Genoa, Italy-based Costa Crociere, parent of Costa Cruises,
was acquired by Carnival Corp./Airtours. Costa Cruises president
and chief executive officer Dino Schibuola talked with Travel
Weekly cruise editor Fran Golden about the Costa product and what
changes the new owner might bring to the line.
TW: What does the Carnival/Airtours ownership mean for
Costa?
Schibuola: From our perspective, there is a little tinge of a
sadness because we were one of the few [cruise lines] owned by a
family for many years.
On the other hand, I think the way the industry has been
evolving, you need economies of scale and financial resources and
the ability to grow. Carnival has a history in multibrand
management. It has been made clear they bought us as a brand, not
for additional tonnage. So it's positive for us. We have access to
new resources.
TW: Do those resources include money for new Costa ships?
Schibuola: I don't think there are any definite plans. We are
waiting for the announcement of a new chairman for the Costa
Crociere company, which should come soon. And I think the new owner
wants to get more acquainted with our corporation. Clearly, for
Costa, our greatest opportunity for growth is in Europe. We are
identified with Europe, and in the summer months all our ships are
positioned over there. I think there is great opportunity in
Europe. Quite frankly, I think that's what attracted Carnival.
TW: What about opportunities in the North American market?
Schibuola: One does have to use a ship year-round. There may be
opportunities in North America to operate seasonally as we do now
or perhaps even other developments. In North America, with our
Cruising Italian Style, we are certainly a niche operator and not
the historical 200-pound gorilla.
TW: How do you view the role of agents in your plans?
Schibuola: More than other cruise lines, we are a sales driven
organization. Given our [small] size, more than advertising, we
rely on the travel agent to provide a nice picture of our product.
We have done hundreds of seminars to help agents with group sales
development because it is one of our prime targets. And we have
offered information on cruising in Europe to help agents sell that
market in general. It is not just "Costa is great, sell Costa" and
there you go. We give them a lot of information.
TW: Why was there such a price difference between what Carnival
paid for Costa Crociere ($300 million) and what Royal Caribbean
paid for Celebrity ($1.3 billion)?
Schibuola: Well, the fleets are undoubtedly a bit different;
although we also have new ships. It's difficult for me to comment
because I was not part of their transaction. But I think, like
beauty, value is in the eye of the beholder.
TW: How profitable is Costa?
Schibuola: For 1996, we had $660 million of revenue and a profit of
$53 million.
TW: What are your feelings about the Internet?
Schibuola: You have to [be on the Internet]; otherwise you are not
cool. I view the Internet not for transactions but as another way
to give information, sort of an electronic brochure. We are
finishing the design of a Web site [to be introduced in a month or
so at www.costacruises.com]. It will have all our itineraries, a
description of the ships, what you can do, what sights you can see
and so forth.
TW: Does Carnival have any plans for consolidation of
advertising, marketing and other back-office operations now that
you are officially part of its family?
Schibuola: We're not talking about tomato juice. A cruise line has
it's own personality and way of doing business, and I don't think
there is one formula that fits all the cruise lines. Carnival has
shown it wants to maintain the clear profile of the different
brands. But there are certain benefits -- for instance, in
purchasing -- you can derive from being the big guy, that don't
affect the brand.