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Carnival Cruise Lines

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Carnival Cruise Lines
The company founded in 1970s is a market leader in the cruise vacationing category. It comes under Carnival Corporation which has a portfolio of 12 cruise lines and 75 ships. The operations are mainly in North America (where they sailed from 19 home-port cities).
The company has its headquarters in Miami and is perceived as “Fun Ships” by the customers. Carnival Corporation has a market share of 51.6 % (North American Cruise Capacity). Carnival Corporation is currently having the best year in its history. Carnival Cruise Lines currently has a fleet of 20 ships and would be adding the 21st ship to the fleet in the next year. They are the leaders in the low-price segment.
Cruise Industry Background

* Cruise vacationing was the fastest-growing category of the North American leisure-travel industry * Only 16% of the North Americans have ever cruised (huge potential) * 70 Brands serve the North American market since the 1960s but the Top 10 Brands control 95% of the Market share * North America accounts for 74% of cruise passenger capacity while Europe accounts for 23% * Cruise Lines targeting the North America market operates in four segments – contemporary (mass-market), premium, destination (speciality) and luxury. The luxury and destination segments accounts for only about 5% of the market
Case

The company is looking ahead to opportunities and challenges * There is a branding initiative designed to narrow the gap between Carnival’s on going quality improvement and consumer perception of the Carnival Cruise Experience * The company is also contemplating about the next generation of Carnival Cruise ships that would be needed to keep up with the demand for cruise vacationing * There is also the task of handling the friction in evolving cruise distribution channel (agents account for 85% of the total bookings). Direct marketing efforts by the company has rankled some travel agents * There is a huge task of best managing the customer relationship now and also into the future * There has been less emphasis on repeat business (growth has been fuelled by selling the mass-market cruise category and the first-timers) * Carnival has amassed a large past-cruiser database, but hasn’t done anything significant with it * The company has intended to continue the repositioning of the brand as more sophisticated, but still fun, vacation experience * Carnival’s management hasn’t been able to figure out the way to leverage the brand’s market leadership into an even stronger competitive position and higher margins * They are looking out for ways to attract even more loyal customers (on any cruise roughly only one-third have sailed with Carnival before)
The main question is how Carnival could leverage its substantial access to customer data to better understand, serve and profit from cruise guests?

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