Oasis of the Seas

* Psychographic - JS provides two variations of cabin classes (Star Class and Economy) to meet the different needs and wants of consumers. The strategies of JS have attracted a market that have a simple need to reach their destination at the cheapest rates.

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.

* Distinctiveness of cruise experience: Cruising is perceived as a more expensive vacation alternative compared to land-based trips, however there is a strong belief among consumers that cruising offers high value for the price consumers pay. Cruising is looked at a full package by offering bundles of travel packages including airfare, dining, itineraries, resort stay, and multiple other amenities. Therefore, a cruise offers a distinctive type of experience that most consumers would choose over various other traveling substitutes. (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

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

Cruise lines have been classified into three separate entities, luxury, premium, and contemporary. The three classification allow for choices on what kind of

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.

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.

A few international differences affect the operations of cruise lines. Differences include political/legal, geographic, economic, or sociocultural. Since cruise lines are an international business, they are affected by these differences. Many cruise lines choose to flag their vessels in countries that have “lower taxes and less stringent employment practices required by the laws of those countries” (The Cruise). However, some governments may choose to subsidize the ship industry in order to secure contracts for their domestic firms. Many ships are built in order to be appealing to the eye, but with cruise ships going to so many different places, they have to be designed not only to accommodate the economic reality of the mass market, but also the cultural preferences of the clientele.

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.

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.”

This report will identify the cruise marketing strategies of Carnival Cruise Lines and Thomson TUI in the UK. The report will be comparing each company to the other and how well each company is performing throughout the years gone by. Assessment of their positioning and pricing policies also will be acknowledged. It will also review the effectiveness of their promotion and advertisement campaigns.

Despite Cabo San Viejo’s (CSV) start in the late 1970s as a “fat farm,” catering primarily to women, the resort is now operating in a more niche and exclusive market, providing for guests who are largely affluent with high expectations for the service. In terms of pure demographics, the business welcomes 3,500 new guests each year. Between new and repeat customers, 70% to 80% are female. In the high seasons of winter, spring and fall, the average household income (AHI) exceeds $150,000 for 82% of guests; in the summer an AHI greater than $150,000 applies to 59% of guests. Most customers live in California and the West coast region and are in their 40s or 50s. It is interesting and should be pointed out that between 1992 and 2004, CSV’s average customer age has increased by 10 years of age, from 47 to 57. Behaviorally, up to 70% of new guests became aware of CSV via word of mouth, while 30% visited as a result of travel agent referrals. The most common reasons for patronizing CSV (regardless of frequency) are rest, a healthy vacation option, fitness vacation option and spa activities and offerings. The average guest takes 3 to 4 vacations per year and first time guests returned to the resort within six years at a rate of 32% and 62% of initial return visitors returned again within 6 years. The two most common reasons for customers returning are health benefits (35%) and a great overall vacation (30%). CSV

The cruise industry has definitely evolved over the years to meet the changing demands and expectations of its passengers. The most important changes in the industry over the years are the introduction of shore excursions, new cruise routes and changes in the ships themselves. The first cruise ships offered few to no excursions while all the modern cruise lines offer over 100 excursions per cruise. These excursions can include participating in an actual boat race in Philipsburg, climbing waterfalls in Ocho Rios and scuba diving which is always very popular among passengers. They are designed to give the passengers a new and thrilling experience that they cannot attain at home. In the old days, the only cruise routes available were transatlantic and small European routes. The transatlantic route became unpopular in the 1960’s as air travel shortened travelling time from less than 20 hours by air versus four days by cruise. However, with the launch of newer,