exceeding its forecasts. That is great news for its shareholders, but what does it mean for Seabourn Cruise Line, its smallest brand?

Weinstein’s plan is explicitly twofold: 1. Focus on the two major US brands, Carnival Cruise and Princess Cruises (and overseas Aida); and, 2. Drive up demand and, thus pricing, by limiting inventory. In other words, focus on where the profits come from and by improving them (whatever that may be) without taking on the cost of lots of new ships and competing with itself by creating more berths to fill (driving per berth pricing down) and debt caused by new-builds, Carnival Corp will dig itself out of the financial hole it has been in. 

One thing is for sure: You can’t argue with success! However, the success of Carnival Corporation clearly does not hinge on the success of Seabourn, and it seems that is precisely how Carnival Corp. sees it. Heck, Seabourn has never been a profitable venture to the extent that it really could significantly change Carnival’s profit line. I am not even sure that Seabourn itself has been profitable (those figures aren’t released); especially recently. 

From my perspective, which is not unique in the travel industry, Seabourn is what I call a “degrading asset.”  Beyond the fact that it has been focused on reducing its size (selling off the Seabourn Odyssey and partial chartering both Seabourn Venture and Seabourn Pursuit expedition ships to APT), it has done little to enhance the onboard experience beyond changing out Thomas Keller for Solis (a reasonable cost-savings move that probably was long overdue). While those are consistent with the Weinstein approach, combining those two elements with its literal wholesale elimination of Seabourn’s entire sales team has a lot of red caution flags waving in the breeze. 

I do have to note that recently a former Seabourn person met me and said – whether true or not – that many at Seabourn appreciated my article Seabourn Terminates Entire Sales Team – Consolidates with Holland America: Carnival Goes Big on Big Ships!  Regardless, I was greeted like a star, not a pariah. 

Oh, but there is more. I receive emails and texts from clients, former clients, and others who find me, as well as read online about complaints concerning a significant number of onboard staff departing (with almost all former Seabourn executives departed and the entire sales team gone, who else is there to leave) and the formerly consistently excellent cuisine and service now apparently being dependent on the ship and particular sailings, I have to wonder if there is any plan to keep Seabourn as a top luxury line, no less in the Carnival stable of brands.

To be fair, I do have some clients who have recently had wonderful experiences, but I have also had hour-long conversations about how many misses and frustrations others have had. And in years past, “No” was a forbidden word, but not so much anymore. Alas, that is not the Seabourn I knew and lived for two decades. 

Now, please don’t shoot the messenger for this, but the rumors that Seabourn is looking to sell off the Seabourn Pursuit and Seabourn Venture to get out of the expedition business are out there. To be fair, the expedition business is now flooded with new ships, and thus the sky-high pricing is coming down, so profitability is reduced or eliminated. Add to that Seabourn’s overall demographic is not exactly the target market; and, while some itineraries are “hot,” quite a few are not (this is not unique to Seabourn); plus those seeking a Seabourn cruise experience on an expedition ship are disembarking disappointed…resulting in not only them not rebooking but causing their friends to cancel their bookings.

The other rumor is that the Seabourn Sojourn and Seabourn Quest are on the selling block too. Personally, and what do I know, I can’t see that happening unless the entire brand is sold. Is that a bad topic for me to discuss? lol

It has been over a year since my litigation with Seabourn was “resolved”.  And with some of my clients still booking Seabourn with my integral assistance, I have again inquired about restarting a direct relationship…or at least being able to sail on its ships. (Seabourn’s now-former VP of Sales repeatedly suggested it over the past year whenever he saw me).

Why would I do this? My rationale was (past-tense…hint!) two-fold: 1. It is an unnecessary inconvenience for my/Seabourn’s clients; and, 2. I cannot form my own opinions about the current Seabourn product – which, if good, can only increase sales. Instead, I have to rely on what I hear and read, noting that people are more likely to complain than compliment.  Oh, there is a third reason too: It would potentially be a boon to Seabourn’s sales.

Alas, Seabourn’s president, Natalya Leahy, has twice declined to restart a direct relationship.  Again, with my excellent relationship with every other cruise line (even the few I criticize), it really speaks to a rather “degraded” approach to Seabourn’s future. Remember, the industry is well aware of that ridiculous litigation and Seabourn’s continued refusal to move-on after the matter was “resolved” doesn’t exactly elevate its reputation. 

I would love to hear from Seabourn about its future plans to enhance its onboard experience from culinary to hardware to service. Better yet, I’d like to experience it. Heck, who knows more about what the Seabourn Experience was and should be than me?  

For me, with the present state of affairs, from Weinstein’s successful approach to turning Carnival Corp. profitable again, to Seabourn’s failure to show any indication that it seeks to improve its future, it is hard for me to recommend Seabourn…especially more than a few months out at a time. 

Unfortunately, with Seabourn doing nothing to show otherwise,  it leaves me with the only impression possible:  “Seabourn is a degrading asset.”