...Forces Scale Comments Rivalry | High | 1 | Suppliers | Moderate | 2 | Buyers | Low | 3 | Entry & Exit Barriers | Low | 4 | Substitutes | High | 5 | 1. The cruise line industry is effectively an oligopoly market, where several major cruise liners make up more than 90% of the market shares. Carnival is constantly engaged in marketing and pricing battles with these competitors, making internal rivalry central to the industry. Additionally, cruise lines have historically been subject to heavy M&A activity, and Carnival sometimes competes to acquire even more share. The cruise line industry has relatively high competitor diversity and a moderate level of product differentiation. Carnival and Royal Caribbean are each more than 3x the size of the next largest competitor. Smaller cruise lines tend to specialize in options for a particular demographic or geographic region. Carnival Corporation’s multiple brands create a competitive rivalry within the company; however, each brand caters toward a slightly different demographic or specializes in a particular market or geographic region. One additional factor increasing internal rivalry in cruising is the industry’s high exit barriers. It is difficult for a cruise liner to sell their assets and exit the industry. This increases competition within the industry somewhat, as there is inflexibility in capacity adjustment, meaning that companies will undercut...
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...Strategic Plan Part II: SWOTT Analysis University of Phoenix Adventure Cruises is a small ship company that specializes in active and luxury adventures that are designed to provide unique experiences and bring you up close and personal with destinations. With two upscale yachts that hold 35 guests each, cruising with Adventure Cruises is a truly intimate experience. The experience is active and full of adventure, yet in relaxed luxury. Destinations include the Mediterranean, Northern Europe, Tahiti and South America. The small yachts will bring customers to some of the most desirable destinations around the world, including big cities and hidden gems. And internal and external SWOTT analysis will be conducted to determine the factors that have an impact on the success of the company. SWOTT is an acronym for strength, weakness, opportunities, threat, and critical threat. The analysis is used to evaluate and then improve a company’s current situation. Internal features are examined to see the different strengths and weaknesses, and opportunities and threats are examined to reveal external factors facing the business. Once the analysis is complete, it will help Adventure Cruises determine what they can do to stay competitive and successful in the industry. The SWOTT Analysis involves Adventure Cruises answering numerous questions regarding their strengths and weaknesses as well as any threats and trends of the company. There will be assessments of influences...
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...Annals of Tourism Research, Vol. 27, No. 2, pp. 345±370, 2000 Pergamon 5 2000 Elsevier Science Ltd. All rights reserved Printed in Great Britain 0160-7383/00/$20.00 PII: S0160-7383(99)00073-0 CARIBBEAN CRUISE TOURISM Globalization at Sea Robert E. Wood Rutgers University-Camden, USA Abstract: Caribbean cruise tourism provides a particularly illuminating vantage point for understanding the processes of globalization in the world today. After documenting the rapid expansion of this business, the paper explores three central manifestations of globalization at work in the Caribbean cruise industry: the restructuring of the industry in the face of global competition, capital mobility, and labor migration; new patterns of global ethnic recruitment and strati®cation, including their incorporation into the product marketed to tourists; and deterritorialization, cultural theming, and simulation. The paper asserts that this ``globalization at sea'' illustrates the contradictions, ambiguities, and unchartered course of contemporary globalization processes. Keywords: globalization, tourism, cruise industry, Caribbean, migration, ethnicity. 5 2000 Elsevier Science Ltd. All rights reserved. ReÂsumeÂ: Le tourisme de croisiÁere aux CaraÈõbes: la globalisation en mer. Le tourisme de croisiÁere aux CaraÈõbes fournit un point de vue particuliÁerement appropriÂe pour comprendre le processus de globalisation dans le monde d'aujourd'hui. AprÁes avoir passÂe en revue la rapide expansion de ce...
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...ROYAL CARIBBEAN CRUISES LTD. 2008 Annual Report ANCHORED IN EXCELLENCE We always provide service with a friendly greeting and a smile. * We anticipate the needs of our customers. * We make all effort to exceed our customers’ expectations. * We take ownership of any problem that is brought to our attention. * We engage in conduct that enhances our corporate reputation and employee morale. * We are committed to act in the highest ethical manner and respect the rights and dignity of others. * We are loyal to the Royal Caribbean Cruises Ltd. family of companies, and strive for continuous improvement in everything we do. * B efore 4 97 $175 98 $331 99 $384 00 $445 01 $254 02 $351 03 $281 04 $475 05 $663 06 $634 07 $603 08 $574 97 $2,019 98 $2,455 99 $3,261 00 $3,616 01 $3,757 02 $4,035 03 $4,263 04 $4,805 05 $5,554 06 $6,092 07 $6,757 08 $6,803 95 $149 94 $137 93 $107 92 $ 61 91 $ 90 $ 52 89 $ 42 88 $ 14 96 $151 SH AREHO L DERS ’ EQ UI TY ($ millions) 96 $1,085 95 $ 965 94 $ 846 93 $ 733 92 $ 464 91 $ 404 90 $ 400 89 $ 348 88 $ 295 c umulative effec t of a c hange in ac c o u n t in g p r in c ip le 08 $6,533 07 $6,149 06 $5,230 05 $4,903 04 $4,555 03 $3,784 (dollars in thousands, except per share data) 02 $3,434 Total Revenues Operating Income Net Income Earnings Per Share (diluted) Shareholders’ Equity 01 $3,145 ...
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...Introduction 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 operating internationally. Global Forces There are many forces that can affect a business. These forces can be economic, social, political, or cultural. Either way, these forces affect an industry’s opportunities, choices, perspectives and even social image. In the cruise industry, there are two major factors that contribute to its growth; the change in the competitive environment and the demand for travel. The competitive advantage of cruise lines are brought by the arrival of ocean “airline” services and the increase of flexible incomes the cruise line industry has to offer. The demand for travel also contributes to the growth of the cruise line industry. Today, people are more willing to travel farther and stay longer. Cruise lines responded to fast...
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...Sciortino Deepa Sethi Executive Summary Carnival Corporation is the leading cruise line company in the international cruising industry, with 11 major cruise line brands and is clearly a winning company. It controls almost 50% of the cruise line market and is a broad line provider. The company does not face any considerable challenges within its industry and has adequately responded to all threats. Although 2008 was a challenging year due to the economic crisis, Carnival posted net income for 2008 of $2.3 billion (15.9% of sales). Carnival’s strategy is to be a broad line provider with a wide scope on a large scale. Carnival maintains this strategy by focusing on cost leadership in the contemporary and bargain lines, and then differentiating in the premium and luxury lines of their product mix. Industry & Competition The cruise line industry is a moderately attractive, 3-star industry that is characterized by top incumbents capturing a majority of the economic value in the industry, high fixed costs, cost savings achieved from economies of scale, and a high degree of rivalry between the top two industry incumbents. The cruise line industry has reached the growth stage after the inflection point. It is predicted that the growth stage will be longer in the cruise line industry due to frequent product upgrades and niche enhancements that forestall movement into maturity. The cruise industry has developed into a duopoly. While Carnival has 47% of the market,...
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...PRE-, POST-, AND OFFSHIP CRUISE EXPERIENCE OBJECTIVES: At the end of this chapter, the students will be able to explain and understand: Categorize the various types of precruise and postcruise options Describe how shore excursions enhance a cruise Categories of port experience Pre-cruise Intermediary port stops Post-cruise Pre-cruise Packages PRECRUISE PACKAGE- package that includes lodging at the cruise departure port before the cruise Air /sea package- a package that includes airfare, the airport to dock transfer and lodging. Obtain either from cruise line itself or can be arranged independently What are the advantages—both to the client and the agent—of purchasing a pre- or post cruise package through the cruise line? One phone call or computer transaction can set up the whole package. Some or all transfers may be included in the purchase price. Less commission Cruise line personnel are ready to help if a problem occurs. Air and lodging rates may be lower. Advantages of booking with the non-cruise suppliers The selection of airlines and flights may be better. Airfares may be lower EXPENSES COVERED BY TRAVEL INSURANCE Trip cancellation, delay or interruption Lost or stolen luggage Medical expenses for accident or sickness incurred onboard or overseas (including emergency transfer from the ship) PASSENGER OPTIONS WHEN THE SHIP MAKES INTERMEDIARY PORT STOPS They may purchase a shore excursion through the cruise line. They may buy a tour or...
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...Environments and Operations, Fifteenth Edition Carnival Cruise Lines: Exploiting a Sea of Global Opportunity. Summary: The case has given us the definition of Cruise, as well as the history of Cruise. Nowadays, there are 2 biggest companies: Carnival and Royal Caribbean nominated the Cruise Industry with total of 72% of the market. By far, Carnival is the bigger than Royal Caribbean. Furthermore, the case goes deeper about the company – Carnival; for example; history, business background and business potential of Carnival. Carnival has done very well In International Water. Company has flags of convenience of about 30 different countries. Legally, Carnival is a Panamanian company, even though it’s listed on the New York Stock Exchange, has operating headquarters in Miami and London, and caters mainly to passengers who set sail from the United States. Moreover, the case also explains how Carnival became so successful: First, ship shopping, Carnival has a huge system in global and is also received a huge advantage of low tax. Secondly, where to find Able- Bodled Seamen, crew members of Carnival hail from 100 countries but mostly they are Filipinos because of fluent English and cheap labor. Thirdly, Casinos and other Amenities, that is because cruises operate outside the jurisdiction of any national authority, they’re not subject to any national laws restricting gambling. In addition, the most activity of shopping in cruise ship is selling arts. However, Carnival has also met some...
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...Communications 101 Manny Diaz Cruise Vacation or a Resort Vacation? Some people argue by asking the question, which is a better vacation? Is it a cruise vacation or an all- inclusive resort vacation? There are a lot of things that play a part in which is a better vacation; anything from food, activities, age of people to the price. My wife and I have taken both of these vacations in the past 12 months and will try to share our likes and dislikes. Some of the highlights are the same. They both have lots and lots of food. They both are full of fun with plenty to do and if you get bored, I would consider the experience your own fault. Our first cruise experience came with the opportunity to spend it with six other friends back in May of 2008. Carnival was the one we choose because people refer to it as a party boat (Cruise mates). If a person is looking for more of a party atmosphere, go with carnival. That is what we did and the reviews were correct. For a younger crowd; go in the spring or fall and for fewer days because kids are in school. Our first resort was nine days in Jamaica at an all inclusive Sandals Resort. The time was March 20th 2009 which was our honey moon. What makes Sandals the best place to spend your vacation, there is eight other locations over the island. People stayed at the less expensive location and played at all the rest which is included in the price. While everything is included in the price for the cruise; the drinks were extra. They offered...
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...Overview: Cunard line, Ltd. Was a wholly owned subsidiary of Trafalgar house, a large London-based conglomerate. It had been in the cruise and steamship business since its founding in 1840. It was a widely considered to be the last of the great steamship lines, and ad successfully adapted to the contemporary marketplace. Prior to the advent of jet travel, the firm had been an important worldwide provider of travel services, particularly between Europe and North America. The growth of convenient airplane service on international routes had changed the basic character of its business. Cunard now was in the “luxury vacation business. Customers were treated to a wide variety of activities, and entertainment and sumptuous food while they were at sea. The appeal to the user was to experience luxury and fun while cruising amount interesting vacation-oriented ports. Cunard offered cruising on seven ships. Five of them were in the luxury (5 star) category, and two were in the premium (4 star) category. Each had its own distinctive image and positioning: The first of the cruise ships was considered to be the finest in the world it was called the QE 2. It offered ultra- luxury accommodations and exquisite service. In addition to traveling between New York and Europe it was used in the Caribbean and made one round the world trip each year. The QE 2 had a capacity of 1,850 passengers. The Ultra Deluxe was the Sagafjord and Vista fjord were five start cruisers. They ported primarily out...
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...A vacation is a wonderful way for us to have a break from every day stresses and schedule conflicts. A luxury cruise can offer all these things and much more. Personally experiencing what a luxury cruise has to offer, I can guarantee a cost worthy, indulgent and memorable experience. The most enjoyable vacation I’ve experienced was a luxury cruise .Over the span of 4 days I was able to travel from Miami, Fl all the way to Conzumel , Mexico. Having experienced such a wonderful vacation in a short four day cruise, I would like to propose a long, luxurious, and romantic fourteen night cruise for our family of two. This ultimate dream vacation would take us from the Gulf of Mexico, to the Bahamas and everywhere in between. This dream vacation is well worth the price. Having your hotel, restaurant, entertainment, and transportation all in one place makes for a very relaxation experience. Whereas other vacation hot spots may have you running around and wasting your vacation time. The cost of the fair pays for all the gourmet food you will be having and allows twenty four hour room service. Taking a luxury cruise, allows for a very indulgent vacation. You can indulge in food, sightseeing, entertainment or spa treatments all on board the cruise ship. When reaching destinations, every port has something fun and exciting to do! For example, when I was in Mexico on my cruise, I took a taxi to an all-inclusive resort and had lunch, snorkeling in perfect crystal clear water, followed by...
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...Tel: +603-2145 9880 (Ticketing) Tel: +603-2148 7880 (Agency Sales) Fax: +603-2148 7454 Email: sales@edenvacation.com Email: corporateenquiry@edenvacation.cm Complain Email: complain@edenvacation.com Suggestion Email: suggestion@edenvacation.com Table of Content Introduction to Star Cruise……………………………………………………………………….……3 SuperStar Libra…………………………………………………………………………….........3 Additional Information………………………………………………………….……….9 Introduction to Costa Cruise……………………………………………………………….…….....10 Costa Victoria…………………………………………………………………………………..10 Additional Information………………………………………………………………...18 Cruise Packing……………………………………………………………………………………..….19 Nautical Terms…………………………………………………………………..…………………….21 Conclusion……………………………………………………………..………………………………23 References…………………………………………………..…………………………………………24 Appendix…………………………………………………………….…………………………………25 Introduction to Star Cruise SuperStar Libra SuperStar Libra brings a world-class exclusive floating resort on the high seas that offers an impressive array of facilities, entertainment, recreational activities and services coupled with warm Asian hospitality, which have become the hallmarks of Star Cruises. Ship fact Gross Tonnage | :...
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...Memorandum To: Vice President (Instructor) From: Operations SBU Team A Date: Sunday, March 30th, 2014 Subject: Company Strategic Goals and a Project Portfolio Management Process EXECUTIVE SUMMARY: The 2014 Cruise Industry report indicates that the cruise line industry will continue its global presences and with the economy in an ongoing recovery mode, the Oasis Cruise Line & Travel Company is anticipating a positive year of growth and expansion. Our organization, Oasis Cruise Line & Travel Company is fortunate enough to have a viable Strategic Business Unit (SBU) team that can analyze and develop our company’s organizational strategy aimed at generating future business and/or revenue. Our SBU Operations team supports the company’s key business objectives in the Project Portfolio Evaluation and Selection process by conducting the following: * Clarifying the various projects and missions of the company * Defining the best business approach for each project * Surveying the landscape and the environment for future growth and development * An internal and external appraisal of the projects * Setting the corporate objectives with each project * Assisting in the formulation of the corporate strategy * Finally, monitoring the project strategy for corporate success In order for our company to stay competitive and be successful we must embrace the PPM business practices that can generate more value with our project selection to make better, more...
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...segmentation and positioning approaches of the cruise line industry. The paper focuses on the four different types of cruises and their characteristics and the positioning approaches cruise lines use to attract their customers. Marketing Segmentation Market segmentation is the process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment (Dowling, 2006). In pursuing a market segmentation strategy, brands most focus its efforts on a discrete group of consumers to the exclusion of other groups (Elliot, 2007). The cruise industry is segmented into four types of cruises based on certain characteristics that define the on-board lifestyle and the overall vacation experience. The first two types of cruise line classifications are the first-class cruise lines (also known as the mass market lines), and the premium cruise lines. These lines are resort-style vacations offering a board base of services, destinations and amenities that are affordable to most travelers (Hernandez, 2012). The first-class lines focus on the client’s lifestyle rather than using the price or the client’s age. Examples of first-class and premium cruise lines are Royal Caribbean and Princess Cruises. General Characteristics of the First Class Cruise Lines * Large ships * Passenger capacity 2000-3500...
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...CARNIVAL CRUISE LINES Questions on Strategy 1. What strategy has Carnival adopted in the past to build the cruise line into the dominant player in the industry? Was this a wise approach? Carnival cruise lines was the dominant player in the cruise industry over the last 30 years because of a strong and highly visible brand, a tight control over costs and a clear vision about the industry. Carnival’s corporate strategy was to see them as a vacation business, not a cruise business putting them in direct competition with other vacation companies. The strategy was to convert land vacationers to cruisers. The company saw the huge untapped potential that the North American vacation market offered; only 16% of the country ever cruised. This was a very successful strategy. Carnival’s success and profitability grew, increasing their percentage of market share in the industry each and every year. Carnival managed costs much more aggressively than its competitors. They scrutinized capital purchases and whether there was true value with the asset. Competitors were paying 25-30% to buy a ship per bed more than Carnival. The parent company utilized economies of scale in purchasing. When 9-11 hit, Carnival cruise lines was in position to capitalize on new market segments, operate in new ports (Galveston, TX) and become the new low cost leader. Many of the smaller cruise lines were forced into bankruptcy. This strategy has proven very successful for Carnival. They...
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