Driving Innovation and Partnerships Forward

The Decision Brief Christine Duffy, President, Carnival Cruise Line Moderated by Peter Greenberg, CBS News THE VERDICT Guest behaviors are materially changing. Duffy said the behavioral shift since COVID is real and measurable: guests who used to request 8 p.m. late seating are now lining up at 5 p.m., and “people absolutely do not want” the 90-minute formal dining experience anymore. Carnival created express dining (under an hour) and flexible-time formats to match. The change is about how travelers use their time, a shift hospitality companies should all be considering. PATHS FORWARD Redesign around how guests actually use time. Duffy said guests wanted flexibility from the traditional multi-course dining ritual are are looking to move independently between activities and reconvene on their own terms, especially multi-generational groups. Companies that redesign their products around observed behavior have a much better opportunity to keep those guests. Use AI to assist human agents. Duffy said Carnival tried AI agents in its contact center and found that replacing humans didn’t work. “What we’re finding that it is more effective is assist from the AI agents rather than the AI agent.” Travel companies deploying AI as a full replacement for customer-facing staff may have to learn the same lesson. WHAT TO WATCH Duffy said “we’ll see” what the EU decides about reports of MSC being in preliminary talks to acquire an 80% stake in the Meyer Werft shipyard, but acknowledged the implication: if the deal goes through, a competitor would control the newbuild slots Carnival and Disney are using for upcoming ships. With limited yards able to build large cruise ships, owning one would give a cruise line leverage over its rivals’ delivery schedules. Duffy said guests aren’t holding back on onboard spending despite economic uncertainty, and Carnival is promoting more packages. The possibility of a ceiling — where incremental charges erode the value perception— is worth watching. Access all the Skift Takeaways from this event, as well as full session videos, presentation documents, and more editorial coverage at our Skift Global Forum attendees hub.