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Travel Weekly
a day ago
- Business
- Travel Weekly
Rod McLeod remembered for his warmth and marketing genius
Cruise industry titans remembered Rod McLeod, the longtime cruise executive, as a marketing genius who helped put cruising on the map. McLeod died on June 3, just shy of his 85th birthday. His long cruise industry career included executive positions at the each of the Big Three cruise companies, beginning in 1972 as Royal Caribbean's first marketing director before being promoted to chief marketing officer and executive vice president of sales, marketing and passenger services. Later, he would serve as president and CEO of Norwegian Cruise Line and became Carnival Corp.'s senior vice president of marketing. In an attempt to help revive domestic U.S. cruising, he was also president of American Classic Voyages for two years. "Rod really was a pioneer in the industry," said Richard Fain, the chairman and former CEO of Royal Caribbean Group. "He was involved in so many defining elements and growth. Beyond that he was a really good person. He formed so many special relationships. And this is an industry that is built on relationships." Fain praised McLeod's marketing prowess at a time "when nobody understood what cruising was." "He was one of the early pioneers to help communicate that cruising was something for everyone, and those campaigns were very successful for us," Fain said. "He was instrumental in creating the image of the industry and of Royal Caribbean in people's minds." Bob Dickinson, the former CEO of Carnival Cruise Line, recalled being good friends and competitors starting in the 1970s when McLeod was at Royal Caribbean. "Unlike a lot of other cruise executives, he was very comfortable in his own skin," Dickinson said, adding that McLeod had a "natural warmth and affinity for travel agents. "He wasn't an accounting guy. He had a great personality and was just fun to be around." Many travel advisors recalled McLeod and Dickinson's onstage banter at industry events. "We'd spar back and forth on issues, and nobody took it personally," Dickinson said. "Nothing was scripted, like it is today. It was a very different time and much more fun." Former Norwegian Cruise Line CEO Andy Stuart remembered meeting McLeod for the first time when Stuart joined the industry in 1988. "His name was always said with reverence," Stuart said. It was quite intimidating to meet him for the first time. He took time to chat with me and was the most humble and charming guy you could ever meet. "He took the time to chat with everyone," Stuart added. "It didn't matter who you were." Rick Sasso, chairman of MSC North America and the former Celebrity Cruises president, who first met McLeod in the early 1970s, said McLeod "was a classic marketing genius." "He brought incredible attention to our industry and their brands," Sasso said. "He had a great impact and was one of the most talented and well-respected" of the old guard of cruise executives. Innovation and 'witty sparring' McLeod was inducted into CLIA's Cruise Industry Hall of Fame in 2015. The organization said McLeod was "widely credited with leading an innovative marketing and sales organization that enabled Royal Caribbean to emerge as one of the cruise industry's most powerful and sustainable brands." Anne Kalosh, the editor of Seatrade Cruise News who has been reporting on the industry for more than 40 years, said McLeod was one of cruising's "greatest proponents and leaders, a gifted communicator, marketer and sales strategist." "As a young reporter, I would go into his office for a scheduled short interview and emerge two hours later with a much greater understanding of the topic and the cruise industry," she said. Kalosh also recalled "the witty sparring" between McLeod and Dickinson at industry events. "They were a famous duo of friendly competitors," she said. McLeod's grandson, Matthew Roderick Armstrong, said the family was planning to honor McLeod's wish that after his death, the family take a cruise together, calling at many of the ports he loved most. "Truly, the hardest decision will be choosing which of the cruise lines he shaped that we'll sail with," Armstrong said. McLeod is survived by two of his three children, six of his seven grandchildren and two great-grandchildren.
Travel Weekly
07-06-2025
- Business
- Travel Weekly
Obituary: Rod McLeod, longtime cruise executive and Royal Caribbean founding member
Rod McLeod, the longtime cruise executive and founding member of Royal Caribbean, died on June 3. He was 84. McLeod's long cruise industry career included executive positions at the each of the Big Three cruise companies, beginning in 1972 as Royal Caribbean's first marketing director before being promoted to CMO and executive vice president of sales, marketing and passenger services. Later, he would serve as president and CEO of Norwegian Cruise Line and became Carnival Corp.'s senior vice president of marketing. McLeod was inducted into CLIA's Cruise Industry Hall of Fame in 2015, with the organization saying McLeod was "widely credited with leading an innovative marketing and sales organization that enabled Royal Caribbean to emerge as one of the cruise industry's most powerful and sustainable brands." Cruise industry leaders mourned the loss of McLeod, remembering him as one of cruising's most influential marketing minds. "Rod really was a pioneer in the industry," said Richard Fain, the former chairman and CEO of Royal Caribbean Group. "He was involved in so many defining elements and growth. Beyond that he was a really good person. He formed so many special relationships. And this is an industry that is built on relationships." Fain praised McLeod's marketing prowess at a time "when nobody understood what cruising was." "He was one of the early pioneers to help communicate that cruising was something for everyone and those campaigns were very successful for us," Fain said. "He was instrumental in creating the image of the industry and of Royal Caribbean in people's minds." Former Norwegian Cruise Line CEO Andy Stuart remembered meeting McLeod for the first time. "When I joined the industry in 1988, Rod was already one of the key players - his name was always said with reverence," Stuart said. "It was many years before I met him in person, by which time his reputation had only grown. It was quite intimidating to meet him the first time. He took time to chat with me and was the most humble and charming guy you could ever meet." "He took the time to chat with everyone," Stuart added. "It didn't matter who you were. He impacted the three big industry groups in a significant way and will always be [remembered as] one of the foundations of today's industry. We will miss him. He will always be remembered as one of the good guys." Rick Sasso, chairman of MSC North America and the former Celebrity Cruises president who first met McLeod in the early 1970s, said McLeod "was a classic marketing genius and so well spoken and likable. You were easily attracted to his words and thoughts. He brought incredible attention to our industry and their brands. ... He had a great impact and was one of one of the most talented and well-respected" of the old guard of cruise executives. McLeod was also president of American Classic Voyages for two years and, after retiring from a third Royal Caribbean stint in 2003, cofounded a consulting company, McLeod Applebaum & Partners. His grandson, Matthew Roderick Armstrong, said that McLeod's "proudest achievements were the friendships he built across boardrooms and ports, and the fierce, unwavering love he poured into his family. Whether brainstorming bold new voyages with colleagues or cheering at every grandkid's recital, he measured success by the bonds he forged and the smiles he sparked." Armstong said that while the family has not begun formal planning for McLeod's funeral, "our family intends to honor Rod's wish for an intimate gathering by taking a cruise together that calls at many of the ports he loved most - especially Perfect Day at Coco Cay, the island experience he helped bring to life. Truly, the hardest decision will be choosing which of the cruise lines he shaped that we'll sail with." McLeod is survived by two of his three children, six of his seven grandchildren and two great grandchildren.
Yahoo
07-06-2025
- Business
- Yahoo
Is Carnival's Big Growth Spurt Over?
Carnival's cruise business was shut down during the coronavirus pandemic. It has experienced strong growth since the world got used to living with COVID-19. Carnival expects to have another good year in 2025, but next year's comparisons might be less impressive. 10 stocks we like better than Carnival Corp. › Carnival (NYSE: CCL) went from a full stop to full speed ahead, and the result was, as you might expect, a dramatic improvement in its business performance. But what happens now that the cruise line is at the top of its game? Here's what's happened and why 2026 could be a much less impressive year for Carnival. Carnival operates nine branded cruise lines, including its namesake brand. It is one of the largest cruise ship owners and operators on the planet. Cruise lines have two main sources of revenue. The first is the fares passengers pay to get on the boat. The second is the spending they do while on the ship. The cruise ships Carnival operates are like floating resorts. You pay for a room, and then you pay for all the other stuff you want to do. Some food and entertainment are included in the cruise cost, but plenty of add-ons are available. That said, Carnival doesn't see a dime of income if its ships aren't running. And that's exactly what happened during the early stages of the coronavirus pandemic. Cruise ship passengers are always at some risk of catching contagious diseases, but the risks presented by COVID-19 were so extreme that governments shut down the industry. The last few years have seen impressive business performance from Carnival because of that shutdown. The chart above shows the trailing-12-month revenues and earnings per share for Carnival. It tells the story pretty clearly. Revenues fell to zero and then recovered. Earnings fell deep into the red and then recovered. In fact, the inflation coming out of the pandemic has actually helped out here because the cost of other vacations, such as trips to amusement parks, have increased to the point where cruises look like a relative bargain. At this point, Carnival's 2025 cruises are fairly well booked, so this should be another decent year. But two problems are likely to start showing up more clearly in 2026. First, the rebound from zero revenue seems to have largely played out. Further improvement will require continued strong execution. For example, revenue rose to a record level in the first quarter of 2025. But the year-over-year rise was dramatically smaller than in the first quarter of 2024. The boom years are likely over, and continuing to move the needle will be much harder from here. Second, Carnival added a significant number of new ships leading up to 2024. More ships mean more ability to increase revenue. And new ships often bring renewed interest from customers, too. Between 2025 and 2028, there won't be nearly as many new ships, so this growth lever won't be as powerful. Price increases (for both the cruise and onboard spending) will still improve the top line of the income statement, but they may keep some customers away. There is a silver lining in all of this, however. Carnival took on debt after the pandemic. Buying ships is costly, and so is paying to maintain a business that isn't generating any revenue. The pullback on new ships will allow the company to more quickly reduce its leverage. That is a good thing, and falling interest costs should help the company's bottom line. That said, Carnival's top line in 2026 could be far less exciting than it has been recently. And emotional investors may see that as a big negative, even as Carnival works to improve its balance sheet. If you own Carnival or are looking at the stock, remember that the growth coming out of the pandemic was an anomaly. Before you buy stock in Carnival Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Carnival Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy. Is Carnival's Big Growth Spurt Over? was originally published by The Motley Fool
Bloomberg
05-06-2025
- Business
- Bloomberg
Why Two Million Tourists Are Boarding Cruise Ships on a Texas Island
Much of the historic Strand District in Galveston, Texas, is about as tacky as it comes. The 19th-century buildings that line its streets are packed with tequila-shot bars, beach shops and souvenir stands. On a recent visit during a dreary spring day, they were all doing brisk business, filled with cruise passengers checking out t-shirts that read 'I Don't Get Drunk I Get Awesome!' and 'Shut Up Liver You're Fine.' Just a few hundred feet away were two Carnival Corp. ships, the Dream and Jubilee, looming over the port that they've helped to revitalize into a regional economic force.
Yahoo
04-06-2025
- Business
- Yahoo
Why Carnival Stock Surged 27% in May
Carnival continues to report records across metrics. It refinanced $5.5 billion at much better rates in the first quarter, but total debt is still very high. Carnival stock is attractively priced. 10 stocks we like better than Carnival Corp. › Carnival (NYSE: CCL)(NYSE: CUK) stock jumped 27% in May, according to data provided by S&P Global Market Intelligence. The stock is on the rebound after crashing earlier this year on fears of crackdowns on cruise industry taxes, and it got a boost from an analyst upgrade. Carnival stock has been volatile since crashing when the pandemic started. The company has made incredible progress in rebuilding its business, with record demand every quarter that it keeps smashing through, but the market is still concerned about its massive outstanding debt. The 2025 fiscal first quarter (ended Feb. 28) was another huge success. Revenue increased 7% year over year to $5.8 billion, and operating income nearly doubled to $543 million. The advanced booking position was in line with last year's record highs, and bookings for 2026 surpassed previous records. Total deposits were $7.3 billion, a first-quarter record, driven by both ticket sales and pre-cruise onboard sales, and ticket sales were at historical highs. Net yields, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), and adjusted net income all exceeded management's guidance. Management is focused on driving demand and on cost efficiency. It launched a robust digital ad campaign that's yielding strong results, and it's getting the word out about what it calls its "game-changing asset," Celebration Key. This is an exclusive island resort devoted only to Carnival cruise guests. It's also ordering new ships to keep up with growing demand and generate further sales growth over the next few years. The business is going well, but debt is still weighing on the balance sheet. Management made some major moves to reduce it in the first quarter, refinancing $5.5 billion of debt with lower-interest notes. It expects $145 million in annualized interest expense savings, and it reduced the total debt by another $500 million. However, Carnival's total debt stands at $27 billion as of the end of the first quarter, well above its historical levels. Carnival stock headed lower in February after Commerce Secretary Howard Lutnick said the Trump administration would get tougher on cruise companies that don't pay taxes. But as the price tumbled, it started to look very attractive to bargain hunters. Even now, Carnival stock trades at just 11 times forward one-year earnings. It also got a boost when an HSBC analyst raised it from a reduce rating to a hold rating. Carnival stock may not be for the most risk-averse investor, but it could be an excellent buy right now for investors who can handle a bit of risk. Before you buy stock in Carnival Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Carnival Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 HSBC Holdings is an advertising partner of Motley Fool Money. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool recommends Carnival Corp. and HSBC Holdings. The Motley Fool has a disclosure policy. Why Carnival Stock Surged 27% in May was originally published by The Motley Fool Sign in to access your portfolio
