Abstract This work evaluates the cruise industry, specifically the Carnival Cruise, Norwegian Cruise and Royal Caribbean companies. The evaluation uses Porter's Five Forces model to explore competition in the industry, the bargaining power of suppliers and the bargaining power of consumers. It also addresses whether the industry has substitute products and if there are new entrants into the industry. This work additionally answers the question of 'how intense is the rivalry' and whether there is a forecasting method that can be used to predict where the industry is going.
Outline:
Introduction
Porter's Five Force Analysis
Porter's Five Force Analysis Summary
Bibliography
Includes charts and graphs
Figure 1 - Forecasted Value Worldwide per Segment, Hotels, Resorts and Cruise Lines (in billion dollars) 2003-2008
Figure 2
Average Growth Rate 1980 - 2004
Figure 3
Passengers Percentage Change 1974 -2004
Figure 5 Cruise Ship Order Book as of January 1, 2004
From the Paper "In an April 27, 2006 report entitled: "Cabin Fever - Smooth Times Ahead for the Cruise Industry" John Zamora writes that: "...there's plenty of room for growth in the cruise industry. Currently the number of tourists worldwide who book cruise vacations stands at around 13.4 million, representing about 1.8% of the total world travel market, as estimated by the World Tourism Organization." (2006) Zamora also writes that: "Far from being disappointed at this current level of market share, the industry fully recognizes the opportunities ahead as operators expand into new types of cruises (including the niche budget option); set their targets on different demographic groups; and, head for new waters." (2006) In a November 14, 2005 report entitled: "Which Way is the Travel Industry Headed?" it is stated that a Senior Analyst at eMarketer and author of the Online Travel Worldwide report, Jeffery Grau states: Without question, the Internet has shake up the status quo in the travel industry...Traditional travel agencies are struggling to stay relevant, online travel agencies are trying to instill loyalty among their customers,. travel search engines are the new upstarts, travel suppliers are flexing their muscles and global distributions systems are looking for way to recover their waning influence." (2005) In a report entitled: "Cruise Line Industry: Trends Opportunities for Canadian Exporters 2005" reported is a case study in which the researchers conducted interviews with 21 cruise line purchasers, chandlers, distributors and brokers findings stated in the report include the facts for Worldwide per Segment Forecasts including the cruise lines shown on the chart in Figure 1."
Abstract The paper relates that the cruise line industry has been experiencing a period of massive expansion over the last decade, thus heightening the competitive profile for the industry in terms of market share and competitive rivalry. The paper evaluates the industry competitors: Carnival Cruise Lines, Royal Caribbean and Norwegian Cruise Line. The paper provides a competitor profile matrix that shows Carnival Cruise Lines' market dominance.
Outline:
Industry Overview
Industry Competitors
Competitor Profile Matrix
Product Differentiation
From the Paper "The cruise line industry has been experiencing a period of massive expansion over the last decade. By some estimates, the cruise industry in the United States (US) alone has generated more than $32b during 2005. Such revenue ensures that the cruise industry remains one of the most competitive across all markets. Even smaller markets have been experiencing an increase in cruise industry operations. The Canadian market has seen some ports exceed more than 90 cruise ship callings on an annual basis and this is a considerable amount of traffic for a traditionally smaller market. Thus, the competitive profile for the industry has heightened in terms of market share and competitive rivalry."
A look at the questionably bleak future for the cruise line industry following the September 11th attacks, in context of the tourism industry as a whole.
Abstract This paper claims that while the immediate future looks not too promising for this industry, the long term looks good. Three main reasons for this statement are given. First, the cruise line industry has been a leader in the steady growth being experienced by the entire travel segment for the last ten years. Second, the industry is seeing expanding markets in Europe and new markets emerging in Asia. The third reason to expect long term growth is that the cruise lines are now offering their customers a wider variety packages at different lengths and price ranges. This has helped them to expand their market into lower income level clients. An overview of the market is provided.
From the Paper "The key strengths of the cruise line industry are its high desirability among consumers. Cruises appeal to the American public's sense of adventure. The second strength is that cruise lines have shown a great ability to adapt their product to meet popular social trends and expand into untapped markets. The recent trend to offer a wider variety of entertainments and the recent popularity of "Theme Cruises" has been a valuable asset. The offering of various priced cruises is also evidence of the industry's ability to adapt and as a result expand their market. The expansion into foreign market is further evidence of this strength. The cruise line industry has demonstrated the ability to not only identify new markets, but to capture them as well. A third strength is that the cruise line industry operates at 100% capacity (Farley, 2000). In order to expand their market cruise lines need only to build more ships. "
Tags: 911, ship, tourist, cruise, industry, holiday, investment, market, entertainment
Abstract This paper reviews and discusses Disney Cruise Lines. The paper focuses on the company's marketing strategies and discusses possible improvements. According to the paper, in suggesting improvements to Disney's Cruise Lines marketing strategies, the potential for greater levels of integration with the core branding of Walt Disney Company needs to first be considered.
From the Paper "Fifth the Disney Cruise Lines need to underscore safety and security in their cruising activities and programs. The cruise line had several instances of dozens of passengers getting ill during 2005, and this did have a temporary but significant effect on earnings according to Citigroup (2006). The cruises through the Mediterranean are also potentially risky as the areas the Disney ships, icons of American influence, will need to be protected or at least managed carefully in foreign waters and will need to be very cognizant of local political conditions before setting sail for a foreign port. "
Abstract This paper presents a brief history of the Royal Caribbean Cruise company, which includes a discussion of the other cruise companies that merged to create the Royal Caribbean Cruise company, a look at innovative ideas that the company introduced into the cruise industry, a description of its expanded fleet and its growth over the years and a look at company financials.
From the Paper "The sixties were a time of tumultuous change in the world, and the travel and leisure industry was no exception. Just before the end of the decade, three Norwegian shipping companies, Anders Wilhelmsen & Co., I.M. Skaugen & Company, and later Gotaas Larsen, came together to found a cruise line, Royal Caribbean. This new venture was formed with the goal of creating a line of custom ships with amenities aimed at a new industry, pleasure cruising."
Abstract The paper relates that Carnival Cruise Lines is the largest and most successful cruise line in the world. The paper provides a brief history of Carnival Cruise Lines and analyzes their image design. The paper discusses how Carnival Cruises has been plagued by a number of scandals recently, including a health scare and its controversial contract with the Hurricane Katrina relief operation. The paper considers that when it comes to the leisure industry, given the escalating cost of family vacations, many people are willing to put aside personal quandaries if their own experience is pleasurable.
Outline:
A Brief History of Carnival Cruise Lines
Image Design: Visual Identity and Integrity
Processes, Policies, Community Involvement: Building an Image
From the Paper "A press release detailing history of the cruise line states that Carnival began in 1972 with a converted transatlantic ocean liner called the T.S.S. Mardi Gras. Given that the cruise line was later to enter into a controversial contract with the federal government to provide shelter in some of its cruise ships to Hurricane Katrina evacuees, this name seems ironic in retrospect. (Weisman, 2005) The mission of Carnival's founder Ted Arison was to make the elite mode of travel aboard large luxury vessels, a "vacation experience once reserved for the very rich," now "accessible to the average person." ("34 Years of Fun," 2006, Carinval.com)"
Abstract This paper discusses considerations that need to be taken into account by the cruise ship industry. It particularly discusses the Grand Turk Cruise Center. It describes the tourist's role, customer satisfaction and on and off board problems. The paper then discusses potential changes for the future and how these would impact the cruise ship industry.
Table of Contents:
The Grand Turk Cruise Center
"She's Here"
"Full Satisfaction"
Grand Turk Cruise Center
Sampling of Sights Grand Turk's Perks
II. Ideas Regarding Relationships and Environment
The Tourist Role
The Small Caribbean Islands
Stay Away
"What's new?"
Pressure to Grow On
Caribbean Tourism: A Blight or a Blessing?
On and Off Board Problems
Fragile Balances
Discharged Pollutants' Safety Status
Societal Choices
Turtles in the Turks and Caicos Islands
III. Choices for Change
Features from the Present; Traces from the Past; Signs of Future
Artificial Versus Authentic
Stiff Solutions
Hidden Costs
Looking Back for Future Inspiration
From the Paper "Mega-ships regularly dump pollutants illegally. Cruise ships environmentally generate horrific amounts of "sewage, oily bilge water, solid waste, grey water ("down the drain" waste) and hazardous wastes," Roberts states. Waste disposal management, as well as disposal of these wastes is only sometimes enforced and most of the time improperly regulated. International environmental practices are minimal in the industry. Federal and local laws which govern waste discharges into coastal waters have not "teeth." (Roberts)"
"Cruise ships generally transport approximately 2000 passengers. The largest ship can accommodate 5000 individuals, simultaneously sailing in international waters under flags of convenience. Frequently, some crews ignore labor and international maritime standards, utilizing opportunities to abuse labor rights, as well as environmental regulations. (Roberts)"
Abstract The paper shows how the Big Wave Cruise organization must make some significant changes to their human resources strategies in order to become more competitive in an increasingly competitive industry. The paper discusses how the organization does not have the level of employee commitment to the organization that is so critical to its success. The paper contends that Big Wave Cruise must address the training issue currently plaguing the company, the perception and/or reality of an excessive workload on employees and the unacceptable compensation plan.
Outline:
Introduction
Division of Labor at Big Wave Cruise The Perception of Lack of Skills by Big Wave Employees
The Perception of Excessive Workload by Big Wave Employees
Inadequate Compensation Received by Big Wave Cruise Employees
Conclusion
From the Paper "The cruise industry is a hyper-competitive industry, as the Big Wave Cruise organization has discovered. Even with the phenomenal growth rate of the industry, Big Wave has felt the increased competition as competitors enter the market with newer ships, better technology, and more exotic destinations. Add to this challenge the increased demand from customers for higher levels of customer service, including 24-hour entertainment options and catering, and it becomes clear that even a well positioned cruise line is bound to feel the strains from increased threats in the industry. For Big Wave Cruise, these threats are compounded by internal weaknesses specifically within their human resource strategies."
Tags: employee, compensation, competition, training
Abstract This paper considers two brands, Cunard and Disney Cruise lines and the effectiveness of their marketing strategies. It looks at the background of the cruise industry and the intense competition between cruise lines.
From the Paper "The cruise industry has grown significantly in the past years with greater numbers of individuals enjoying various cruises, larger and more luxurious ships and the definition of cruising ..."
Tags: marketing, cunard, disney cruise lines, brands, brand marketing
Abstract This paper outlines a marketing plan for distributing Princess Cruise Lines' new ships and product lines. The plan is designed with the purpose of helping the company maintain its position as a leader in the mass market cruise industry and addresses four marketing segments.
Market Segmentation
Product (Tangible)/Service Mix
Pricing Strategy
Communication Strategy
Distribution Strategy
From the Paper "Norwegian, Carnival and Princess are known as the "big three" in the mass-market cruise line industry (CHT Cruises & Tours). Cruises offered by these lines are considered "four star" with high levels of comfort and customer satisfaction as their main selling points (CHT Cruises & Tours). The cruise line industry is divided into three major market segments, Luxury, Premium, and Budget Class (GalaxSea Cruises & Tours of San Diego). Carnival recently acquired Princess and this will allow princess the ability to use Carnival's multi-brand marketing strategy (USVIC). Princess is considered to operate in the Premium class of the three major market divisions."
Abstract This paper provides a marketing audit of Carnival Cruise's current sales and marketing operations. The paper describes the company and offers its recommendation that Carnival Cruise should develop an advertising platform that transfers across markets and media regardless of target market and segment. The paper discusses the evaluation and control of this proposed strategy.
Outline:
Executive Summary
Company Description
Marketing Communications Analysis
Recommendations
Implementation Plan
Evaluation and Control
From the Paper "Ted Arison began Carnival Cruise Lines' operations, the parent corporation of Carnival Cruise Lines, in 1972. His son, Micky Arison, is the current Chairman of the board and CEO. Carnival Corporation operates 12 cruise lines and 75 ships which cover four North American markets as well as Europe of which 20 belong to Carnival Cruise Lines. The parent company, Carnival Corporation, owns numerous cruise lines, which are all branded separately. For fiscal year 2005 Carnival Corporation, the parent corporation of Carnival Cruise reported $11,087m in total revenues and almost 7m passengers carried."
Abstract The cruise Industry is growing rapidly, but if there is one thing that threatens to undermine its progress, it is lack of accountability in this segment of leisure travel industry. This paper first examines the growth of this industry and later highlights the key problems that need to be resolved effectively to protect the industry from possible disintegration and decline in future.
From the Paper "It is believed that no segment of leisure travel industry is growing as fast as the cruise industry. According to an estimate by The Cruise Lines International Association, number of cruise travelers went up to 6.5 million in the last few years of 1990s, which was a 51 percent increase from 1995 (Sloan, 1999). One of the best and most productive years for this industry was 1998-1999 when the number of cruise travelers increased rapidly. During this years, occupancy rate was 91% while the five millions passengers opted for cruise travel instead of regular travel. (Corzo, 1999) In 1999, number of passengers increased dramatically thus paving way for further growth in the coming years. But the while the industry on the whole grew steadily during 2000 and 2001, a decline was noticed in number of American passengers as operators look towards Europe for more business and profits."
Abstract This paper examines the cruise industry. It addresses how a particular product is promoted using television, radio and the Internet. The paper identifies the promotional message and discuss how the message is being conveyed and how it appeals to their target market. The paper also explains where in the product life cycle the product is and how that affects the pricing strategy.
From the Paper Product Promotion Leisure Cruising. Introduction. According to a report in "Inside Cruising, A Guide for Travel Professionals" the cruise industry is one of fastest growing sectors of the American leisure market. It has experienced more than two decades of spectacular revenue growth. For example the industry carried over million passengers worldwide which represented a percent increase from the previous year."
Abstract The paper looks at the key success factors of Carnival Cruise Lines. The paper discusses their comparative advantage of sales and marketing benefits it maintains with its numerous sister companies. The paper provides a customer/market analysis and relates that for future growth, Carnival must identify further segmentation strategies that will allow them to market directly to more defined sub-populations.
From the Paper "Carnival Cruise Lines has branded itself as the "fun" cruise line where fun is the main priority and the amenities are second. During Carnival's inaugural voyage at its founding, its converted transatlantic liner ran aground on a sand bar. It was due to this mishap that the management gave everybody free drinks. The observation was that everybody had "fun" and thus, began Carnival's legacy of the "Fun Ships" ("Power"). Carnival never wavered from its commitment to its brand and expanding its brand equity. Based on Carnival's research most people go on vacation to have fun. Having this information influenced its designing of their ships. Carnival clearly spends more money on asthetics then comfort, spending 25% - 30% less on beds than their competitors. Carnival feels that spending this amount on the bells and whistles offered a better return on investment (ROI)."
Abstract This paper provides a a step by step account of how Carnival Cruise Lines has earned the dominant position they have today in the tourism industry through strategic alliances, marketing and how they have used technology to leverage their competitive advantage. It focuses on their efforts in four areas: being family orientated; being environmentally friendly; convenience and customer service; and their affiliations and strategic initiatives and shows how through these efforts customers stay loyal and come back in the future on one of their other cruises.
From the Paper "Carnival Cruise management have a strong ability to recognize social trends such as the need for short 3-5 day vacations (mini-vacations) and have invested in travel and tourism related companies to help them offer the best vacation in that short time period. For example, Carnival purchased Cunard Line Limted And Airtows PLC to help compliment their cruises with land activities. This is given Carnival the ability to fully control and create packages for three different adventure categories that are truly unique to Carnival such as Dog Sledding in Alaska. Management has also been able to align itself with companies such as Universal Studio?s."
