Carnival Corp. to proceed cautiously with Ocean Medallion
FORT LAUDERDALE -- Carnival Corp. is taking a slow approach to introducing Ocean Medallion technology, making sure it works right and is delivering the services that customers really want, CEO Arnold Donald said Friday at Travel Weekly's CruiseWorld.
Speaking to travel agents at the conference, Donald said the technology is so transformational that Carnival Corp. doesn't want to create a future shock for past passengers.
The Ocean Medallion is a wearable disc that can be worn as a pendant, wristband or clip. Besides functioning as a stateroom key and streamlining the boarding process, the device is billed as a "personal concierge." When used in tandem with the Ocean Compass app, the Ocean Medallion will enable passengers to make dinner reservations, order drinks to be delivered where they are located, receive excursion invitations based on interests, and play casino games anywhere on the ship.
"We've got to be really intelligent about how we introduce this because it's different," Donald said.
Carnival Corp. did a multimillion-dollar upgrade of the Regal Princess' terminal at Port Everglades to create a new embarkation experience. "When guests walk through that terminal, it doesn't feel like what they're used to, so we want to manage all the unintended reactions," Donald said.The first ship to have the Ocean Medallion, Princess Cruises' Regal Princess, was to offer it on the entire 3,560-passenger ship starting Nov. 13, but the rollout has been scaled back to select guests and groups.
The MedallionNet rapid Internet service, which is in use on the whole ship, is drawing rave reviews, Donald said.
Carnival Corp. is targeting the 2018 first quarter for a wider introduction of the Ocean Medallion. "The guests will decide what they want, how they want it when they want it. That's why we're introducing it slowly to make sure we get it right because it's truly transformational," Donald said.
Carnival is also moving deliberately on developing a new $200 million beach destination in Grand Bahama. Donald said Carnival signed a deal to build the destination just before a change in government in the Bahamas.
"We're working closely with the new government to make sure we've got the right location, the right development concepts and that it will work for the locals," Donald said. "It's not just a matter of building a destination, but building a destination that's woven through the local community. We hope to have that destination completed in the next few years, but it is a process."
Donald was also asked why Carnival sells through warehouse club Costco, which uses gift cards convertible to cash as a rebate when club members buy cruises
"I don't have an easy answer for any of these big-scale folks that go low-cost," Donald responded. "You have to match up your business where it really will compete effectively."
He said agents that provide personal service and client understanding will not suffer from bottom-feeder competition, but he said Carnival will look at the issue. "We would prefer to see strong pricing," he said. "There's no big reason to be discounting today."
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