41 people have been tested positive for coronavirus.

It's never gonna happen to me, couldn't happen to me.

That's what me and my friends were saying on the ship.

All guest please stay inside your staterooms

and do not go outside of your staterooms.

You just feel desperate when you're at sea.

Who's gonna let us disembark?

I don't think that they were terribly transparent

about what they knew when they knew it.

Carnival is, of course, the biggest cruise company

in the world and since this began,

their ships, more than any other company's

have been struck by these outbreaks of COVID

on board.

Hundreds of passengers on these ships

have been infected and some have even died.

And Bloomberg Business Week has been reporting in depth

on what went wrong and what's next for Carnival

navigating this very challenging crisis.

On February 3rd, the Diamond Princess

was around the coast of Japan.

It had made stops in Hong Kong,

it had gone to Taiwan and elsewhere.

It was suppose to be our last night on the cruise.

We were suppose to get off the next morning.

Around 6:30 that night, an announcement comes

throughout the entire ship.

A Hong Kong resident,

who traveled for five days on Diamond Princess

from Yokohama to Hong Kong tested positive for coronavirus.

Dear God. As you can see,

ladies and gentlemen, the situation is under control

and therefore, there are no reasons for concerns.

That's really when we knew that we probably

were not getting off the ship that next morning.

So, the ship cruises toward Japan

and finally anchors in the evening of February 3rd.

At that point, Carnival says the Japanese health officials

came aboard and started doing temperature checks,

health screening.

Unfortunately, according to passengers

this wasn't a really serious quarantine.

Passengers said that they were free to go about the ship.

My cabin mate and the other two guys

that we were traveling with were in the cabin next door.

They went out and they had a grand ole time that day.

You know, as most people do.

Eating in the restaurants, watching the live house bands.

Eventually, they find out that there is actually

cause for concern.

The Ministry of Health has notified us

that 10 people have tested positive for coronavirus.

All guest return to their cabin and remain there

for the time being.

We have confirmed 10 positive cases

and based on this, we are going to quarantine

the entire ship for a minimum of 14 days.

So, that's when it officially began.

We are currently in the middle of day two

of the 14 day long quarantine.

It is currently day three.

Apparently, 41 new cases on the ship.

There are 38 new people who have tested positive.

44 new cases.

66 additional positive cases of coronavirus.

We continued to see the numbers go every single day.

It was an emotional roller coaster.

In the end, more than 700 people were infected

and tragically, at least 11 people ended up dying

and this was just the beginning of the crisis

for this company.

I wanna highlight one of the most impressive

turnover stories of our year.

If not the most impressive turnaround.

I'm talking about Carnival CCL.

The world's largest cruise line.

Are you bigger than the U.S. Navy?

You know, that's a good question.

I never compared number of the ships but I doubt it.

The cruise industry is really massive.

Carnival Cruise, they say they see about

13 million people annually.

This is a booming market.

People love to cruise.

We've probably done two dozen cruises.

Sometimes we've done two or three in a year

if we're lucky.

Cruises are the perfect combination between

being convenient, being affordable, and allowing you

to just relax,

You pack once, you unpack once.

Your hotel moves with you, your restaurant moves with you.

Carnival is specifically, they own about

30 or 50% of the market.

Their annual revenue amounts to about 20 billion dollars

More recently, Carnival has run has run into some troubles.

You might have seen in the news in the 2010s.

They had a boat that capsized and actually sunk.

Killing about 30 people.

And then later on, they had a very high-profile incident

in which they lost power on the ship

and none of the plumping worked.

But under Arnold Donald, who is the current CEO of Carnival,

they've undergone a remarkable turnaround

since about 2013.

The more we give people the opportunity to connect

and experience the world together,

the more spectacular our world will be.

You saw the market Cap in the first five years

under of his tenure,

essentially doubled to about 50 billion dollars.

Ironically, leading into this whole crisis

that we've seen, you had Arnold Donald

promising that he was actually gonna correct things,

he had a plan in place to fix all these shortcuts

that Carnival had historically been taking.

Our task, our mission, double digit return

investment cap in the next three, four years.

Well, I wanna congratulate you on the textbook turn.

The whole trend has been up.

After the Diamond Princess ship,

about a month passes and then another ship,

the Grand Princess, they deal with essentially

the same crisis.

We boarded the ship in San Francisco and.

We did think there would be a little more enhanced

screening because of what had happened

on the Diamond Princess.

At a minimum, we thought they would have at least

taken our temperature as we boarded the ship

but that never happened.

And things just kind of exploded on our way home.

The first test are in and the coronavirus

is onboard the Grand Princess.

The Coast Guard delivered test in dramatic fashion.

And 21 people tested position for virus.

It just kind of escalated--

Quickly. Quickly.

They, you know, sequestered us and delivered food to us

in our rooms, and obviously, that was a major shock

of something's wrong.

So, like the Diamond Princess in Japan,

which they sailed immediately back to port,

the Grand Princess headed back to their home port

of San Francisco.

3,500 people stuck in that cruise ship off the coast

of California, they will finally be coming ashore.

All passengers and crew

will be tested for the coronavirus.

Those that need to be quarantined will be quarantined.

In the end, it proved a much smaller outbreak

than the Diamond Princess,

but that's most likely because not everyone chose

to get tested.

In the end, more than 130 people tested positive.

And at least five passed away.

As these issues are happening aboard the Grand Princess,

another ship owned by a different Carnival Cruise line,

which is Holland America Zaandam, is sailing around.

The cruise basically set sail,

more or less the same day that the U.S. State Department

warned people not to be going on cruises.

And the company just forged ahead with the cruise.

For some reason, they decided to keep going.

Life was good that first week.

Everything was great but I saw a friend's picture

about having issues getting toilet paper

and other things.

I was kind of concerned as to how this was gonna play out.

March 14th, the ship received word

that Chile was planning to close its ports

to any cruise ship and from then on out,

that ship was at sea with nowhere to port.

On March 22nd, the captain came on the announcement

and said, we have people sick with a flu-like illness,

everybody's gotta be confided to their quarters.

The whole ship's going into quarantine.

From March 22nd was kind of a,

I guess a different feel.

Didn't feel like a cruise anymore.

Sometimes I sat out on the deck at night

and I would just listen to the waves.

Now, sadly sometimes I listened also to a cascade

of people coughing.

After everybody was confided to quarters

for a few days, the captain came on the announcement

and said, you know, we're sorry to report

that four people had passed away over the last couple days.

So many crew on the Zaandam were getting sick,

that they were having trouble taking care

of all the passengers, and so the company made the decision

to bring in another ship called the Rotterdam.

And started ferrying passengers, five, six, 700 passengers

who seemed to be less sick.

They put them on the Rotterdam.

So, now they had two ships full of passengers

that could not come to port.

Panama didn't even want them to go through the canal.

Finally, the Panamanian Government decided

after all to let them go through the canal

and that's what happened.

Both their ships passed through the Canal

and they slowly made their way back to Florida.

After days at sea, with their fate up in the air,

a pair of Holland America cruise ships

were given clearance to dock at Port Everglades

Thursday afternoon.

Yay, we're back home.

Back to the States.

There were quite a number of people

that were actually sick and they were taken to hospitals.

And of course, they were those four people who passed away

that had be taken home, or find a way home.

We've gone through Ebola, Zika, MERs, SARs,

the industry, because we're global,

we have to deal with this stuff.

You know, it's been devastating, temporarily,

but the long-term future will be great,

as long as we all stand together.

So, since this crisis began,

Carnival, its business has really been suffering.

We've seen its stock really plummet quickly significantly.

We spent weeks talking to company executives

and the company was really upbeat and positive,

if not defiant.

The CEO, Arnold Donald kept saying,

look, back when this affected our first ship,

the world still hadn't known about coronavirus yet.

In his words, it was still a China issue.

We talked to the CDC,

we talked to the head of their Cruise Ship Task Force,

Dr. Cindy Friedman.

And she said, that excuse does not fly.

It would be one thing if it was only aboard

the Diamond Princess or even the Grand Princess,

those first two ships.

But the fact that this crisis continued

to affect Carnival afterward,

essentially Carnival should have known better.

I look forward to cruising again one day.

But you know, I realized the paradigm has changed.

It's very easy to say would you ever cruise again,

but I'm wondering, well, what's the world gonna look like?

Will we ever be going to concerts,

sporting events, you know it's not just cruising.

One thing that I do agree with Arnold Donald on,

he said this is an unprecedented generational

global event and I think that's totally spot on.

And in the years ahead, we're gonna look back

and we're gonna say who responded to that generational