Carnival is the world's pre-eminent cruise operation with more than 80 ships and another dozen or so on order. With net income of more than $2.2 billion on revenues of under $12 billion, the company is in excellent financial shape. The company's unusual ownership structure and penchant for expansion into ancillary businesses like the ill-fated Carnival Air Lines suggests a management uncomfortable with the status quo.
The company has been dogged by allegations of crimes taking place on its cruises and the emerging phenomenon of the "sick ship" that somehow infects most of its passengers with exotic illnesses. Nonetheless, the leisure industry is poised to grow impressively as the worldwide middle class expands enormously.
Carnival is a family business, run by the son of the company's founder. Carnival Corporation's core business should see above trend growth, but the risk-taking aggressiveness that grew the company so quickly could easily backfire on a new, larger stage.
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