CRISIS COMMUNICATIONS ACTIONS OF CARNIVAL CORPORATION AFTER THE COSTA CONCORDIA CRISIS AND THE IMPACT ON COMPANIES REPUTATION

Example of weaknesses that Carnival Corporation & plc has is their safety record. In early 2012, the Costa Concordia struck off the coast of Isola del Giglio, Italy. In 2013, Carnival Cruise Line’s Triumph reported a fire, which left the ship adrift in the Gulf of Mexico (Carnival Corporation & plc SWOT Analysis, 2016). Among the other cruises, Carnival Cruise Lines have notably been the worse. In 2009, the Center for Disease Control tracked all major outbreaks, about 56% on Carnival cruise lines compared to a 48% average market share from 2009-2011. The company is also accounted for worse safety record for persons lost at sea. Since 2000, about 179 disappearances happened with Carnival Cruise Line alone (Levin , B., Jones, J., & Slade, T., 2012).

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

Copa Cruises - Welcome Aboard! Copa Cruises is a 40-year old company that offers dining and sightseeing cruises. What started with only one ship at Maryland’s Eastern Shore, is now a big business operating at multiple locations with 40 vessels. Copa operates scheduled tours at least twice daily during the peak travel/tourism seasons at each of its locations. The total number of scheduled tours varies based on the number of vessels available at each location. Copa also offers its ships exclusively for groups. In fact, a significant portion of Copa’s revenues come from group bookings. Typically, group customers book for corporate events, weddings, or private celebrations (e.g. family reunion). Copa customizes the table arrangement, the deck,

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 ninth brand that carnival owns is Fathom. Fathom is not your ordinary cruise. Fathom is classified as an impact travel, which means you travel to the Dominican Republic and Cuba for seven days and works side by side with local residents to improve the lives of children, families and the community. (What Is Impact Travel – Fathom) As of now Carnival Cruise Lines, Inc. has over 100 ships and another seven ships are scheduled to be delivered between January 2015 and March 2017. With many locations all across the globe from North America, the United Kingdom, Germany, Italy, and Australia. (Media Center)

After the crisis emerged, the company needs to establish a crisis communication team first. The team must consist of directors from various departments and high-level executives, especially CEO and crisis management experts. In this team, it is crucial to have a leader who could mobilize resources, make a decision and be responsible for all decisions. Everyone in the team is responsible for a unique issue.

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.

Carnival is a leader in the cruise industry and it’s highly likely that the consumers would select this company; as it is also a branded company recognizable on the market it allow the process of word of mouth that lessen the power of the consumers from their self.

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

Global social changes have also affected the way that Carnival Cruise Lines operates as well. As the global economy turns downward, the cruise industry continues to thrive (Global Demand for Vacation Cruises to Surge, 2012). This is due in part to the changes that they cruise lines have made. Cruises are now marketed as “get-aways from

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.”

Over the last few years, the cruise industry has been going through a number of changes. This is because there are more players in the market and many firms are offering aggressive pricing / packages in an effort to lure travelers. In the case of Celebrity Cruise Lines, the company had made a reputation for itself by reaching out to a core group of American customers. This accounted for 85% of the firms business, with 49% of clients as repeat travelers (who had used the company's services before). ("Celebrity

Product differentiation is one of the main strategies in order to face some of the risks; however, Royal Caribbean, as well as, Carnival Corporation and Norwegian Cruises are the most visible players in this industry. It is not easy to differentiate with their huge size, economies of scale. The industry is very lucrative, has high profit margins; hence, the level of risk is extremely high as well.

This report outlines the current crisis situation and provides a range of crisis communication strategies and methodologies that are suggested for use immediately.