<p style="text-align: justify;"><span style="font-size: small;">Carnival Cruise Lines is the only cruise line in the world with a  clearly defined product, according to Gerry Cahill, president and CEO.  &ldquo;All the other lines are trying to go up-market,&rdquo; he said, &ldquo;and tend to  blend. We are truly defined: we offer a memorable vacation experience  and a great value, targeting middle-America. Our target guy is 40 some  odd years old and may have a family, but he is not making $1 million a  year &ndash; he just want to have a great vacation experience.&rdquo; </span></p>
<p style="text-align: justify;"><span style="font-size: small;">Last year, Carnival broadened its passenger sourcing by adding  Baltimore as a homeport and is starting year-round service from  Charleston this year, &ldquo;all effectively growing our market &ndash; while  stripping out some cost (air),&rdquo; said Cahill. &ldquo;Now 50 percent of US  population lives within a 5 hour drive of our ports &ndash; helps make the  vacation product more affordable.&rdquo;</span></p>
<p style="text-align: justify;"><span style="font-size: small;">This may be one of the reasons  why the first newbuilding order placed by Carnival Corporation in more  than two years was for a new ship for Carnival. The parent company  announced in December that a third sister ship to the Carnival Dream  will be built by Fincantieri for delivery in spring 2012. The  130,000-ton, 3,690-passenger (double occupancy) ship will cost an  estimated $200,000 per berth or $735 million. Not yet named, the new  ship will follow the second sister ship, the Carnival Magic, which will  be delivered in 2011.</span></p>
<p style="text-align: justify;"><span style="font-size: small;">Cahill finds himself at the helm of the  largest cruise brand in North America, having been named to that  position about two-and-a-half years ago, succeeding Bob Dickinson, after  many years as the CFO of Carnival Corporation. </span></p>
<p style="text-align: justify;"><span style="font-size: small;">Cahill does not  say much about it, but he made a series of executive changes at  Carnival, bringing in new executives in marketing, sales and guest  services.</span></p>
<p style="text-align: justify;"><span style="font-size: small;">The goal, however, has not changed much if at all. "What  we try to do," he said, "is to reinforce internally what Carnival  Cruise Lines is all about &ndash; we do fun better than anybody else."</span></p>
<p style="text-align: justify;"><span style="font-size: small;">Cahill  said that all senior execs sail on the ships at least four times a  year.&nbsp; "I have been on the ships 15 to 20 times this year &ndash; meeting with  entire crew, and we talk about what we are &ndash; how we create memorable  experiences &ndash; from towel animals to singing and dancing in the dining  room," he said.</span></p>
<p style="text-align: justify;"><span style="font-size: small;">"Our focus is on reinforcing who we are."</span></p>
<p style="text-align: justify;"><span style="font-size: small;">One  challenge he faces is that the public perception is not always equal to  the product quality &ndash; "the quality is far superior to the perception,"  Cahill said.</span></p>
<p style="text-align: justify;"><span style="font-size: small;">He listed two objectives:</span></p>
<p style="text-align: justify;"><span style="font-size: small;">First, "We want to  people to come back more often. We measure if they come back and how  often they come back, and we are seeing an increase. It is the way we do  the product. We all know there is huge pressure on pricing, but we have  not cut back on the product, the food and entertainment is better than  ever, although we have made some trade-offs.</span></p>
<p style="text-align: justify;"><span style="font-size: small;">Second, "We want to  attract new people &ndash; what our marketing department calls &ldquo;cruise  rookies&rdquo; &ndash; we want them to come and try the product for their first  cruise &ndash; so we need something to catch their eyes &ndash; such as waterslide  or serenity area. Once onboard, we will win them over through quality.</span></p>
<p style="text-align: justify;"><span style="font-size: small;">"Once  you understand who you are, it is not so difficult," Cahill said.</span></p>