Celebrity Cruises Essay

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.

Carnival Corporation & plc is a global contender with the title of the world’s largest cruise and leisure travel company. The goal of this assessment is to analyze the strengths and weaknesses with the financial ratio analysis of the company along with conducting an internal factor evaluation matrix to view the status of the company in comparison with their top competitor, Royal Caribbean Cruises Ltd.

1.    What is the minimum number of passengers Health Cruises must sign up by November 20th to break even?  [show your calculations]

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 has to great awards under their belt. First cruise ship to have over one million passengers in one year and also carry five million passengers total. They currently carry over twenty cruise ships that they operate, and that number will continue to grow as long as they are

As the number of cruise ships continues to increase in the industry, domination by a few companies continues to rise. Carnival Corporation & plc is one of the largest cruise companies in the world has put orders for three new cruise ships to be built in China. This is in order to have cruise ships that are going to different routes at a time, hence serving a more diverse customer base (Vairo, Quagliati, Del Giudice, Barbucci, & Fabiano, 2017). The company has already almost exhausted the older generation of its customers. Carnival Corporation & plc has however found it hard to attract the younger generation.

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.

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.

Shore excursions also provide tours for customers at the ports that also produce a large amount of revenue. It is currently one of the fastest growing areas of tourism. Carnival Corp. has cruise ships located around the world, with very different target consumers as well. The more exotic the location, the higher the cost for the company, which results in a higher price for consumers. Higher end brands appeal to the wealthier consumer and provide them with a more luxurious experience.

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 final uncontrollable force affecting the cruise line industry is competition (Montalvo, 2007). This is probably the least influential force since 91% of the cruise line industry is made up of three companies-Carnival, Royal Caribbean, and Star. These three organizations are world-famous and have developed the cruise concept to the point that there is a cruise that will fit just about every person’s destination dream and budget reality.

Like it was yesterday I remember my first vacation on a cruise. My Dad and I went on a three- day long cruise to The Bahamas. I had never been on a cruise, so it was a new experience for me. We needed to be in Tampa for our departure, so we drove the two hours from Orlando, Florida to Fort Lauderdale, Florida. My Dad and I used this time to talk, make plans for the trip and think about our upcoming adventures on the cruise.

Carnival has a strong market expansion strategy for selling the mass-market cruise category and first-time cruisers. Furthermore, Carnival Cruise Lines are successful because they have a clear vision and a commitment to their brand essence,

puts a story on the screen and into life so that people can see it.

This report mainly analyzes and evaluates the targeting process of the travel agency industry, in particular the Cruise liner industry, by focusing on KKL Cruise Liners. KKL Cruise Liners is a travel agency providing packages to sail across oceans and seas to different destinations worldwide.