Business Analysis: KKL Cruise Liners Essay

This report will consider the appropriateness of the services offered in Jetstar for leisure travelers in its discussion, and will draw a conclusion on how certain concepts of these strategies can be utilized by managers at JS. Also, the interpretation of the different product strategies JS can implement. Lastly, the report will provide recommendations that could be implemented by JS for improvement to better understand the buyer’s characteristics.

Recently Qantas has partnered up with Emirates in an effort to channel Europe-bound travellers through Dubai International Airport in a mutually beneficially arrangement, an example of business-to-business geographic segmentation marketing. Qantas encourages tourism by broadcasting the same television and print advertisement to both international and domestic customers with iconic images of Australia. This is a marketing strategy that serves multiple purposes, it stimulates Australian tourism abroad while firmly associating Australia with Qantas and also encourages ‘brand loyalty’ from Australians who wish to support their country. Because of the large variety of airlines both internationally and domestically, Qantas has marketed themselves towards service; they are the only “full-service” airline in Australia.

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

◦ If the asset group is tested for recoverability while it is classified as held

Disney Cruise Line takes advantage of the rhetorical appeal of kairos to get people to go on their cruises. One of the ways they use kairos is through the description of their new cruise. The company states, “For the first time in the summer of 2014, Disney Cruise Line sails to Europe with over a dozen ports of call dotting the sunny Mediterranean,” (Disney Cruise Line 24). Disney appeals to kairos by pointing out the fact that this is the first time they are offering this type of cruise. People are often more eager to go on vacations if they believe they are going to be some of the first people to have that experience.

Lastly, an alternative that can be taken is to build relationships with various large companies with employees who make an income in the target range and make offers to company executives. This method would not downplay the company image because Cunard would be communicating directly with high-income executives and furthermore will not be making any public sales or advertisements. This method would create new potential customers who are directly in the target market of choice using the method of relationship building. This may also result in additional customer retention. This method can be used for both the four and five star ships. In order to attract the target market of the five star ships, Cunard can make an arrangement with a company to offer a deal with their luxury ships as part of a retirement plan.

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.

In summary, the low price sensitivity, low buyer concentration and the leadership of Carnival in the cruise industry on one hand enhances the buyer power while a high degree of involvement of travel agency on the other reduces their bargaining power, the power of buyer of the buyers in the cruise line market of Carnival is moderate.

There are large barriers of entry into the cruise businesses. Ships are extremely costly and time consuming to build.

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.

The cruise-line industry has changed drastically over the past several years. What was once thought of as a luxury to most people, is now affordable and convenient. The industry now focuses on targeting the working middle class, as well as the upper class. One cruise-line in particular, Carnival, has mastered the informal cruise for the mass market. Carnival offers numerous cruises that are inexpensive and exciting. Nevertheless, Carnival operates internationally with shipyards and ports all over the world. Being an international business, Carnival is affected by many global forces, both controllable and uncontrollable. In order to maintain the corporation’s success, Carnival must be aware of all global forces while

The buyers of the services of travel agencies are consumers, that is, individuals and businesses. For this industry we are dealing with a small degree of concentration, due to the wide range of services.