Carnival Cruises
Carnival Cruises
Question 1
Global forces
development of transocean air service : pros and cons
took business passengers from liners
competitive change: advent of jet travel 60’s
growing mass market for budget minded international travellers
immune of economic recessions: during that, people just took shorter cruises, with nearby embarkation ports
– all inclusive prices / day vs travels to big cities bargain
Question 2
Cruise line industry: part of the larger global tourist industry= 10% of global spending
New target : economic middle class in addition to the rich = groups with income but not a rich customer segment
Shipping lines “getting there is half the fun”
Conversion more shipboard space to low priced accommodations
Retired the giant luxury liners
Globalization : the shipping company can be registered as a national legal entity (ex: Liberian/Mongolian), and it can take advantage of the lower taxes and less stringent rules on its employment practices that those countries offer
No income taxes, but port fees wherever the ship docks
This has come about because there are more women in the workplace, which gives households more disposable income.
Question 2 Carnival
Cruises to every continent
Fun ship concept = transformation of liners’ travel
Opportunity : liners retired buy used ships at cheap price
– growing affluence = more people can afford vacation
fun ship concept : take group tours and visit theme parks+las vegas
operates in different areas of the world : diversification and product differentiation
different targets / segments
entire cruise line is international
nationality of the companies
“flags of convenience” : 30 countries offer shipping companies
panamian company, whereas it’s listed on the NYstock exchange, headquarters in mimai, and American passengers principally
no income taxes (nor panamian, nor US)
international cruises = records of bed days = high revenues long travels
additional revenues with shore excursions
benefit on governements’ subsidies on shipbuilding
international agreements : seamen can virtually enter any port in the world companies can hire the best staff for the cheapest price : costs decrease
+ access to skilled international staff
cruising for the masses
ship-resorts : restaurants, theme dinners, games, spas, activities, casinos, international products
since cruises occur outside the confines of any country: cruise lines avoid national laws restricting gambling
Operations all over the world whole world is a source of customers and suppliers
Ships mobile possibility to move capital assets where they can best serve the needs
Tokk advantage of terrorists’ threats : ex: 9/11 : fear of flying
Growing income in many countries (china, India for ex.) new customers
People already aware of the attraction/benefits of cruises = easy target no need to make huge advertising campaigns to make people aware people just have to be convinced of the enjoyment procured by cruises
Carnival is using its assets effectively
To consistently exceed guests expectations