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Carnival's CEO explains why millennials have taken up cruising by storm

Carnival's CEO explains why millennials have taken up cruising by storm

In just three short years, Carnival CEO Arnold Donald has transformed the company's image from a struggling cruise line operator into a personalized experience, especially for millennials.

This year's Cruise Travel Report revealed that a growing number of millennials and Generation Y travelers are embracing cruises as a method of travel. Cruise travel has now become the most popular travel preference for younger generations.

Millennials are also known for taking selfies, and Donald was ready to take advantage of that.

"How we capitalize on it is our product is just engineered for it," Donald told "Mad Money" host Jim Cramer on Friday.

Arnold W. Donald, CEO of Carnival Corporation featured on Mad Money with Jim Cramer on January 27, 2017.
Ashlee Espinal | CNBC

Donald has also embraced the power of technology, as Carnival unveiled its Ocean Medallion technology at the Consumer Electronics Show in Las Vegas. It is the world's first interactive guest experience platform that introduces a highly personalized level of customer service.

"We think this potentially is the wave of the future," Donald said.

There is no question that the Ocean Medallion could be a multiplier for earnings, Donald said. A guest can walk into a facility and everyone knows their name already. They can leave a drink at one bar, and go to the next, and the bartender will know what drink to serve them based on the record.

Moving forward, Donald said his goal is to deliver double-digit return on investor capital within the next two years and is prepared for any issues that could plague the cruise industry. In 2016 alone, the cruise industry battled concerns over Zika, Brexit, fuel, currency and a series of global political events.

Donald wasn't rattled, though. Carnival assumes these events will occur and have factored it in.

"We have more than doubled our return of investor capital in the last three years; we have more than doubled our earnings. We are on a path to do that regardless of those external things that can impact you in a given geography," Donald said.

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