NEW YORK (The Street) -- Taking a cruise vacation isn't just for retired old fogeys or people who want to party and get drunk. And Carnival Corp. (CCL), whose Princess line played a prominent role in popular 1970s TV show The Love Boat, isn't too big or behind-the-times to boost its profits.
At least these are several of the myths Carnival CEO Arnold Donald, who has been at the helm of the world's largest cruise line since July 2013, is seeking to dispel.
"Historically, the nine brands operated by Carnival had acted independently, at times there were major firewalls up and things were kept confidential within the brands," said Donald in an interview. Showing Wall Street that all of Carnival's brands are floating in the same direction may help bust the myth the stock isn't as attractive as smaller competitors.
Over the last two years, Carnival shares have gained 36%. Rivals Royal Caribbean (RCL) and Norwegian Cruise Lines (NCLH), however, have seen their stocks jump 99% and 79%, respectively, over the same time period, propelled by buzzy new ships and more recently, the plunge in fuel prices. Carnival has battled the lingering effects of some high-profile mechanical breakdowns at sea prior to Donald's appointment.
Early on in his tenure as CEO, Donald, who had previously spent 12 years on the company's board, got to work on kicking down some of the walls that were preventing stronger results for shareholders and experiences for vacationers at sea. The new mantra put in place by the company's new admiral: communication, collaboration and coordination.