Health Cruises Case
Read the Health Cruises Case and submit answers to the following questions.
1. What is the minimum number of passengers Health Cruises must sign up by November 20th to break even? [show your calculations]
Considering that an average ticket price is $1500 and the cost per passenger is $200, each sold ticket generates $1,300 of the positive cash flow. Since $295,000 of the initial capital had been spent by November 14th, the following minimum number of passengers must sign up in order for Health Cruises to break even provided no more money is invested:
Minimum passengers to break even = $295,000 / $1,300 = 227.
2. Should Health Cruises go ahead with the cruise since 200 people have signed up by
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Health Cruises, Inc.
Health Cruises, Inc. packages cruises to Caribbean islands such as Martinique and the Bahamas. Like conventional cruises, the packages are designed to be fun. But the cruise is structured to help participants become healthier by breaking old habits, such as smoking and overeating. The Miami-based firm was conceived by Susan Isom, 30, a self-styled innovator and entrepreneur. Prior to this venture, she had spent several years in North Carolina promoting a behavior-modification clinic.
Isom determined that many people were very concerned about developing good health habits, yet they seemed unable to break away from their old habits because of the pressures of day-to-day living. She reasoned that they might have a chance for much greater success in a pleasant and socially supportive environment, where good health habits were fostered. Accordingly, she established Health Cruises, Inc., hired 10 consulting psychologists and health specialists to develop a program, and chartered a ship. DeForrest Young, a Miami management consultant, became the chairperson of Health Cruises. Seven of Isom’s business associates contributed an initial capital outlay totaling more than $250,000. Of this amount, $65,000 went for the initial advertising budget, $10,000 for other administrative expenses, and $220,000 for the ship rental and crew.
Mary Porter, an overweight Denver schoolteacher, has signed up to sail on a
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.
Genesys Health System used health navigators, who supported and educated patients with adopting healthy lifestyles. They were able to dramatically improve the health behaviors of at-risk patients. McCarthy & Klein (2010, p. 2) reported patients experienced a 53% increase in physical activity (among those who were previously inactive), a 17% smoking cessession rate, and a 80 to 90% increase in disease self-management by formerly unengaged diabetic patients. Ultimately, Genesys Health experienced a 50% reduction in hospital admissions and emergency department visits (McCarthy & Klein, 2010, p. 2).
Studies postulate that over 40% of American nationals from minority groups live in poor inner city suburbs. The aspect leads to a high dependency rate among elderly individuals from the minority groups. The case study reveals that the 86 year-old Native Asian is dependent on his daughter who is a single mother. The patient further postulates bruises and injuries that reveal a possible incidence of physical abuse. Evaluation of the patient’s medical history and lifestyle also shows a decline in weight and health due to poor nutrition. Based on the patient’s history, he lacks an adequate support system to help him to cope with the adverse effects of old age such as poor mobility (Gibbs & Chapman-Novakofski, 2012). A critical analysis of the phenomenon is essential towards enhancing individuals’ knowledge on how to cope with patients who are experiencing physical abuse.
Summary SITUATION ANALYSIS As one of the leaders in the marketplace, and the nation’s third largest non-profit, secular health care system, North Shore-LIJ Health System is efficient in taking care of it’s employees. The overwhelming success of the 2010, “It’s About Choices Campaign,” leaves the North ShoreLIJ Health System with the an approval rating that exceeds all expectations. The organization will continue to pay on average 87% of the cost for employee benefits in 2011, however the health-care plans will differ from previous years. In an effort to increase the overall lifestyle and wellness of North Shore-LIJ employees, the
Administrators at a university will charge students $158 to attend a seminar. It costs $2160 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $50 per student for the administrators to provide the course materials. How many students would have to register for the seminar for the university to break even? Note: please report the result as a whole number, omitting the decimal point.
Carnival Corporation & plc. is a global company with over 100,000 employees that serve 5 million passengers a year. At the end of 2014 Carnival Corporation & plc. income earnings were $15,884,000 dollars. Tickets sales at $11,889,000 dollars. After paying salaries and other fees Carnival Corporation & plc. income came to $459,000 which is low considering that in 2012 and 2013 income was over $1,070,000 dollars for each year after deducting costs. (Financial Information) The total sales come for the different age demographics, so approximately 50 percent of the predictions for cruise come from the 25-39 age group followed by the 40-59 age group at about 39 percent and the 60 plus age group at 11 percent. (Cruise Demographics)
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.
What’s so awesome about booking a cruise with Royal Caribbean? Every family could use a vacation every now and then, a break from the real world, a break from society and their invalid judgments. Fun, excitement, and everlasting pleasant memories is what we think of when my family and I talk about our vacation on the Caribbean islands. Our vacation started in Seattle, Washington, where we boarded our flight to Miami, Florida, where we were soon to embark the Royal Caribbean Oasis of the Seas. Once we were aboard the ship, we were given cards that opened our room and that we could use to purchase food and souvenirs, then we were directed to our cabin. Ours was cabin number 154 and was a cabin on the 11th floor. Our room also had a balcony, and
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.
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.
The fixed cost of VG is about $150 million. The cost for the trip is expected about $100 thousand to $130 thousand per person, so the contribution is from $100 thousand to $70 thousand per traveler. The break-even points of VG are expected to fluctuate from 1500 to 2143. This means that in terms of conservative analysis, VG can get profits only after 2143 customers enjoy the suborbital trip. While the optimistic way showed that the necessary amount of customers is only 1500.
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
At the end of the 1960’s, Wilhelmsen and Stephan came up with the profitable idea that the wealthy residents of Florida will consider paying top dollar amounts to cruise to the Caribbean Islands as a great alternative for a week or weekend getaway. After proposing this idea to Norwegian entrepreneurs, Royal Caribbean Cruise lines, was born.
Carnival Cruise Lines is the largest cruise company in North America and carries more than 60,000 passengers a week. The Carnival experience is the standard against what past cruisers judge their later cruise experiences. Carnival has captured the "fun" psychographic and has a strong reputation for an enjoyable, relaxed cruise. Furthermore, Carnival has a strong market expansion strategy for selling the mass-market cruise category and first-time cruisers. They have a clear vision and knowledge about the industry and a commitment to their brand essence, which is fun. Also, as an extension to their branding of the "fun" ships they are the low-price leaders. Because of their strong brand image they are able to achieve double-digit growth in
In 1822, the very first cruise line, known as the Peninsular & Oriental Steam Navigation Company, was founded by Brodie McGhie Willcox and Arthur Anderson, both experienced in the shipping industry. Its first ship was the 206 ton paddle steamer called the William Fawcett, which was first deployed in 1835 from London to Spain and Portugal. More recently, in the 1960’s and early 1970’s, three of the world’s largest cruise lines were established. The first one, Norwegian Cruise Line, was introduced when airline travel was becoming increasingly popular. The cruise industry declined significantly from this competition. The second cruise line, Royal Caribbean International, was also experiencing the same challenges as