1. After running two different regression models using passenger cruise days and number of passengers to predict which variable better estimates total cost, the data (including a slightly higher adjusted r squared) suggests the number of passenger cruise days acts as a better predictor of total costs. The number of passenger cruise days is more economically plausible because it is more logical to allocate the costs based on the number of passenger cruise days rather than the number of passengers. More specifically, number of passengers does not fully explain the amount of total costs because of the varying duration of trips. For example, consider an instance where Carnival accommodates one thousand passengers on a four-day cruise and one thousand passengers on a seven-day cruise. Theoretically total costs would be the same when using number of passengers to explain total costs because each cruise accommodates the same number of passengers. On the other hand, when one considers the length of a cruise, total costs should be higher for longer cruises. Per the example above, a seven-day cruise will have higher costs than a four-day cruise because of the additional resources needed to accommodate passengers for a longer period of time. 2. In order to determine whether two independent variables better explain cost than a single regression (See #1), the group ran a two separate multiple regression. The first multiple regression was run with the number of passenger cruise days
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The criteria I have chosen for choosing a weekend cruise to The Bahamas suggest that I should depart from Miami following the weekend starting Friday December 5 to Sunday December 9, in a cruise ship capable of accommodating a minimum of 1500 passenger with a max of 2000 passengers. The cruise ship shouldn’t be older than 10 years if never renovated. If renovated it should be 5 years from the date renovation was finished. The entire cruise for two should not exceed $600. My recommendation for the weekend cruise to The Bahamas is option 3 or ship 3. According to the criteria I assign for this cruise, ship 1 (The Bahamas Paradise) is the more indicating to travel on. Apparently fits the criteria with the exception of the
The intent of this analysis is to compare and contrast the cost structures for rail, motor carriers and air modes of transportation. Implicit in this analysis is the rapid adoption of intermodal transportation which is often optimized to specific logistics and supply chain objectives (Jennings, Holcomb, 1996).
While we are performing our analysis on different aspects of the company, we look at the three main types of cost. When we remain devoted to improving our costs, and the faults related, we show our same devotion to our consumers. This is portrayed by the quality of products we put on the shelves. Prevention costs, appraisal costs and Failure costs are areas
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 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.
Over the years the cruise industry has seen remarkable growths across the country. Several different ports have seen an increase in ships, which increases the amount of passengers have grown. When ships, and passengers increase it can only benefit the cruise industry in a whole. Means more profits, jobs, and the economy will thrive.
In the case study did not take other costs into considerations such as running costs of trucks and vehicles, it only provides the annual allocated costs (depreciation costs), however, the more events that the client service, this will end up having higher running costs of the trucks and vehicles such as parking, petrol, diesel, etc.
Leisure travelers overall will be made better off by the new fare structure. These travelers have more flexibility and can take advantage of the advance purchase discounts and Saturday-night stay discounts. An exception to this is leisure travelers who had found “loop holes” in the old fare system by using “creative ticketing” and waiting for deep discounts. These leisure travelers may pay higher rates because the deep discounts will no longer be offered.
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.
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.”