Sensation, Holiday and Carnival Problems

[CruiseHealing]

There were three ships used for FEMA: Sensation, Holiday and Ecstasy. The first two have left dry dock and we are hearing similar type problems, work not completed, long delays in leaving port, water (drinking) and plumbing problems, vibrations with regards to propulsion or thrusting, etc, etc, etc.

Can we call this a trend? Maybe so when you consider these two ships have the same recent history; that is, docked in port for 6 months during FEMA relief, and then a quick turn around in dry dock. You could call this a coincidence, but when you consider the types of problems most people would conclude that these are all related and you will probably see the same for the Ecstasy when it is released from dry dock later this week.

Now a note to Carnival: The Company did the right thing in September regarding the relief effort to New Orleans due to Hurricane Katrina. The corporation was paid well, and that did create a little buzz in the political circles, but the public did not care about the cost, it was helping out the citizens of Louisiana. For that the company received a lot of good press and it was a public relation success. However, and I wish I did not have to write this part, your PR success is turning into a public nightmare. In all probability your two ships returned to cruising with more severe problems then when it went to New Orleans in September. Where and how these problems occurred should not have been seen by your customers. Just as when the company received the ships after they were constructed a check (punch) list is completed before the Company takes ownership. It appears that a punch list was not used when it comes to releasing these ships back into service. If so, than how could plumbing problems, Safety (Sensation 3/23) concerns, and amenities like the slides not be working, never make it on the punch list?

After last weeks earnings disappointment and the investment market beginning to turn a cold shoulder to CCL, it is time to right your ship. First, come out with an announcement that the Company made a mistake of turning these ships too quickly in dry dock. For those that sailed during these first couple of cruises create a compensation program that would reflect your acknowledgement that errors were made and new processes will be put in place so that these types of problems will never happen again to your customers following a refurbishment. And finally, get these ships back in working order.

Now a note to all Cruisers: I have sailed both the Sovereign of the Seas (RCCL) and the Sensation two weeks after dry dock and refurbishment. Both ships had work that still needed to be completed, but the SOS was minor cosmetic work and the ship did seem to be complete. I am sure most of you have seen my review of my most recent 3/27 cruise on the Sensation. What have I learned from these two trips: 1. If the ship you are going to book is coming out of dry dock or refurbishment do expect to see some items not completed. 2. RCCL seems to have a better process in place to ensure that the ship is ready to take on passengers, consequently, if I had to choose between the two companies for a cruise after a refurb. I would take my chances with RCCL. 3. Do not get overly excited about refurbishments, they sound more extensive than they really are. Just expect some upgrades and enjoy the cruise.

I am looking forward to see if Carnival makes some announcement regarding these two ships and the recent cruises. They have lost a large group of cruisers already, as well as the first time cruiser that will never return to the seas. That is a shame. If Carnival does not make an announcement, then they need to fire their PR agency. Just read the boards lately, there is a larger than normal percentage regarding bad cruise experiences and most of those are related to these two ships. This week is going to be a big week for the Company, I hope they are responsive. Carnival Cruise Line it is your time for . . .

CruiseHealing

[bobobeagle]

Where can I read your review.

[CruiseHealing]

Here you go.

 

http://boards.cruisecritic.com/showthread.php?t=324588

[bobobeagle]

Thanks.

[SandyToes1978]

Very well said. I am anxious to see how the Ecstasy does on her re-entrance. Seems Carnival needs to step it up a notch, and get'er done!

[bobobeagle]

There is strength in numbers. What is everyone switched from the Fantsay to the Sensation just said we canel. Carnival does not make it's profit on the cruise fare, it is on the money spent on board and how would they pay their employees without the tip money?

[SandyToes1978]

I'm sure that by January, Carnival will have everything worked out, but all the bad publicity and reading about all those poor people on those ships makes me want to try and convince the other people in my group to switch lines altogether. I think Carnival is going to lose a LOT of people due to these issues.

[mrdood]

After last weeks earnings disappointment and the investment market beginning to turn a cold shoulder to CCL, it is time to right your ship.

 

The market is cyclical, Carnival is in the same place it was a year ago in April of 2005, same place as October 2005. Still listed as a buy, by analysts, I think your message to them would be more credible without the "sky is falling" part related to the market. They were under their last earnings, but they have also exceeded their projections more often than not.

 

I am not a Carnival cheeleader, just trying to be factual about the market situation.

[zqvol]

Maybe Carnival should look at finding some different yards to do their work. It seems to me that the yards are not getting the work done. If that is the case maybe they made promises that they could not keep.

 

Maybe Carnival should have cut down on what was scheduled.

 

Bottom line reports in the past 10 days show that these ships did not come out of the yards ready for passengers. Whose fault? Your guess is as good as mine, but Carnival has to bear the blame.

[futaba951]

After watching that show last year on RCI's SOS it seems that the cruise lines bring in their own workers and craftsmen to handle the refurbishments. The shipyard provides the dry dock and equipment as well as skilled workers to take care of the structural and hull issues. Seems as if most of the problems on these two ships fall back on Carnival as they would not necessarily be issues that the shipyards would handle. Who knows who's to blame for the problems. Carnival gets the blackened eye though, regardless.

[Kittybork]

Dry dock has nothing to do with refurbishments. Changing carpets, painting, and redecorating can be done anywhere: including at sea. Cruise lines do it while the ship is at the shipyard because it's convenient.

 

Dry dock is only needed for issues that are underwater.

[zqvol]

Dry dock has nothing to do with refurbishments. Changing carpets, painting, and redecorating can be done anywhere: including at sea. Cruise lines do it while the ship is at the shipyard because it's convenient.

 

Dry dock is only needed for issues that are underwater.

You're right it can be, but what was in the contract given the yard? Where they handling the work, was another contractor or was Carnival? I have no answer but I do not for one minute believe that these problems arose becasue of the FEMA leases.

[Kittybork]

nor do I. Unless, the ship's engines were not being maintained and run during that long time period. That might cause problems.

[centralcalicruzer]

We are booked on the Ecstasy August 21, so hopefully everything will be up and running by then. My daughter is rehearsing on the Ecstasy right now and says construction is going on round the clock. They leave Thursday from Mobile to sail to Galveston and leave from there on Saturday. I'm sure I'll find out from her how everything goes the first cruise. It's making me a little nervous to hear that both the Sensation and Holiday had problems (I haven't personally read anything about what problems the Holiday had, just from this post), but we will sail whatever ship our daughter is performing on and plan to have a great time no matter what. I just hope we don't have to deal with black water in our shower, I think I could handle just about any other inconvenience, but that sounds pretty gross!

[NotAPirate]

nor do I. Unless, the ship's engines were not being maintained and run during that long time period. That might cause problems.

Electricity and heating/air, and water are all run of a ships engine. Or rather, the engine provides the power to run all this. The ships are designed to be running constantly, so sitting for 6 months in a port they only had the "household" bits in operation... the propulsion system wouldn't have been running (the props). And the engineering crew have to be onboard to make sure all that runs.

 

But the odd thing is, the two ships in New Orleans (Ecstasy and Sensation) actually left port in October during the approaching Wilma, then again when they went to Mobile for work-ups, then AGAIN for the Sensation when it went from Mobile to Port Canaveral.

 

So, by that, wouldn't they have noticed problems with the propulsion system BEFORE this past week? Especially with a cruise from Mobile down around Florida to 'Canaveral (almost the same nautical distance to Grand Turk...). Or issues after receiving it from the repair port, basically before "getting the keys back?"

[SteelersFan1213]

There is strength in numbers. What is everyone switched from the Fantsay to the Sensation just said we canel. Carnival does not make it's profit on the cruise fare, it is on the money spent on board and how would they pay their employees without the tip money?

 

Lead the charge!! Cancel and take the penalty and write a letter, maybe others will follow, probally not. If you read the posts you will see that most finish thier posts with "still had a great time..." When you cancel I'm sure Carnival will be happy to find a list of people to take your place :p

[CruiseHealing]

The market is cyclical, Carnival is in the same place it was a year ago in April of 2005, same place as October 2005. Still listed as a buy, by analysts, I think your message to them would be more credible without the "sky is falling" part related to the market. They were under their last earnings, but they have also exceeded their projections more often than not.

 

I am not a Carnival cheeleader, just trying to be factual about the market situation.

 

You are right most bell weather stocks are cyclical in nature, but a stock that is at the same as it was 12 months ago is not something I want to invest in. In fact, 12 months ago CCL was at $51, it is now $47, a percent change of -7.8%. The biggest burden they have is not these two ships, it is the price of oil, just like the airline industry. When you look at its future P/E it is around 14, that is higher than RCL which is at 12.3. Applying the RCL P/E to CCL estimate of annual earnings results in a stock price of around $44. That is why Golden Sachs and other investment groups have lowered their expectations on CCL. Couple these downgrades with the fact that even Carnival has forecasted lower earnings twice in as many weeks indicate that CCL is in for a rough time on the market. I think the stock will be over sold and if I can pick some shares around the low $40's, I will do well over the next year.

 

With all that being said, none of the above takes in consideration of the recent problems with the Sensation and Holiday. If that hits the market this week or next, CCL will probably be in the low to mid $40's. I am hoping this is the last of their bad news. I want CCL to succeed because they are a part of my mutual funds and their success means more money to me. I hope that get through this rough spell quickly. I am a long time buyer in . . .

 

CruiseHealing