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)
Top strengths that Carnival Corporation & plc has to their advantage would be their strong brand and major control of the market share. Containing a strong brand portfolio with a total of 10 well-known brands operating about 102 ships. Such brands include Carnival Cruise Lines, Holland America Line, Princess Cruises and Seabourn in North America; AIDA Cruises, Costa Cruises, Cunard, Ibero Cruises, P&O Cruises (Australia) and P&O Cruises (UK) under the Europe, Austrailia & Asia segments. Along with Holland America Princess Alaska Tour and the Canadian Yukon (Olarte, 2017). The company is also the largest cruise company in the world in terms of cruise passengers with a market share of about 47% followed by Royal Caribbean Cruises Ltd with a market share of 23% (Cederholm, 2015).
Answer: Carnival should place a high priority on marketing. They can include more varied activities that should be marketed towards different lifestyles. This will attract more people who would not have considered a cruise in the past. They can offer many promotions that lower the cost of their cruise. The company can also offer a large selection of cruise options, with ports located in many countries around the world. (Source: http://www.echeat.com/essay.php?t=31046).
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
* Low price sensitivity: As cruising may be categorized as a luxurious leisure-activity, its target market on average have high annual income of $82,000 - $97,000 with the average age of a cruiser being in their late forty’s. Therefore, they are not as sensitive to pricing, as the price of a cruise vacation is relatively low to the average income of the target market.
One of the tours they offer is to the Caribbean, providing stays in the most exclusive and luxurious hotels and resorts in the Caribbean. The holiday is tailor-made. It offers the opportunity to glimpse the flavour and colour of local life.
Trends have shifted in the cruising industry towards the 45-60 year old age group. As this age group grows in population, Carnival can take advantage of the economies of scale and offer them the best prices.
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,
Apart from the 4 factors ship type, DWT, ship age and gears, there are a couple of other factors which affect the ship price. They are
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 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
With a variety of activities from rock climbing, pools, and casinos, Carnival trips have activities for everyone. Additionally, Carnival recognized the shift in cruise demographics from the start. In the 1970s, cruisers were generally older, however, there was a growing trend of young singles and young families taking cruises. Carnival developed cruises from the start with these new customers in mind.
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.
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.
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,