Carnival weathered the travel downturn that followed September 11, 2001, better than most rivals, thanks to ferocious cost-cutting and an aggressive marketing campaign designed to keep its ships full at all costs. The king of cruises also outbid rival Royal Caribbean Cruises Ltd. for the right to acquire P&O Princess Cruises PLC, which strengthened its standing in Europe. Carnival has continued to roll out new on-ship services, from spas to steak houses. As tourism rebounds, Carnival is in the catbird seat: Profits rose 18% in a tough 2003, and are projected to climb 24% in 2004.