Cruise Industry
Ahmed Bu Radhah
Pro. Ron Thompson
BUAD 330
Feb 5, 2017
A Brief Overview of the Topic
The cruise industry has undergone a number of significant changes from the days of tropical vacations and the days of transoceanic transportation, when the cruising services were only available to the domain of the elites in the society (Murphy, 2016). Today, the cruising industry has grown to a modern multimillion leisure and tourism industry, which provides an affordable option of vacation and a level of comfort, which is difficult to match for the average citizen (Chang, Park, Liu, & Roh, 2016). In addition, the number of people who cruise has been experiencing a significant increment over the years across the world.
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The alternatives and choices that have been provided by these companies include sailing vessels, smaller cruise ships, and yachts (Hung & Petrick, 2016). These alternatives and choices carry a few passengers to regulated ports, exotic destinations, and remote destinations, which are prohibited to larger ships of liners due to the concern of the effect of the influx of passengers on the local environment.
The changes that have occurred in the cruise industry need to be exhaustively discussed in order to understand the how the industry has undergone transformation over the years. As such, this paper will critically discuss the cruise industry and the changes that it has undergone over the years. This will help in providing information about this industry including its contribution to the global economy in terms of job creation among other positive and negative impacts that it has had on the global economy.
Outline of the Topics to be covered
The topics that this report will cover are as listed below:
Definition and Conceptualization of the Cruise Experience:
This topic will address diverse questions regarding the exact nature of cruise experience that have resulted into different interpretations and definitions of the aspects and realities round the cruise industry and service that it offers.
The development of the Cruise Industry: This topic will discuss how the cruise industry came into being and how it evolved into the modern cruise
Summary: 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. Now cruise industry is one of the most competitive across all.
* Travel agencies: Travel agencies have strong relationships with the cruise industry as they book around two thirds of their cruise. Although this percentage is declining due to the growth of consumer knowledge and technology the percentage of cruisers using travel agents is relatively strong. (UCLIA)
Carnival is “The World’s Most Popular Cruise Line” with 24 “Fun Ships” operating voyages ranging from three to 16 days in length to the Bahamas, Caribbean, Mexican Riviera, Alaska, Hawaii, Canada, New England, Europe, and Bermuda. Carnival’s success is attributed to its marketing program directed towards
There are both positive and negative impacts to cruising on different countries. Some can have a great affect on the ship and the area where the ship docks, others can have a negative affect on the cruise area itself and the people who live in and around the ports of call.
Carnival Cruise’s, Disney Cruises and Norwegian was the only other clear competitors to RCL but in terms of subsidiaries Crystal Cruises was the only direct rival in terms of size and scale and position in the industry but in analyzing the demand increase from 1999 to 2001 a 16.7% increase in demand showed that Celebrity cruises had to maintain their position as a luxury brand to continue being a major player in the industry. The demand was strong and the competition was average, as it relates to entries to market the cruise line industry requires multiple stipulations and regulations required thus unless one of the major players mentioned above acquired a smaller cruise line to increase in operations and services Celebrity’s position was relatively strategic and smart. The competitive landscape was relatively small so quality improvement process should be the main focus during this time, they already created the process needed to offer superior service thus tweaks such as management training, career progression programs and increases in standard of performance programs would set Celebrity’s consistent quality assurance position in the industry to better
The economic climate has a strong impact on the cruise line industry. However, the cruise line industry is growing and more people are traveling today then ever before. As welfare of people has considerably grown despite all possible crises in world economy, anyhow many economic factors are influence to cruise line industry, such as clientele's economic positions, growth in markets, currencies rates when working international and inflation plays a role. Operators of a cruise will be affected under management and operational levels. If fuel price begins to increase, then it will influence operational costs of the company. If interest rates increase then, then it will influence the income of the company. Economic factor plays a major role for the company to be afloat of cruise industry.
Cruise lines have been classified into three separate entities, luxury, premium, and contemporary. The three classification allow for choices on what kind of
South Florida’s ascendancy to the epicenter of the cruise industry began long before the modern cruise lines were born. Early in the twentieth century, a group of daring visionaries and entrepreneurs began to dream of expanding the local business community and creating new industries to take advantage of Florida’s climate with its sunshine and warmth. Chief among these businesses they envisioned a winter tourism trade but to realize this dream they would require a strong transportation infrastructure.
On February 2016, Royal Caribbean’s Anthem of the Seas sets sail off the East Coast of New Jersey with more than 6,000 passengers and 1,500 crew members on board (Almasy, 2016). The passenger ship sailed into a storm which threatened the lives and safety of everybody on board. According to CNN and other news agencies, a lawsuit was filed in a Miami federal court alleging the captain’s negligence in sailing into a well-publicized and forecasted storm. In another case, Royal Caribbean 's Explorer of the Seas was on a 10-day cruise in January when a fast-moving bug left nearly 700 passengers and crew stricken with vomiting and diarrhea. The CDC reports that this is the highest number of sick people reported on any cruise ship in two decades. Yet, in another report, the Eastern Star went down during a storm killing more than 450 people. It 's the deadliest boat disaster in China in almost 70 years Cruise Line Safety: In the last 5 years, approximately 1000 people have died on cruise ships which ran aground or sank (Ahmed, 2016). Ironically, there are a lot of people who will never get to experience of going on a cruise because of the fear driven by reports like the aforementioned. In actuality, cruise vacations have a higher percentage of satisfied customers than any other vacation experience. There are a number of compelling reasons why a cruise would be an ideal vacation for family and friends. Taking a cruise can have many different price ranges depending on the
Carnival’s value proposition was to be a cheaper alternative to land vacations at all inclusive resorts while providing a variety of activities and destinations in one trip. Carnival was the “fun ship”, providing contemporary vacationing to first-time and repeat cruisers. Because customer retention is low, Carnival uses a more traditional style of marketing, focusing on the short-term customer.
There are nine main cruise line, these include Ambassador International, Carnival Corporation, Crystal Cruises, Disney Cruise Lines, Louis Cruises, Regent Seven Seas Cruise Lines, Royal Caribbean Cruises Ltd., Silversea Cruises and Star Cruises (Cruising). The major cruises out of these are Royal Caribbean and Carnival Corporation. These cruises line are known for using their popularity to their advantage by raising their prices at any given time. But on the other hand, all the ships are comparable. All passage can anticipate the equivalent experience on board. In addition Rivalry is at a peek because getting rid of a cruise industry cost more than to just keep into development.
In 1972, Carnival Cruise Lines (CCL) was found by entrepreneur Ted Arison. Mr. Arison’s vision involved making cruising, a vacation experience once reserved for the rich, available to the all individuals. Carinal Cruise Lines achieved the ability to carry more passengers than any other cruise line, which lead to Carnival becoming the largest cruise line in the world. By 1987, Carnival Cruise Lines earned the distinction, “The Most Popular Cruise Line in the World.”
Presented exhibits determine four main segments of the cruise tourism market – contemporary, premium, luxury and destinations. The pattern of market segmentation in this market can be described as clustered preferences based on the natural market segments which will be discussed. It is important to note that major players in the industry develop several brands allowing them to cater to the different segments.
Economic, The economic influence is very important and powerful in the cruise industry. When there are changes in income this can mean a lot of differences. When the income will increase there is a possibility that more people will go cruising or do more cruises
The cruise industry has definitely evolved over the years to meet the changing demands and expectations of its passengers. The most important changes in the industry over the years are the introduction of shore excursions, new cruise routes and changes in the ships themselves. The first cruise ships offered few to no excursions while all the modern cruise lines offer over 100 excursions per cruise. These excursions can include participating in an actual boat race in Philipsburg, climbing waterfalls in Ocho Rios and scuba diving which is always very popular among passengers. They are designed to give the passengers a new and thrilling experience that they cannot attain at home. In the old days, the only cruise routes available were transatlantic and small European routes. The transatlantic route became unpopular in the 1960’s as air travel shortened travelling time from less than 20 hours by air versus four days by cruise. However, with the launch of newer,