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Royal Carribean

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Submitted By ghostlykhaos
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Royal Caribbean Case This main focus of this case study is an analysis on the current situation (data from around 2Q of 2010). The case compares Royal Caribbean to its main competitor, Carnival, through the entirety of the study. The most discussed issue in the case is of Royal Caribbean and its situation relative to the world economy as its recovering from one of the worst recessions since the great depression. From where the timeline of the case begins (2Q of 2010) it had made a large recovery in profit and had cut costs as well. However, even despite the forecasts predicting a further increase in profit, Royal Caribbean along with the cruise line industry is still in a delicate position. The case constantly brings up the point that cruises are solely a purchase based off of discretionary income. In times of economic struggle, discretionary items like cruises are left out of the budget. Another issue that the case brought up with every factor discussed is Royal Caribbean being 2nd place in the world for market share, bested by Carnival Cruise Lines. The case goes back and forth debating whether or not its position within the market share is a good thing. While they by far are in 2nd place, Royal Caribbean has a special niche in the market being the luxury cruise liner with the newer and nicer ships. Overall, the largest theme in this case study is the uncertainty of the cruise industry with the unpredictable economy that may or may not be recovering.
Strategic & Financial Objectives
The first and most important financial objective Royal Caribbean should set is to completely rethink the travel agent component. RC needs to implement an online system that is easy to use and understand, with an IT support for baby boomers that aren’t technology friendly. Outsourcing a call center and paying some web designers is a fixed cost that will cut costs and remove

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