Carnival leverages scale with Starlink, MAST to optimize costs

Weinstein said rolling out SpaceX's Starlink high-speed internet will yield more than a 20% cost reduction per available lower berth day in 2024 while significantly increasing bandwith. This will result in better guest experience and higher on-board revenues, 'a clear win-win.'

Holland America Line's experience

Just this week Holland America Line reported a 'notable surge in guest satisfaction with internet service this year' following Starlink's installation aboard all 11 ships in its fleet. The final ship, Nieuw Amsterdam, was outfitted in mid-December during its dry dock.

'We've heard from guests the new Starlink high-speed internet is better than they expected while cruising,' said HAL's Kathleen Erickson, VP technology. 'For guests who are working remotely from our ships, it has been a game-changer. And for team members who rely on internet to stay connected with family back home, this is an important improvement.'

Holland America Line noted improved connectivity in regions such as Alaska where traditional technology can face interference from weather and mountains. The ships have also seen improvements in other challenging areas including ocean crossings and sailings in the Amazon, Antarctica and Chile.

$100m benefit expected from MAST

Weinstein said Carnival also launched its Maritime Asset Strategy Transformation (MAST). This centralized system was developed to optimize the management of equipment and machinery across all the company's brands and ships.

'MAST will allow us to leverage spare parts more effectively across the entire fleet and optimize our maintenance schedules and practices, all of which will strengthen our efficiency and reduce unplanned maintenance over time,' Weinstein said.

The company won't see P&L benefits from MAST during its implementation in 2024. But Weinstein expects a 'multiyear benefit, well in excess of $100 million, that really begins to ramp up in 2026.'

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