With the appointment of Christine Duffy, Carnival Cruise
Line becomes one of the few and certainly the largest cruise brand to be headed
by a former travel agent.
That bodes well for Carnival, which over the years has
sometimes struggled to manage tensions between its commitment to agents and the
preference of some customers to buy direct.
Duffy, 53, started her career as an agent with McGettigan
Partners, a specialist in incentive travel, where she rose through the ranks to
become president.
On Dec. 17, Carnival Corp. CEO Arnold Donald chose her to
become the fourth president of the 24-ship Carnival brand, succeeding Gerry
Cahill, who retired in November.
Duffy said her background as an agent was one of the things
that prepared her to move into her new role, with its high visibility and
responsibility.
“Certainly when I was a travel agent I sold a lot of
Carnival cruises, and I certainly can relate to the brand and our guests,” she
said.
Since 2010, Duffy has been president and CEO of CLIA, the
industry’s trade association. Before that, she spent a decade at St.
Louis-based Maritz Travel, which acquired McGettigan in 2001.
In searching for Cahill’s successor, Donald said that the
ideal candidate would be someone who resonates with Carnival’s sociable and
fun-loving brand.
“We did talk a lot about the brand and about my admiration
for Carnival Cruise Line,” Duffy said about her discussions with Donald
regarding the job. “I do like people. I’m definitely a people person. I’m very
social, and I like to be busy and engaged and interact. Everything I know about
the Carnival brand is that it’s all about fun, and I think that’s what
vacations should be.”
Duffy will begin her new duties on Feb. 1, the same day that
Carnival Corp. rolls out its first-ever Super Bowl ad. Although the ad covers
all of Carnival’s brands and is meant to reinforce cruising as a vacation
option, it serves as the culmination of a comeback for the Carnival brand in
particular.
Duffy steps into the president’s chair as the line has
rebounded from a collapse in demand following the Carnival Triumph engine room
fire in February 2013 and a roasting in the consumer media over Carnival’s
handling of the disabled ship.
Shortly after the fire, Carnival said its consultants
expected the brand’s full recovery to take three years. Earlier this year, the
company cited YouGov’s BrandIndex survey, which found Carnival the most
improved U.S. brand in consumer perception for the first half of 2014.
As part of its recovery bid, the line launched its Carnival
Conversations initiative to solicit feedback from travel agents and make
changes to boost its standing with the trade.
Duffy said she very much appreciates the importance of
agents.
“I’m very supportive of the channel,” she said. “And I
believe that with so many cruise options out there, using a travel professional
… is the best way to ensure that you get on the right cruise for you.”
At the same time, she said, Carnival will continue to offers
customers a choice for those who want to book direct.
“Any business has to pay attention and work with customers
the way customers want to work with you,” she said.
Duffy said she first met Donald through Maritz Travel CEO
Steve Maritz. Maritz, who said he’s talked to Donald about Duffy “any number of
times,” said she combines a good strategic perspective with the ability to
execute.
“On top of that she’s been through some crises in the travel
business and she’s shown a cool head and leadership ability,” he said.
Duffy’s impending departure from CLIA leaves a hole at the
trade group just as it is in the process of consolidating its operations in a
new office in Washington.
A transition plan is underway and will be announced shortly,
said Adam Goldstein, chairman-elect of CLIA and president and COO of Royal
Caribbean Cruises Ltd.
“While Christine will certainly be missed at CLIA, she has a
strong team at CLIA who will continue to support our membership and the many
activities we have underway around the world,” Goldstein said.
With the job change, Duffy stands to get a big pay increase.
While Carnival has not yet disclosed her salary, as president and CEO of CLIA
Duffy earned $872,569, according to a filing nonprofits are required to make
with the Internal Revenue Service.
The retiring Cahill earned total compensation of more than
$2.9 million last year, according to Carnival’s proxy statement for the 2014
annual shareholders meeting.
Duffy’s appointment gives the cruise industry its fourth
female brand president in a little over a year, following the appointments of
Edie Rodriguez at Crystal, Jan Swartz at Princess and most recently Lisa
Lutoff-Perlo at Celebrity.
Rodriguez said that if the top of the cruise industry was
once a boys club, women now have a boardroom of their own.
“I think it’s a wonderful girls club to be in, and more
power to the girls club,” Rodriguez said.
In naming Duffy president, Donald didn’t mention gender but
rather cited her dynamic leadership and wealth of experience as qualifications
for the job.
Brad Tolkin, co-chairman and CEO of World Travel Holdings,
called Duffy “a respected industry leader,” while Vicky Garcia, COO and
co-owner of Cruise Planners, of Coral Springs, Fla., predicted, “She will
resonate with travel agents and be front and center in the industry.”
Duffy said that when she started her career as an agent in
1982, she never imagined she would end up as president of a cruise line, much
less of the world’s largest line.
“But, boy, it just shows that with a lot of hard work and
passion, a girl from Philadelphia can work her way through the ranks to become
president of the largest cruise company,” Duffy said. “I’m honored and thrilled
to be taking on the challenge.”