Direct Sales Have Decreased Under New Leadership, Says Carnival Chief

Carnival Cruise Lines is deemphasizing its direct-to-consumer sales channel this year following the departure of two key executives, Carnival Corp. CEO Micky Arison said on Thursday during the company’s earnings call.

“Two of Carnival’s senior sales and marketing executives, who were clearly the most aggressive in growing Carnival Cruise Lines’ personal vacation planning and direct business, left the company,” Mr. Arison said. “One went to Royal Caribbean, and one went to NCL.”

Mr. Arison was referring Bob Becker, now a senior vice president at Norwegian Cruise Line, and Vicki Freed, now in the top sales position at Royal Caribbean International. Both executives left Carnival early this year.

Mr. Arison lauded Carnival Cruise Lines CEO Gerry Cahill and his team for deciding to sell more cruises through the travel agent channel. The result has been decreased general and administrative expenses and improved yields, said Mr. Arison. Cahill took over for longtime CEO Bob Dickinson, who retired last November.

“Gerry and his team... have really revaluated the [direct sales] program, and the fact is that they have significantly reduced the business from that program,” Mr. Arison said. “The result is and will be, at least for the time being, less direct business.”