The Cruise Industry

A. Pause Strategy (CI#1, 2, 3): Carnival Corp has been known for health and safety records, a key component in consumer decision-making in the cruise industry. In order to begin improvements, a pause strategy needs to be utilized to allow the company to take a step back from aggressive growth and focus more towards consumer necessities. Many complaints stem from issues like sanitization of rooms, quality of food, and ship malfunctions. Keying in on ship maintenance, restoration, and efficiency will significantly decrease the chance of malfunctions. While implementing more stringent and attentive guidelines towards guest amenities and conditions of food storage/quality to help increase consumer appeal.

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).

* Travel agencies: Travel agencies have strong relationships with the cruise industry as they book around two thirds of their cruise. Although this percentage is declining due to the growth of consumer knowledge and technology the percentage of cruisers using travel agents is relatively strong. (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

The Carnival Cruise Lines, Inc., was founded by Ted Arison in 1972. (Corporate Information) Ted ran the company until 1990 when he handed over the business to his son, Micky Arison. Micky became the CEO, and then became the Chairman. Carnival is the largest and most popular cruise line in the world, carrying more passengers than any other cruise ship. The Carnival Corporation mission statement is; “Our mission is to take the world on vacation and deliver exceptional experiences through many of the world's best-known cruise brands that cater to a variety of different geographic regions and lifestyles, all at an outstanding value unrivaled on land or at sea.” (Carnival Corporation History)

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

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.

The cruise-line industry has changed drastically over the past several years. What was once thought of as a luxury to most people, is now affordable and convenient. The industry now focuses on targeting the working middle class, as well as the upper class. One cruise-line in particular, Carnival, has mastered the informal cruise for the mass market. Carnival offers numerous cruises that are inexpensive and exciting. Nevertheless, Carnival operates internationally with shipyards and ports all over the world. Being an international business, Carnival is affected by many global forces, both controllable and uncontrollable. In order to maintain the corporation’s success, Carnival must be aware of all global forces while

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.”

The global cruise industry continues to be the fastest growing travel sector in the world with strong consumer attention and substantial cruise line investment in a diversity of mind-blowing ships that travel to the most exotic locations in the world and offer exceptional vacation experiences.

The luxury and destinations segments are similar in that both of them target the upper class or those with healthy disposable incomes including retirees that are at a stage in their lifecycle allowing them to take longer, exclusive cruises often. People on these cruises demand the finest quality in all respects. A formal atmosphere with refined white glove service, along with personalized service accounts for value and satisfaction. Psychologically, these users are above all and deserve the best of the best. Therefore, their lifestyles allow them to be regular and heavy users of cruise vacations. Based on their preference, it can be assumed that these segments are hard core or split loyal to the brands they choose because their attitudes are very enthusiastic towards the type of experience they expect and may be hostile towards anything less. The type of ship is small for both segments, representing the small percentage of the market occupied. Therefore, little priority should be placed on targeting these segments. Users that decide to buy this cruise package will be for the sole psychographic reason of social status to

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