Celebrity Cruises Case Study Essay

1070 Words Aug 18th, 2012 5 Pages
StudyBackground Celebrity Cruises was founded in 1989 by the Chandris Group, a Greek company originally in the shipping business. In 1997, the company merged with Royal Caribbean International to become part of Royal Caribbean Cruises Ltd. The parent company was determined to keep the two brand’s marketing and operations separate in order for each to target their own market segments. Royal Caribbean Cruises Ltd. operates not only Royal Caribbean Cruises but also Celebrity Cruises, Azamara Club Cruises, Pullmantur Cruises, CDF Croisieres de France, and TUI Cruises (Royal Caribbean Cruises Ltd., 2012). Celebrity Cruises is situated in the premium market segment between luxury cruise lines such as Crystal Cruises and mass-market lines …show more content…
Baby-boomers represent 53 percent of all cruisers worldwide and the market segment is expected to drive cruise demand growth. As shown in figure 1, baby-boomers are a large segment of the population that Celebrity Cruises can benefit from. Baby-boomers as a group are big spenders on travel. Vibrant Nation found that 42 percent of baby-boomer women would spend more than $2500 per person on every vacation (Creating Results, LLC., 2011).
Figure 1. Source: U.S. Census Bureau This market segment settles on family collectivity. As baby-boomers retire, they have the time and money to indulge their desire to travel and they are choosing to take those trips with their children and grandchildren. According to MMGY Global, 37 percent of baby-boomers with a household income greater than $50,000 who took a vacation last year did so with grandchildren (Tergesen, July). Celebrity Cruises can take advantage of this segment of the population by offering all-inclusive prices, and children’s programs, allowing families the flexibility to do things together or separately. Celebrity Cruises must also understand that extravagance does not necessarily support their service package. Although standardization achieved efficiencies in many areas across the fleet, 150 New Tastes with expansive menus, numerous daily activities, etc., is not what demanding cruisers are necessarily looking for. Having these extras upsets Celebrity Cruises cost

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