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Carnival Cruise Lines, a unit of Carnival Corporation (CCL - Analyst Report) has entered into a partnership with Dr. Seuss Enterprises to provide a variety of exciting and immersive dining and entertainment experiences on its fleet of 24 "Fun Ships”. The Carnival ‘Seuss at Sea’ program will bring in the amazing world of Dr. Seuss and its constituent characters to Carnival’s fleet. Dr. Seuss Enterprises produces a variety of toys based on characters from Dr. Seuss books such as The Cat in the Hat, Horton Hears a Who!, Green Eggs and Ham, and How the Grinch Stole Christmas!.

Apart from The Green Eggs and Ham Breakfast, the guests on the ship will begin their day with other exciting breakfast foods like moose juice and goose juice, colorful fruit and pancake stacks, funky French toast and more. Moreover, Dr. Seuss characters such as the Cat in the Hat, Thing One and Thing Two, and Sam will accompany the guests at breakfast to entertain them. Every Fun Ship will have a selection of classic Dr. Seuss books, toys and themed activities.

The company will first begin incorporating these facilities on its ship Carnival Splendor in Feb 2014, followed by rest of the fleet in 2015 and Carnival Vista which is expected to sail in early 2016.

Additionally, the company intends to incorporate a Dr. Seuss Bookville facility, a Seuss-themed play space featuring iconic decor, colors, shapes and funky furniture. This feature will exclusively be for the company’s fun ship “Carnival Freedom” that is under renovation and Carnival Vista, when it enters service in early 2016.

Carnival is the largest and historically the most profitable cruise operator in the world. The company’s fleet carries approximately half of the total number of kids carried by the entire North American cruise industry. This Seuss at Sea initiative will strengthen the company’s position. Moreover, the company’s several brand-building efforts and other marketing promotions are expected to be beneficial, going forward.

However, a sluggish European economy and lower consumer confidence in both North America and Europe threaten bookings. Moreover, higher operating costs owing to increased marketing spend remain a major threat to margin expansion.  Carnival Corporation presently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the industry include Regal Entertainment Group (RGC - Snapshot Report), SeaWorld Entertainment, Inc. (SEAS) and Interval Leisure Group, Inc. (IILG - Snapshot Report). All these stocks hold a Zacks Rank #2 (Buy).
 

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