ENCORE: Cruise Ship Wars | Mayday | 4

Summary

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Business Wars: ENCORE: Cruise Ship Wars | Mayday | 4

Host: David Brown
Release Date: July 3, 2026

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Episode Overview

This episode of Business Wars explores the fierce corporate struggles and catastrophic challenges that came to define the cruise industry’s modern era. Centered on Carnival’s battle for supremacy, the episode details how boardroom strategies gave way to existential threats as the pandemic decimated the global cruise business. With dramatized scenes, interviews, and real historical context, the story covers Carnival's pivotal acquisition of Princess Cruises, high-profile disasters that shook public trust, and the unprecedented crisis brought by COVID-19—including the harrowing experiences onboard infected ships and industry efforts to survive and rebound.

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Key Discussion Points and Insights

1. Carnival vs. Royal Caribbean: The Battle for Princess Cruises

• Setting (00:00–04:56, 05:48–13:00):
  • In early 2002, Carnival CEO Mickey Arison is in London, determined to upend Royal Caribbean CEO Richard Fain’s move to acquire Princess Cruises.
  • Arison argues Carnival is more authentically “cruise-focused” than rival Royal Caribbean (01:08):

    “We’ve never had to do that at Carnival because cruising is in our blood. My father practically invented this business.”
    —Mickey Arison, 01:08

  • Arison navigates the “poison pill” clause—a contractual penalty of $500 million should Carnival acquire Princess before January 2003—by lobbying for a vote to merely adjourn the shareholder meeting (03:03).

    “If you don’t accept the offer, then the poison pill won’t be activated … all you’re doing is kicking the decision down the road until you have more information.”
    —Mickey Arison, 03:03

  • The shareholder meeting is a tense, even hostile, affair as British private shareholders clash with financially motivated institutional investors (08:00–10:00).
    • Arison delivers a heartfelt defense:

      “Carnival is a brand builder, not a brand destroyer. We've taken over several cruise lines … all of them have thrived under our leadership.”
      —Mickey Arison, 09:59

    • Carnival’s strategy triumphs; the meeting adjourns, blocking Royal Caribbean’s deal. Eventually, Carnival’s bid for Princess is accepted (13:00), making it the industry’s dominant force.

2. Cruise Industry Expansion and New Competition

• 2000s–2010s (13:45–15:00):
  • Carnival solidifies its “king of the seas” status with over half the market post-acquisition.
  • Norwegian Cruise Line eventually goes public in 2013, buying up competitors and ranking third in market share.

3. Catastrophe at Sea: Disasters Plaguing Carnival

• Costa Concordia (2012) (13:45–14:45):
  • Carnival subsidiary’s shipwreck in Italy leaves 32 dead; the captain found guilty of manslaughter.
• “Poop Cruise” (2013) (14:45–15:45):
  • Fire aboard Carnival Triumph strands the ship; passengers endure days without power or amenities.
  • Incidents fuel negative media coverage and leadership scrutiny:

    “The sewer is backing up and like water is in the cabins, and it’s just a nightmare.”
    —Anonymous passenger, 15:00

4. Carnival Leadership Crisis

• Mickey Arison Steps Down (15:07–16:44):
  • Carnival board asks Arison to step down as CEO after these crises.
  • Arison agrees, quips:

    “I've always wanted to take up golf.”
    —Mickey Arison, 16:40

  • Arnold Donald assumes CEO role; Carnival’s stock rebounds temporarily.

5. COVID-19: The Industry’s Existential Threat

• Diamond Princess Outbreak (18:51–24:04):

  • Early 2020, Diamond Princess is quarantined in Japan as COVID-19 rips through the ship.

    “He reported that he started exhibiting symptoms on January 19, one day before he boarded the ship.”
    —Japanese Health Ministry Officer, 19:13

  • The ship quickly becomes the site of the largest outbreak outside China, with more than 700 infected and 13 deaths.

    “The more he learns … the more it seems like the perfect incubator for a virus.”
    —David Brown, 24:07

• White House Pressure and Government Lobbying (26:19–27:59):

  • Olivia Troy, advisor to VP Mike Pence, fields desperate calls from the cruise industry to prevent an industry-wide shutdown.

    “If cruising is suspended, this would be financially devastating to all of our business. And I don't think I need to remind you how important cruising is to the economy, especially in Florida.”
    —Cruise Industry Lobbyist, 27:17

  • Despite new protocols, outbreaks and passenger fears worsen.

• Zaandam Crisis: Personal Stories from the Pandemic (29:30–39:35):

  • Donna Mann and Jorge Hill, elderly passengers on Holland America's Zaandam, fall ill as the ship becomes a floating quarantine.
  • Ports refuse entry; four die on board before the ship finally docks in Florida after high-level negotiations (39:35).
  • Crew remain stranded at sea for months afterward, with widespread hardship.

6. Industry-Wide Shutdown and Struggle for Survival

• Financial Losses and Layoffs (33:56–35:17):

  • Carnival CEO Arnold Donald calculates $650 million in monthly losses during the no-sail period.

    “We'll borrow money, we'll sell older ships. Any government assistance that is offered, we'll take. But we need to brace for hard times. It's likely there will be furloughs and layoffs.”
    —Arnold Donald, 34:33

• Recovery and Lawsuits (May 2022) (41:35–end):

  • Major cruise lines survive via extreme financial measures, while a dozen smaller companies collapse.
  • Dozens of lawsuits are filed for negligence and abandonment.
  • Carnival, Royal Caribbean, and Norwegian slowly resume service, implementing new health protocols: vaccination, testing, masks, quarantines.
  • Business rebounds in 2024 to surpass pre-pandemic numbers.

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Notable Quotes & Memorable Moments

• On Carnival’s business ethos:

  “Cruising is in our blood. My father practically invented this business.”
  —Mickey Arison, 01:08

• Boardroom drama:

  “If I weren't committed to seeing this deal through, would I have spent the past three weeks meeting with shareholder after shareholder and enduring your horrendous weather?”
  —Mickey Arison, 10:19

• Pandemic at sea:

  “The more he learns about how a cruise ship operates, the more it seems like the perfect incubator for a virus.”
  —Narrator, 24:07

• Industry desperation:

  “…if you could please urge [VP Pence] and the CDC to hold off on making any decisions until [the meeting], I would greatly appreciate it … Carnival Chairman Mickey Arison’s a longtime acquaintance of the President.”
  —Cruise Industry Lobbyist, 27:35–28:07

• Resignation in the face of crisis:

  “I've always wanted to take up golf.”
  —Mickey Arison, 16:40

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Key Timestamps for Important Segments

• Carnival’s Princess Strategy: 00:00–04:56, 05:48–13:00
• Shareholder Showdown: 08:00–10:00
• Final Victory: 13:00–13:45
• Costa Concordia & Triumph Disasters: 13:45–15:45
• Arison’s Demise as CEO: 15:07–16:44
• Diamond Princess Outbreak: 18:51–24:07
• U.S. Government Response: 26:19–27:59
• Zaandam Passenger Ordeal: 29:30–39:35
• CEO Arnold Donald on Survival: 33:56–34:49
• Lawsuits & Industry Recovery: 41:35–end

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Episode Tone and Style

The episode balances suspenseful, dramatized boardroom and crisis scenes with factual narration and poignant, often emotional testimonies. The narrative is urgent, gripping, and at times deeply empathetic—especially in recounting COVID-era ordeals at sea. Business braggadocio contrasts with human frailty and institutional fear, illustrating both the high-stakes games of corporate consolidation and the devastating real-world consequences of an industry brought to its knees.

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Final Thoughts

“Mayday” tells a sweeping story of cutthroat business maneuvers and historic catastrophe, culminating in a fragile but real recovery. It underscores how strategic ruthlessness gave way to corporate humility in the face of uncontrollable disaster—reminding listeners that, for all its fortunes and failings, the cruise industry is resilient but forever changed.

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Transcript

[Narrator (David Brown)]

Audible subscribers can listen to all episodes of Business wars ad free right now. Join Audible today by downloading the Audible app. It's early 2002 in London, England. Carnival Cruise Line president Mickey Arison sits across from a Princess Cruises shareholder. Outside, icy rain pours down and. And the cuffs of Arison's pants are still damp from his short walk from the cab to the restaurant door. But Arison's not letting his discomfort distract him. He's here in this cold, dark city on a mission.

[Mickey Arison]

Look, I know that Richard Fane and other Royal Caribbean executives are out there saying that I'm a spoiler that Carnival doesn't really want to buy Princess. We just want to prevent Royal Caribbean from buying it. But look, I can assure you. But that's not the case.

[Narrator (David Brown)]

In late 2001, Mickey learned that Royal Caribbean CEO Richard Fane had made a deal to buy Princess Cruises. Now Mickey is doing everything he can to stop that deal from going through.

[Mickey Arison]

And let's talk about Richard Fain. He swooped in and took over Royal Caribbean. Look, he's not a cruise man. He hires a bunch of Ivy League consultants to help him run the business. We've never had to do that at Carnival because cruising is in our blood. My father practically invented this business. Has Princess ever needed to bring in consultants?

[Narrator (David Brown)]

I'm not sure.

[Mickey Arison]

I doubt it. Now, let's look at what these Ivy League consultants brought to Royal Caribbean. Since Fame took over, Royal Caribbean has consistently underperformed compared to Carnival. And per the terms of the deal, he'd retained the top position once he acquired Princess. I don't think there's any reason to believe he'd do a better job overseeing a bigger company.

[Narrator (David Brown)]

The shareholder cuts into his stake. I understand what you're saying, and I don't completely disagree. But even if Carnival came in and made a better offer, we don't know if the regulators would approve it. We could be throwing away a perfectly good deal with Royal Caribbean for a deal that could get nixed.

[Mickey Arison]

It's true. But you don't know that Royal Caribbean will get approval either. That's a gamble you'll have to take with either company.

[Narrator (David Brown)]

But what about the poison pill? When making the deal with Princess, Richard Fane insisted on a clause stating that if Carnival gains control of princess before January 2003, then the equivalent of $500 million of princess money will go to Royal Caribbean. Fane is counting on his belief that Carnival can't afford to pay $500 million on top of what they'll have to pay to buy Princess. Mickey takes a sip of his wine and gives the shareholder a sly grin. He's confident he and his team have come up with an ingenious way around the poison pill.

[Mickey Arison]

So you and the other shareholders are set to vote on the Royal Caribbean deal in a few weeks, right?

[Princess Cruises Shareholder]

Mm.

[Mickey Arison]

What if you just voted not to vote?

[Narrator (David Brown)]

What do you mean?

[Mickey Arison]

Vote? To adjourn the meeting. Don't make any decision regarding the Royal Caribbean offer. If you don't accept the offer, then the poison pill won't be activated and Richard Fain's offer is binding for a year. He can't revoke it. That's plenty of time for us to know if the regulators will approve the sale to us. All you're doing is kicking the decision down the road until you have more information. No harm, no foul.

[Narrator (David Brown)]

The shareholder wrinkles his brow. It can't be that easy.

[Mickey Arison]

Look, to be honest, I didn't think it could be true either. But our lawyers have been through this with a fine tooth combination. This is completely above board. And look, it's better for you as a shareholder. If we can get into an open bidding war with Royal Caribbean and not have our hands tied by a poison pill, you'll likely make more money.

[Narrator (David Brown)]

The shareholder leans back in his chair. This is interesting. Mickey nods. A few months ago, he thought the odds were long that Carnival would be able to spoil Royal Caribbean's deal and buy Princess itself. But now he's starting to think he has a real chance. And he's going to do everything he can to secure the deal. Because if he does, Carnival will be uncatchable. With the Spark Cash plus card from Capital One, you earn unlimited 2% cash back on every purchase. And you get big purchasing power so your business can spend more and earn more. Steven, Brandon and Bruno, the business owners of Sandcloud, reinvested their 2% cash back to help build the company's retail presence. Capital One, what's in your wallet? Find out [e-mail] SparkCashPlus terms apply.

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[Narrator (David Brown)]

From wondry. I'm david brown, and this is business war. On our last episode. Carnival Cruise Line was the first cruise company to go public, and it used its newfound war chest to acquire other cruise lines. But when they attempted to take over their biggest rival, Royal Caribbean CEO Richard Fain was able to stave them off. For years, both companies continued to grow. Through acquisition, Carnival maintained its lead as the most successful cruise company. But Royal Caribbean was nipping at their heels. Now, whoever wins the fight to acquire Princess will will be the undisputed cruising leader. But a bigger threat to the entire industry looms in the future. This is episode four, Mayday. It's Valentine's Day 2002 in London, England. Princess Cruise Line shareholder meeting. Mickey Arison walks into a packed ballroom in the Royal Lancaster Hotel. He's flanked by 14 other executives from Carnival. Each one of them has bought a single share of Prince's stock in order to be allowed entry into the meeting. Arison and his team make their way to the front row of seats. Several of the shareholders glare at them. One man dressed in a tweed jacket and a bow tie hisses at the Carnival folks, get the hell out of here. Harrison ignores him. The Carnival team knew they would face a hostile crowd. Many are private Princess shareholders. They are largely British and have no interest in the company being sold to the crass Americans of Carnival. Arison is counting on the institutional investors, those representing pension plans and index funds, to be his allies. They don't have nationalist tendencies and are primarily motivated by financial interests. Harrison settles into his seat. The Prince's board looms above the ballroom floor on a makeshift stage. Harrison whispers to Carnival vice chair Howard Frank, sitting next to him.

[Mickey Arison]

Kind of feels like we're on trial rather than attending a shareholders meeting, right?

[Narrator (David Brown)]

Frank nods. But before he can say anything, the chair of the Princess board pounds his small gavel. Thank you all for being here. I call this meeting to order. Behind Arison, a man in a black suit stands up. Arison recognizes him as a representative of a retirement fund. I move to adjourn the meeting. A wave of grumbles and protests rises up from the private shareholders. The chair leans forward. There has been a movement to adjourn. We will now take comments on the proposal. Private shareholders swarmed the microphones that had been Set up on either side of the room. One woman approaches the mic and grabs it with two hands.

[Princess Cruises Shareholder]

I want to keep things in England and keep England strong.

[Narrator (David Brown)]

A man follows her. Carnival is crude and opportunistic. They'll ruin the Princess. Brad. The comments continue for hours. Arison sits there listening as more and more people disparage Carnival. Finally, the line of private shareholders comes to an end. From up on the dais, the chair gestures toward Harrison. Mr. Harrison, is there anything you'd like to say in response? Harrison's mouth goes dry. He's gotten much better at public speaking, but at his core he's still a shy introvert. He has nothing prepared. But Frank nudges Arison with his elbow and gives him an emphatic nod. Harrison has to speak. The chair offers Erison his own mic, so Arison clambers onto the stage.

[Mickey Arison]

Carnival is a brand builder, not a brand destroyer. We've taken over several cruise lines at this point, and I would argue that all of them have thrived under our leadership.

[Narrator (David Brown)]

A man yells from the back. Don't listen to him. Carnival's just trying to spoil this deal. Arison feels his patience snap. He whips his head to address the man who spoke.

[Mickey Arison]

If I weren't committed to seeing this deal through, would I have spent the past three weeks meeting with shareholder after shareholder and enduring your horrendous weather?

[Narrator (David Brown)]

From the front row, Carnival Vice Chair Howard Frank jumps to his feet. All we are asking is to adjourn the meeting. Give yourself time to consider both deals on equal footing. See what the regulators decide before you make a decision. You are out of order, sir. Frank sits and Harrison steps down from the stage, returning to his seat. This period for comments is over. It is now time to vote on whether to adjourn the meeting. Assistants pass out ballots to the hundreds of gathered shareholders. But as Arison looks around the room, he realizes that it's going to take hours to count all these votes. He checks his watch. It's late afternoon. He scrunches down into his chair, trying to get comfortable. He has a feeling he's going to be here late into the night. Harrison's right. The counting extends through the evening. The board arranges dinner to be brought in for the gathered shareholders. Meanwhile, the counting continues. Most people leave. Only a few Die Hards remain. Finally, at 4:30 in the morning, the chair makes an announcement. The shareholders have voted to adjourn. Arison leaves the room with a grin. Fifteen years ago, Richard Fane helped outmaneuver Arison and prevented Carnival from Taking over Royal Caribbean. But this time, Arison has won. Princess is going to be his. Over the next year, the Royal Caribbean offer expires. And with it, the poison pill. Carnival outbids Royal Caribbean and offers $7.3 billion to buy Princess. In April 2003, Princess shareholders vote to accept Carnival's offer. With the addition of Princess fleet, Carnival controls over 50% of the CR cruise market. It's a big blow to Richard Fane and Royal Caribbean. Over the next decade, the passenger count for cruises steadily rises. Cruise lines expand their sailing routes beyond the traditional departure points of Miami and San Diego, now including cities like Baltimore, Galveston and Seattle. In 2013, Norwegian Cruise Line finally goes public. Its IPO had been delayed twice before due to downturns in the market. It's a successful debut, raising nearly $500 million for the company. With its new capital, Norwegian buys two smaller cruise companies solidifying themselves in third place. Carnival is still the behemoth dominating the SEAS. But in the 2010s, the industry leader will face choppy waters. In 2012, a ship owned by Carnival subsidiary Costa Concordia hits a rock formation off the coast of Italy. 32 people on board die in the crash. A subsequent investigation reveals that the captain of the ship had deviated from the approved course and came too close to the shore. He's found guilty of manslaughter and sentenced to 16 years in prison. A year later, a generator catches fire on board the Carnival ship Triumph, knocking out the ship's power. The ship drifts in the Gulf of Mexico for four days, unable to steer. Their fear and frustration is coming out in phone calls and texts sent back to loved ones here at home. Pipes are busting. I know the sewer is backing up and like water is in the cabins, and it's just a nightmare. For those four days, the ship lacks air conditioning, lights, water, food and a working sewage system. Human waste backs up and floods the ship. Even running down the walls, it earns it the nickname the poop cruise. On social media, journalists uncover numerous reports flagging that the faulty generator was overdue for maintenance. Following the Triumph debacle, two other Carnival ships suffer from mechanical problems. Carnival has to cancel stops on the cruises and in one case, fly passengers home. Mickey Arison increasingly comes under pressure. It's an early evening in June 2013 in Miami, Florida. Mickey Arison bustles around his office in Carnival headquarters. There's a knock on the door. Mickey flings it open. Standing outside is the president of Carnival's board.

[Mickey Arison]

Oh, hi. You just got me about to head

[Narrator (David Brown)]

out you have a minute to talk? Arison glances at the time.

[Mickey Arison]

Sure, but just a minute. I gotta get to the game.

[Narrator (David Brown)]

Along with running Carnival, Harrison owns the Miami Heat basketball team who are currently playing in the NBA Finals. Right. Well, I'll get right to it. It's been a hard year for the company. Some problems out of our control. But there were some unforced errors. Arison grunts non committedly. He doesn't say anything, but he's pretty sure the President is referring to Arison's choice to attend a Heat game while the Triumph was adrift at sea without power. Harrison took a beating in the press for that decision, the President continues, and the chickens are coming home to roost. Bookings are down. Stock prices are down. Harrison sets down his briefcase, suddenly understanding where this conversation is going.

[Mickey Arison]

We've had a lot of discussions about secession and when exactly I would step aside. I take it the board has made a decision about that.

[Narrator (David Brown)]

The President nods. We think we need a reset. Show the public and our shareholders that we take all of the incidents that have occurred this year seriously. But I want to be clear. We're only talking about you stepping away as CEO. You'd still be chair of the board. Harrison is quiet for a moment. He's been in charge of carnival for over 30 years, and before that it was his father's company. It's hard to imagine Carnival without an Arison at the helm, but he knows he can't stay CEO forever.

[Mickey Arison]

I've always wanted to take up golf.

[Narrator (David Brown)]

The president sticks out his hand. We'll make sure the landing is soft. Arison looks at his watch. He has to hustle if he's going to make it to the arena by tip off. At the end of June 2013, Carnival announces that Mickey Arison will step down as CEO and longtime Carnival board member Arnold Donald will be taking over Carnival stock rallies in response to the change. Scandals continue to plague Carnival after Arison's departure. However, in 2016, Princess, now a subsidiary of Carnival, is slapped with $40 million in fines after pleading guilty to seven felony counts for illegally dumping waste into the seas. In 2019, they're hit with an additional $20 million in fines for more illegal dumping. The judge reprimands Carnival for continually flouting environmental law. But despite all the bad publicity, Cruising overall continues to grow throughout the 2000 and tens, and Carnival remains the top dog. And by January 2020, industry analysts predict the coming year will be cruising's biggest yet. They anticipate that 32 million people will cruise in 2020, up from 30 million the year before. But soon, everything. It's February 3, 2020. Captain Gennaro Arma stands on the bridge of the Diamond Princess. The ship is heading toward Yokohama port in Japan on day 13 of a 16 day cruise. The ship has made stops in Hong Kong, Vietnam and Taiwan, in addition to Japan. It's all gone smoothly, despite increasing reports of a novel virus spreading in China. The satellite phone rings and a crew member answers. After a moment, he turns to the captain. Extending the handset. Is someone from the Hong Kong Health Authority? He says it's urgent. The captain takes the handset. Captain Armor speaking.

[Japanese Health Ministry Officer]

I'm calling from the Hong Kong Health Authority. You had a passenger disembark here on January 25th. Okay. I'm calling to let you know that he has tested positive. Positive for coronavirus. Other passengers and crew on your ship have likely been exposed.

[Narrator (David Brown)]

But you said he disembarked on the 25th. That was nine days ago. How do you know he didn't contract the virus in Hong Kong after leaving the ship?

[Japanese Health Ministry Officer]

Well, he reported that he started exhibiting symptoms on January 19, one day before he boarded the ship.

[Narrator (David Brown)]

The captain hangs up the phone and doesn't say a word. But deep inside, he knows that his ship is now a viral hot zone.

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[Narrator (David Brown)]

It's February 4, 2020. A member of the Japanese Health Ministry follows a crew member down a corridor of the Diamond Princess. He wears gloves, goggles, and an N95 mask. Over his shoulder is a medical bag with digital thermometers and nasal swabs to collect stuff samples to test for COVID 19. He and the other members of his team have been sent on board to interview passengers and test for the new coronavirus. The Health Ministry officer clears his throat.

[Japanese Health Ministry Officer]

I know that passengers have been advised to stay in their rooms and you've canceled all scheduled activities, but what precautions are being taken below decks?

[Narrator (David Brown)]

What do you mean?

[Japanese Health Ministry Officer]

Are there any protocols being taken to stop the spread of the virus amongst the crew?

[Narrator (David Brown)]

Well, we're washing our hands more.

[Japanese Health Ministry Officer]

You don't have masks?

[Narrator (David Brown)]

I think the crew members working in the medical wing have some.

[Japanese Health Ministry Officer]

And you eat communally?

[Narrator (David Brown)]

Yeah, in the cafeteria. And we pretty much sleep communally. For many of us, we share cabins, bathrooms, and everything. The health officer nods. This does not bode well. He hopes that somehow no one else got infected on this ship. Otherwise, he worries that they could have a major outbreak on their hands. They reach the end of the corridor. The crew member knocks on the door of the farthest cabin. A man who looks to be in his 60s answers the door. He's pale and sweaty and he seems out of breath just from walking from his bed to the door behind him. His wife sits in a chair, her body wracked by a dry, hacking cough. Any hope the health officer had that this ship had escaped infection is quickly fading. He pulls out one of his thermometers.

[Japanese Health Ministry Officer]

I need to take your temperature.

[Narrator (David Brown)]

The passenger nods. The health officer holds the thermometer to the passenger's forehead. After a few seconds, it beeps 102.2.

[Japanese Health Ministry Officer]

You have a fever.

[Narrator (David Brown)]

The health officer looks past the man to his wife.

[Japanese Health Ministry Officer]

Ma', Am, you have a cough.

[Narrator (David Brown)]

The woman nods.

[Japanese Health Ministry Officer]

I'm going to collect nasal swabs from each of you and we'll test it for the the COVID 19 virus.

[Narrator (David Brown)]

Both the man and the woman nod, clearly exhausted. The health officer takes swabs from each of them, carefully labeling and securing the samples.

[Japanese Health Ministry Officer]

Thank you for your time. We'll be in touch with the results.

[Narrator (David Brown)]

As he and the crew member leave the room. The health officer hears a different crew member knocking on the door down the hall. He looks down and sees the crew member delivering room service to a cabin. She's not wearing any protective gear. A chill goes through the health officer. The more he learns about how a cruise ship operates, the more it seems like the perfect incubator for a virus. He feels fairly certain that there's already a major outbreak of COVID 19 on board. He pinches his mask tighter and knocks on the next door. 10 people initially test positive for COVID 19 onboard the Diamond Princess. The ship is ordered into a 14 day quarantine with passengers confined to their rooms. Eventually, more than 700 people are confirmed as having the virus and 13 people die as a result of the disease. It's the largest outbreak outside China, where the virus originated. But soon there are more outbreaks of influenza, like illness on board other cruise ships, including ones that were not sailing in Asia, implying that the virus is spreading rapidly around the globe and that cruise ships themselves are particularly vulnerable to outbreaks. Cruise company executives scramble to figure out ways to make cruising safe and to convince the government to allow them to keep sailing. It's early March 2020 in Washington, D.C. olivia Troy sits at her desk in the West Wing of the White House. She clicks through a spreadsheet tracking suspected outbreaks of COVID 19 on cruise ships around the world. Troy is exhausted. She's an advisor to Vice President Mike Pence. President Donald Trump recently named Pence the leader of the White House Coronavirus Task Force. Ever since, the days have been long and complicated as she and her colleagues have to navigate keeping Americans safe, balanced with a devastating effect on the economy of shutting whole industries down. The phone rings and Troy answers.

[Princess Cruises Shareholder]

Olivia Troy speaking.

[Narrator (David Brown)]

Ms. Troy, I'm calling from the Cruise Lines International Association. Troy sighs. The Cruise Lines International association is the industry's lobbying group.

[Princess Cruises Shareholder]

Look, I know you're concerned that the government is going to order all cruises suspended. All I can tell you is that the Vice President and the experts at the CDC are still weighing the best way forward. No decision has been made at this time.

[Narrator (David Brown)]

I understand that. I'm just calling to make sure you have all the relevant information about what our industry is doing to keep people safe. We've already had robust disinfecting procedures in place and we are increasing the frequency of those. Many of our ships are also installing plexiglass guards around the buffet tables and we are in the process of developing testing and evacuation procedures should anyone get sick.

[Princess Cruises Shareholder]

I appreciate the information and I will make sure to pass it along to the Vice president.

[Narrator (David Brown)]

If cruising is suspended, this would be financially devastating to all of our business. And I don't think I need to remind you how important cruising is to the economy, especially in Florida.

[Princess Cruises Shareholder]

The Vice President is very aware of the financial implications the suspension of cruising would cause.

[Narrator (David Brown)]

I know the Vice President is scheduled to come to Florida and meet with our industry leaders. Ma', am, if you could please urge him and the CDC to hold off on making any decisions until he has that meeting, I would greatly appreciate it. I think if he can speak to our chief executives and see just how seriously they're taking this, he'll see that there's no need to suspend cruising altogether.

[Princess Cruises Shareholder]

I will pass that message along.

[Narrator (David Brown)]

And as I'm sure you know, Carnival Chairman Mickey Arison's a longtime acquaintance of the President. If that affects anything.

[Princess Cruises Shareholder]

Yes, we are aware of that. We will let you know when any decision has been made.

[Narrator (David Brown)]

Troy hangs up the floor phone and gets back to work. She will suggest actions for the Vice president, but ultimately it will be his decision alone whether to suspend cruising. Troy doesn't envy him. Vice President Pence does agree to meet with cruise executives in Florida before making a decision about suspending cruising. After the meeting, Pence gives a press conference. He suggests that people over 65 and those with underlying health conditions that make them high risk for COVID 19 refrain from taking cruises. Cruise ships start implementing health and safety protocols designed to prevent Covid from spreading on board. And with those safeguards in place, many passengers still feel comfortable cruising. For now, It's March 6, 2020, in Buenos Aires, Argentina. Donna Mann stands in a long line of people in the Holland America terminal. They're all waiting to check in and board the Zaandam, which is about to embark on a 14 day cruise along the coast of South America. The passenger behind Donna shuffles forward, his bag nudging against her leg. Donna looks back.

[Mickey Arison]

Sorry.

[Narrator (David Brown)]

Donna nods. She's not upset about the bag bumping into her, but she's disturbed by what it seems says about how close the man is standing next to her. She's been following the news about COVID 19 and knows that experts are recommending people keep their distance. But everyone in here is bunched up as usual. Next to Donna, her husband, Jorge Hill, gives her a reassuring smile. Man does her best to smile back. She and Hill have flown all the way from California to take this cruise and she wants to enjoy it. Hill is 79. Man doesn't know how many more trips like this they have in their future. Someone in line coughs. Man winces. Hill takes her hand and squeezes it. It's going to be okay. Remember that email Holland America sent the other day? They're doing all sorts of health and safety checks. They won't let anyone with COVID on the boat, I'm sure. Man nods. And there's only been a handful of COVID cases reported in all of South America. We're probably in one of the safest places on earth right now.

[Princess Cruises Shareholder]

You're right. I'm just feeling paranoid. I'll feel better once we get checked in and go through all the safety protocols.

[Narrator (David Brown)]

The couple reaches the front of the line and a Holland America employee beckons him forward. Next, Hill and Mann make their way to the desk. The employee smiles at them brightly. Welcome to the Zaandam. May I see your passports, please, Helen? Man hand them over. The employee checks the expiration date.

[Princess Cruises Shareholder]

Great.

[Narrator (David Brown)]

Everything looks in order. Welcome aboard. Man looks at Hill with a frown. The email they received from Holland America says that employees would be checking passports to see if passengers had traveled to China and Italy, where COVID 19, was spreading rapidly. Passengers who had were warned that they would be subject to a more intensive medical screening. Neither man nor Hill had been to those countries recently, but it bothers man that her passport wasn't checked. The employee spins a tablet around so it faces Hill and Man. This is our health questionnaire. If you could please go through it and answer the questions. Mann skims through it. It's exactly the same as other cruise questionnaires she's filled out in the past. She doesn't notice any additional questions related to Covid. Behind man, another person coughs. Man closes her eyes for a second, calming her nerves, then goes about answering questions about gastric distress, fever, and chronic conditions. When they're done answering the questions, the employee quickly reviews it. You're all set. I hope you have an incredible voyage.

[Princess Cruises Shareholder]

Don't you need to check our temperatures?

[Home Depot Advertiser]

Nope.

[Narrator (David Brown)]

You are free to board. Man nods uneasily. She looks back toward the terminal door. It's not too late. She and Hill could leave. Go back home. Hill takes her hand. Come on. Man nods and follows him up toward the gangway. She tells herself she's just being a worry wart. Everything's going to be fine. Although cruise ships are allowed to continue to sail, government officials increasingly urge people to stay at home. Major events like south by Southwest in Austin, Texas, and Apple's Worldwide Developers Conference cancel their in person gatherings. On March 11, the NBA shuts down and people increasingly become nervous about cruising, especially passengers over 60, who make up the core demographic of cruisers. As more and more people cancel their passages, cruise ship companies scramble to cut prices and offer other incentives to entice people to come on board. But Covid continues to spread. On March 14, the government steps in. The Centers for Disease control issues a 30 day no sail order, shutting down all cruises departing from the United States. Other countries issue their own no sail orders, closing their ports. The entire cruise industry has just been grounded. It's March 14, 2020, in Miami, Florida. Carnival executives gather via video conference to discuss the catastrophe. Carnival CEO Arnold Donald kicks off the meeting first.

[Arnold Donald]

Whoever's dog is barking, can you go on mute? Thanks for that. All right. So I hope everyone is healthy and getting through this unprecedented event. Obviously, we're in a crisis. There's no sale orders for 30 days. But I think we can all agree, given the pace at which this virus seems to be spreading, that it will be extended. We just don't know for how long. John, I know you've done some calculations about how much money we're burning through every day we can't sail.

[Narrator (David Brown)]

Yes. Based on my preliminary analysis, we're set to lose 650 million every month that the no sale order is in effect.

[Arnold Donald]

I want to reassure everyone that we're doing everything we can to soften the blow. We'll borrow money, we'll sell older ships. Any government assistance that is offered, we'll take. But we need to brace for hard times. It's likely there will be furloughs and layoffs.

[Narrator (David Brown)]

Around the screen, Executives nod their heads.

[Arnold Donald]

Okay, Kelsey, where are we on the ships that are still out there?

[Princess Cruises Shareholder]

We're in touch with the captains on all our ships and working with the State Department and Homeland Security to try to find them ports and to get those who need more advanced medical care to hospitals. But no country wants to take in a boat full of sick passengers.

[Arnold Donald]

I need everyone working on this. If we can't take care of these people, the reputation of the cruising business could be destroyed.

[Narrator (David Brown)]

For years, the executives log off and get to work. The future has never seemed so tenuous. It feels to many like the entire industry is going to sink into the abyss. It's the night of March 24, 2020, off the coast of Peru. Donna Mann stumbles down the corridor of the Zaandam. She's dressed in her pajamas and the complimentary bathrobe provided by Holland America. The hallway swims in front of her and her left arm drags along the wall. Helping to support her. In her right hand, she clutches a bag containing her husband Jorge Hill's asthma medication. The hallways are deserted. More and more people on board have been getting sick, and two days ago, the captain ordered all passengers into quarantine confined to their room to try to stop the spread. Their room, which is about the size of a single car garage with one small window, feels more like a prison cell than a cabin. But soon it doesn't matter. Earlier today, man and Hill began to feel seriously ill. Man is exhausted, and every muscle in her body aches. Hill seemed worse, though, coughing and struggling to breathe. Neither could get out of bed. Man called the infirmary and asked for painkillers and cough medicine, but the staff member who answered said the ship was out of both. Mann implored the medical staff to please send a doctor to their room. She was especially worried about Hill, who is almost 80 and suffers from asthma and high blood pressure. Finally, in the evening, a doctor came by. She measured Hill's blood oxygen levels and announced that he needed to be moved to the medical ward immediately. He was transferred there with the help of crew members. A few hours later, Hill man got a call asking her to bring Hill's medications to the medical ward. She's on her way there now. She's so weak, she's not sure she's going to make it. She knows part of the exhaustion is physical. Her body is worn down from fighting off this virus. But part of it is the mental stress. No nearby port will allow the Zaandam to dock. There are people on board who desperately need to be transferred to a hospital, and man fears her husband is one of them. And for everyone, there's concern that they will run out of supplies. The captain and carnival executives are working to try to find somewhere for the ship to dock and a way to get more supplies on board. But man has no idea how long this will take. This was supposed to be a dream vacation, but it's turned into a nightmare. At last, man man reaches the medical ward. She knocks on the door, but no one answers. She tries again, but even to her own ears, the knock sounds faint. Man takes a deep breath and gathers her strength, pounding on the door as loud as she can. Her muscles scream at the exertion, and she feels like she might faint. But the door opens. A man wearing a surgical mask, his eyes bloodshot and his head hair damp with sweat, opens the door. Man holds up the bag of Hill's medications.

[Princess Cruises Shareholder]

I have Jorge Hill's medicine.

[Narrator (David Brown)]

The man doesn't say a word. He just points toward a bed in the back. Man makes her way to her husband, passing by beds of other sick patients. Hill is asleep, a tube through his nose providing him oxygen. Bright lights shine down on him. He looks pale and he strains as he breathes. Man sets the medication down on the bedside table and takes her husband's hand.

[Princess Cruises Shareholder]

Felt like such a blessing when we met. A second chance at happiness and my widowhood. We deserve more than eight years together. We have so much more life to experience.

[Narrator (David Brown)]

Man stops. She's out of breath and bone tired. She just hopes he'll hurt her and that eventually they will get off this ship and be safe and happy at home again. After extensive work by the State Department as well as Carnival, the Zaandam finally arrives off the coast of Florida at the end of March. Four people have already died on board and over 130 passengers are sick. Crew members have worked to the bone to care for their scared and sick passengers as the illness spreads among their ranks as well. It takes several more days of Negotiation before Florida Governor Ron DeSantis and local officials allow the ship to dock. Fourteen critically ill patients, including Jorge Hill, are transferred to local hospitals and placed in the icu. Those without Covid symptoms are put on flights home. Due to the restrictions, Donna Mann is not allowed to stay in Florida. With Hill, she returns home to Southern California while her husband fights for his life in his hospital room. Crew members are forced to remain on board the ship as Carnival works out how to repatriate them to their home countries. For many crew members, cruise companies that are at sea during the no Sail order decide the best way to get crew members home is to transport support them by boat. The cruise ships essentially become like the ocean liners of old as they begin the months long process of sailing the globe, dropping crew members off as they go. At 7:31pm on April 23, 2020, the lights in Mann's home suddenly go out for a few seconds. Later she learns that it's the exact Moment Hill died 3,000 miles away. Three other Zaandam passengers and one crew member died in Florida hospitals as well. With the dangers of cruising during the pandemic impossible to ignore, the no Sale order continues for seven months. More than 12 cruise companies close or file bankruptcy as a result of the shutdown. They're mostly smaller companies. Carnival, Royal Caribbean and Norwegian Cruise Line all make it through, but they have to go to extreme measures to survive roughly a year without revenue. They max out their credit lines, sell off stock and sell off their ships as scrap parts in October 2020. The CDC lifts the no sale order and allows cruise ships to embark on test runs with only crew members to see how well they can enact the strict health and safety protocols necessary to permit passengers on board. Carnival, Royal Caribbean and Norwegian Cruise Line start booking passengers for sailings again starting in 2021. They begin with cruises in Europe and Asia, and by summer have started sailing out of the United States again. Some of the protocols include requiring vaccination for passengers and crew, testing all passengers for COVID 19, requiring masks in public places, and reserving certain cabins to isolate any sick passengers. But even with new health and safety procedures in place, it's a rocky restart for the cruise industry. Not long after, sailings out of the United States resume the Delta variant spread, causing another round of outbreaks on ships. The companies scramble to adjust their protocols to mitigate Delta's spread. Many passengers are still wary of returning to cruising, and many ships remain out of service, causing the cruise companies to lose even more money. But finally, in 2022, business seems to look up. It's May 2022. In the Port Everglades Cruise Terminal, Florida. Holland America president Gus Antorcha stands in front of a dark ribbon being held by two crew members. Behind them are a gathering of crew members of the Zaandam. The ship made headlines in early 2020 as it struggled to find a port to land in as Covid spread among its crew and passengers. And Torcho wears a mask covering his nose and mouth. It's been a long two years for the world with lots of pain and suffering. But slowly, life is resuming. And nothing feels like a symbol of normalcy than bringing the Zaandam back into service. From here, the ship will head up the Atlantic coast for nine days until it reaches Montreal. He turns behind him, where a blind couple stands with their service dog. The husband holds an oversized pair of scissors. And now I'd like to introduce Cornelis and Connie Maranousen, devoted Holland America cruisers. With their dog Joska, they've spent nearly 700 days at sea. Cornelis Connie, it's a pleasure to welcome you back on board a Holland America ship. Will you please do the honors? Cornelis feels for the ribbon and snips it with his scissors. The crowd cheers, and with that, all of Holland America's ships are back in service, happy cruising. And Torcia steps aside. And members of the maritime crew prepare to welcome guests on board. And Torcia watches them go. After so much turmoil, things are finally returning to normal. The cruise companies faced dozens of lawsuits accusing them of being negligent in their reaction to the COVID 19 pandemic. Many were from passengers who got caught on cruises where outbreaks occurred, including the family members of passengers who died from contracting Covid on board. There are also lawsuits from crew members who were stranded on board ships as the companies worked to repatriate them to their home countries. They claimed that at times they were only fed bread and butter for a meal. Despite the tragic outcomes of cruising during the early days of the pandemic, the cruise industry has rebounded. In 2024, the number of passengers cruising is expected to surpass that of 2019, the first time the industry has exceeded its pre pandemic business. After all the tumult and backstabbing and thievery, the industry has settled into a status quo, far from a niche vacation for retired Floridians, cruising is a well established way of vacationing, ferrying passengers to ports around the world. But the major players? Well, they are the same. Carnival remains the master of the high seas, carrying 43% of all cruise passengers each year, while Royal Caribbean is in a distant second carrying 25% of passengers, with Norwegian Cruise Line in third place with 10% of passengers. Next time on Business Wars. We're setting sail with journalist Daniel Klein, founder of the online publication Come Cruise With Me to find out what's behind the industry's miraculous rebound and whether they can keep it up. Follow Business wars on the Audible app or wherever you get your podcasts. You can listen to all episodes of Business wars ad free by joining Audible from Wondery. This is episode four of Cruise Ship wars for Business Wars. A quick note about recreations you've been hearing. In most cases, we can't know exactly what was said. Those scenes are dramatizations, but they're based on historical research. If you'd like to read more, we recommend Devils on the Deep Blue Sea by Christopher A. Guerin and Cabin Fever by Michael Smith and Jonathan Franklin. I'm your host, David Brown. Austin Rachlis wrote this story. Our senior producers are Karen Lowe and Dave Schilling. Our producers are Emily Frost and Grant Rutter. Sound design by Josh Morales. Fact checking by Gabrielle Drollet. Voice acting by Zeke Alton, Bobby Foley, Michelle Philippe and Kieran Regan. Our managing producer is Matt Gant. Our senior managing producer is Ryan Lure. Our executive producers are Jenny Lauer, Beckman and Marshall Louie. For wondering.