(Ibid; paraphrased) on a more positive note, according to one report: "Cruise ships have become one of the many options for corporate meeting planners when faced with a decision regarding a destination for meetings and incentives (employee rewards). In the past five years, all major cruise lines have unveiled mega cruise ships to attract a piece of the more than $20 billion corporate meeting and incentives market (uia, 2001; as cited by Phillips, 2005).
II. PORTER'S FIVE FORCE ANALYSIS SUMMARY
To summarize the competitive rivalry in the industry is fierce although the threat of new entrants is highly improbable due to concentration in the industry. The industry as stated by the Abacus system report will need to concentrate on luring female travelers and retirees into booking their cruise lines. Younger travelers will be targeted with budget cruise offers. Fuel costs, passport requirements, and environmental concerns, terrorists concerns, and natural disasters have…...
mlaBibliography
Which Way is the Travel Industry Headed? (2005) eMarketer. 14 Nov 2005 Online available at http://www.4hoteliers.com/4hots_fshw.php?mwi=1023 .
Robertson, Graeme (2006) Cruise Ship Tourism Industry Lighthouse Foundation for the Seas and Oceans. Online available at http://www.lighthouse-foundation.org/index.php?id=112&L=1
New Breed of Travelers (2006) Abacus International 25 Feb 2006 Online available at http://www.4hoteliers.com/4hots_fshw.php?mwi=1184 .
The World Cruise Shipping Industry to 2020 (2005) Bharat Book Bureau Online available at http://www.bharatbook.com/bookdetail.asp?bookid=7265&publisher=.
S.-based headquarters, marketing and tour operations (Billion, 2006);
Purchase of goods and services necessary for cruise operations, including food and beverages, fuel, hotel supplies and equipment, navigation and communication equipment, etc. (Billion, 2006).;
Payments for port services at U.S. homeports and ports-of-call; and Maintenance and repair of cruise ships at U.S. shipyards and capital expenditures for port terminals, office facilities and other capital equipment (Billion, 2006). "
The cruise industry economics benefits the U.S. In all 50 states including money spent by cruise line vendors and businesses that are responsible for supplying the goods for the cruises (Billion, 2006).
Political elements are also something that have an impact on cruise lines and their business and revenue.
In the recent light of terrorism fears, cruise lines have had to regroup and assure their potential and returning customers that every precaution for safety is being taken.
Each of the cruise lines mentioned here have placed information blurbs on…...
mlaReferences
Cruise Industry Contributed $32.4 Billion to U.S. Economy in 2005.
PR Newswire; 8/31/2006
Martinez, Amy, Yanex, Luis (2006)1 passenger dead, 11 injured after cruise ship fire.
Miami Herald (Miami, Florida
arnival ruise Lines
It is a strange reality that part of what made arnival ruise Lines the spirit of a "Fun Ship" came about because of how their vessel ran aground on its maiden voyage. The company literally used that experience to propel itself forward into a successful business model (442). Now it must live with the reality that when a similar mistake occurred, innocent customers perished. And there is no getting around the fact that this event will challenge every otherwise successful element of its bottom line and reputation and force it, like Wal-Mart did, take another look at the strategies for the future. Only now arnival has to do so in the beginning of a massive organizational disaster centering on the osta oncordia (Lazarus, 2012).
But the fact is that mistakes of judgment (whether from a given incident or as a result of a business strategy) happen, and that does…...
mlaCarnival has over its history set itself on a specific course designed to attract a market of customers comfortable paying a reasonable price (relatively speaking, about the same as a regular hotel) for at least decent services. In the mind of their management, there was nothing wrong with having a "beer and pretzel" business (445) as long as one's customers could opt to buy the finer kinds of wines and cheeses during their trip. This was why it pursued aggressive strategies to identify its own brand and then found to stay true to that conceptualization.
The economy and the American mentality at the time of its growth were open to having an option of a cruise that was not just for the wealthy and the exclusive. Carnival focused on what they and others offered on board, but under it all they recognized that people would pay a reasonable price to get to the destination ports because what they could experience there was enough to off-set not getting all the luxuries often though associated with ocean travel (443). The put this strategy forward at the same time that the mass entertainment sector was offering its audience a look inside the Love Boat and the remade Titanic movie where once again the average passenger might well be able to mix with the well-off. Carnival Cruise Lines was good at making its customers feel comfortable with what they bought just as Wal-Mart did when it gave the average small consumer a taste of a one-place affordable option for shopping and sometimes being entertained (Kaufman, 2009).
Unfortunately for Carnival, the emerging accident that they must now face down will exacerbate the realities of the slow economic times (Lazarus, 2012). This would have hit them anyway, and still will (post disaster response) require them to adapt to the fact that their target consumer group is becoming harder to identify. The disappearance of the American middle class and the fact that consumers are able to shop smartly using technology has made it necessary that they look again at how they market and promote what they have to offer. They've been going head to head with their competitors and have been benefiting with the fact that American cruise tourists like the bigger ships, appreciate the relatively affordable room costs, and want to see if the rest of the world is doing better than our nation is (CLIA, 2010). But the targeted middle-class population is still shrinking and in the face of rising fuel costs, high profile environmental and disease incidents and the uncertainty of the global markets, present unique challenges. Wal-Market has openly moved toward including local farm produce and organic groceries and redefining itself as the carrier of these eco-friendly products. Can Carnival do the same when 80% of its people have not yet and may not now
Carnival Cruise Lines
hat threats exist for the future performance of the cruise-line industry and, specifically, of Carnival Cruise Lines? If you were in charge of Carnival, how would you (a) try to prevent these threats from becoming reality, and (b) deal with them if they were realized?
There are numerous threats imaginable that could potentially affect Carnival Cruise Lines in the future; everything from the swine flu, to greater regulation of international water, carbon taxes and even terrorism could play a role. Basically, anything that would somehow disrupt the cruise lines business flow could be considered a threat to their profitability and sustainability. Furthermore, the range of the specific types of potential threats seem to fail within three broader categories; threats to safety, threats from regulatory agencies, and threats imposed from suitable alternatives.
The first threat mentioned, threats to safety, involves anything that could injure passengers' while participating on a cruise trip.…...
mlaWorks Cited
Carnival Corporation. "Code of Business Conduct & Ethics." Carnival Corporate Information. 2006. (accessed February 10, 2011).http://phx.corporate-ir.net/phoenix.zhtml?c=140690&p=irol-govconduct
Public Health & Drinking Water. "Norovirus Sickens Nearly 700 on Cruise Ship." Water and Health. December 4, 2006. / (accessed February 10, 2011).http://www.waterandhealth.org/tag/news
These menus must be diversified. In addition to this, such a strategy reveals the company's interest in its employees, which increases their motivation.
No Socializing with Passengers Policy
The socializing activity between passengers and employees is a sensitive issue. Some of the employees are allowed to communicate with the passengers, while others are restricted from this activity. This creates dissentions between crew members and affects their morale. The managers must decide whether to allow other crew members to socialize with passengers, or to restrict this activity.
In order to make a correct decision, managers must take into consideration the fact that customer satisfaction represents the focus of the company's strategy. Therefore, it is recommended to conduct several surveys on passengers in order to identify their opinion regarding the socialization with crew members. This is because some of the passengers like socializing with crew members and enjoy their company, while others prefer not…...
mlaReference list:
1. Improving Employee Morale: Motivating your Employees (2010). Essortment. Retrieved March 27, 2011 from http://www.essortment.com/improving-employee-morale-motivating-employees-25829.html.
2. Guffey, M. et al. (2010). Business Communication. Nelson Education Ltd. Retrieved March 27, 2011 from http://books.google.ro/books?id=W6DCJ0cLf3MC&pg=PT22&dq=communication+challenges+work&hl=ro#v=onepage&q=communication%20challenges%20work&f=false .
3. Brislin, R. (2008). Working with Cultural Differences. Retrieved March 27, 2011 from http://books.google.ro/books?id=wLFls4bED1QC&printsec=frontcover&dq=cultural+differences&hl=ro#v=onepage&q&f=false .
4. Hokins, B. (2009). Cultural Differences and Improving Performance. Retrieved March 27, 2011 from http://books.google.ro/books?id=jPkPgi4RPdoC&printsec=frontcover&dq=cultural+differences&hl=ro#v=onepage&q&f=false .
The most important types of negotiations are deal-making, decision-making, dispute-resolution, value-claiming, and value-creation negotiations. Deal-making negotiations refer to buying and selling. Managers in this case are expected to develop numerous negotiations of this type. Decision-making negotiations refer to reaching agreement in situations with numerous choices. This is usually the case in multicultural teams where conflicts are rather frequent. Value-claiming negotiations refer to reaching distributive agreement. This is the case between different departments of the same company. Dispute-resolution negotiations are frequent in situations of conflict. Value-creation negotiation refers to reaching integrative agreement.
Culture in negotiations is represented by the interests, priorities, and negotiation strategies of business partners. In order to ensure the success of negotiation processes of Allure's managers, it is important to understand the culture of their business partners. They must be able to identify the interests of these business partners because they rely on the needs and reasons that…...
mlaReference list:
1. Frey, B. & Osterloh, M. (2002). Successful Management by Motivation. Retrieved April 10, 2011 from http://books.google.ro/books?id=ScTvqTbKB7IC&printsec=frontcover&dq=management+motivation&hl=ro#v=onepage&q&f=false .
2. Kumar, K. (2005). The Culture and Negotiation Strategies. Retrieved April 10, 2011 from http://www.indianmba.com/Faculty_Column/FC178/fc178.html .
3. Wall, S. et al. (2010). International Business. Pearson Education Ltd. Retrieved April 10, 2011 from http://books.google.ro/books?id=wGPilQPhxWMC&pg=PA322&dq=ethnocentric+approach&hl=ro#v=onepage&q=ethnocentric%20approach&f=false .
4. Ungson, G. & Wong, Y. (2008). Global Strategic Management M.E. Sharpe, Inc. Retrieved April 10, 2011 from http://books.google.ro/books?id=-Mv7U69x9mcC&pg=PA548&dq=managers+relational+skills&hl=ro#v=onepage&q=managers%20relational%20skills&f=false .
Future of the Cruise Line Industry
The cruise line industry, along with the entire travel segment, suffered considerable losses in revenue immediately following the September 11, 2001 orld Trade Tower attacks. This drop in ticket sales, coupled with a weak economy, has severely hurt the cruise line industry. Some companies have filed bankruptcy and there have been many buy-outs and mergers as a result of recent events. In the short run things look bleak for the cruise line industry. However, the long-term paints a different picture for three main reasons. First, the cruise line industry has been a leader in the steady growth being experienced by the entire travel segment for the last ten years. Second, the industry is seeing expanding markets in Europe and new markets emerging in Asia. The third reason to expect long-term growth is that the cruise lines are now offering their customers a wider variety…...
mlaWorks Cited
Banc of America Securities, PRIVATE
Travel and Leisure companies Poised to Fare Well in 2000 due to Steady Growth in Economy, Hotel Online Special Report. SAN FRANCISCO, Oct. 1, 1999
Curtis, Glenn. Despite Stormy Seas, Cruise Industry Will Rebound. TheStreet.com, Inc.
Merchant of Value. 09/25/2001. accessed March 2002.http://www.street.com
This third priority will eventually require the development of a Service-Oriented Architecture (SOA) that includes an enterprise content management (ECM) system that tracks internal documents, standard operating procedures and makes training more effective. As part of the SOA there also will need to be a unified Web-based portal that provides a glimpse of each customers' record and gives insights into how the onboard experience can be customized for them.
ibliography
Todd Datz. "All Hands on Tech; Designing an it system from scratch can be both daunting and thrilling. Now imagine building it remotely for the world's newest, biggest ship. The story of how it supports the Queen Mary 2, a veritable floating city. "CIO 15 Jun 2004: 72-78. AI/INFORM Global. ProQuest. 13 Jun. 2008
Marshall Lager. "Pointing to Profits. " Customer Relationship Management 1 May 2006: 24-28,30. AI/INFORM Global. ProQuest.. 16 Jun. 2008
Tom Murphy. "IT matters. " International Cruise & Ferry Review…...
mlaBibliography
Todd Datz. "All Hands on Tech; Designing an it system from scratch can be both daunting and thrilling. Now imagine building it remotely for the world's newest, biggest ship. The story of how it supports the Queen Mary 2, a veritable floating city. "CIO 15 Jun 2004: 72-78. ABI/INFORM Global. ProQuest. 13 Jun. 2008
Marshall Lager. "Pointing to Profits. " Customer Relationship Management 1 May 2006: 24-28,30. ABI/INFORM Global. ProQuest.. 16 Jun. 2008
Tom Murphy. "IT matters. " International Cruise & Ferry Review 1 Oct. 2003: 153. ABI/INFORM Trade & Industry. ProQuest
13 Jun. 2008. www.ebscohost.com
Carnival Cruise Lines- What specific steps has Carnival Cruise Lines taken to benefit from global social changes?While before sea travel for pleasure was an opportunity available only to the very rich, during the th century, cruises increasingly became a form of accessible leisure travel to the less wealthy. In fact, they enabled people to take their families on vacation, have a reliable place to stay, and offered entertainment even between ports. By operating under flags of convenience, cruises like Carnival could sail in international waters, and also take advantage of lower taxes and lax labor laws in desirable areas of the world to cruise. Operating as a Panamanian company also enables the company to benefit from that nations lower tax rates yet still benefit from being listed on the New York Stock Exchange (NYSE).Despite global economic downturns, Carnival has been able to flourish, since many people seeking vacations consider cruises…...
mlaReferencesCarnival drops mandatory COVID-19 testing for vaccinated passengers. (2022, August 12). Reuters. E. (2022, April 21). Stormy seas or smooth sailing? What lies ahead for the global cruise industry. CNN. https://www.cnn.com/travel/article/future-of-cruising-cmd/index.htmlhttps://www.reuters.com/business/carnival-drops-mandatory-covid-19-testing-vaccinated-passengers-2022-08-12/ Garay,
Industry Overview
According to the Florida Caribbean Cruise Association, an estimated fifteen million passengers took cruises in 2010, which is a record-breaking figure (FCCA 2011). Over forty-percent of all cruise passengers booked itineraries that included Caribbean destinations, making it far and away the most popular region for cruises and cruise destinations (FCCA 2011). The FCCA also notes that increasing numbers of ships will likely increase cruise takers dramatically (FCCA 2011).
The numbers projected by the Florida Caribbean Cruise Association is fairly well in keeping with numbers projected by both Carnival and oyal Caribbean. oyal Caribbean actually estimates that more than eighteen million passengers were carried on cruise lines during 2010, though its estimate for the number of additional passengers that will (or can) be carried due to the addition of several ships is more directly in line with the FCCA's numbers; Carnival does not publish the same direct figures, but by both…...
mlaReferences
Carnival. (2010). Annual Report. Accessed 16 July 2011. http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDE2NTA1fENoaWxkSUQ9NDI4ODE2fFR5cGU9MQ==&t=1
Florida Caribbean Cruise Association. (2011). Industry overview. Accessed 16 July 2011. http://www.f-cca.com/downloads/2011-overview-book_Cruise%20Industry%20Overview%20and%20Statistics.pdf
Royal Caribean. (2010). Annual Report. Accessed 16 July 2011. http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9ODkzMzR8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
Our motto is to leave things as they are, without trying to substantially change the local economy and cultural structure of the land. Of course, Sustainable Cruisers are interested in learning about local handicrafts and practices, but they come as observers, and do not demand any additional accommodations are made for their presence. Staff members are all oriented in the culture of the region, and many have family members who are local to the area.
Depending on the nature of the your island's infrastructure and the comfort of residents and leaders, cruisers can go 'free cruising' and wander on their own throughout the island, or they can be required to follow a guided tour. Local members of the population can act as ancillary guides to the on-board cruise leaders. Sustainable Cruises always seeks to incorporate local members of the island when presenting the region to tourists. Additionally, locals are often…...
Carnival Cruise Lines is one of the largest cruise ship lines in the world. Headquartered in Miami, the company operates under the Carnival, Holland America, Cunard, Princess, Seabourn, P&O and Costa brands. The cruise ship industry is highly-competitive, and risks being at overcapacity, but Carnival has been consistently profitable over the years, earning $15.4 billion in revenue and $1.07 billion in net income (MSN Moneycentral, 2014). It is estimated that Carnival is the largest company in the industry, with a share of around 47.7% by passengers, and 41.8% by revenues (CMW, 2014).
Despite this success, there are still several challenges for Carnival. First, the company needs to extent both market share and profitability. The company's share has dipped slightly, and so has the company's profitability (MSN Moneycentral, 2014). This is a function to many large new boats from competitors starting to eat away at Carnival. The market is growing, and there…...
mlaReferences
CMW (2014). 2014 world wide market share. Cruise Market Watch. Retrieved December 4, 2014 from http://www.cruisemarketwatch.com/market-share/
MSN Moneycentral. (2014). Carnival Corp. Retrieved December 4, 2014 from http://www.msn.com/en-us/money/stockdetails/financials/fi-CCL?ocid=qbeb
Rosenbloom, S. (2013) Taking a hard look at cruise-ship problems. Seattle Times Retrieved December 4, 2014 from http://seattletimes.com/html/travel/2020948268_cruisecalamatiesxml.html
1. Should Carnival do “CRM?”
Carnival should definitely do CRM. Carnival obtained its identity as the “fun ship” when its maiden voyage ran onto a sandbar: the management team turned the disaster into a enjoyable experience for passengers by opening the bar for them. It was an inspired reaction to a difficult situation—and it helped to earn the cruise line its reputation.
However, having developed over the decades and become a mid-tier line (neither on the cheap nor on the expensive side—though it does offer an experience that competes just as well against any of the luxury brands), Carnival wants to expand its services to the untapped market in North America—i.e., all the people who have never been on a cruise before. To attract those customers and get one-time cruise customers to become repeat customers, CRM is necessary.
CRM is customer relationship management and it is data-dependent. That means it requires some assistance…...
Empress Luxury Lines Case Study
The situation faced by Antonio definitely is a difficult one. On the one hand, Kevin could be jeopardizing the health and well being of the company if he chooses to approach the insurance company and tell them about the incident. Yet, on the other, Antonio would essentially be condoning criminal behavior I he simply sweeps the situation under the rug to avoid potential consequences. With everything taken into consideration, Antonio should take an individualistic approach and allow Kevin to make the choice he is going to make, thus protecting the ethical and moral sanctity of the company despite any consequences that may arise.
There are two main approaches that would govern potential decisions to be made by Antonio. First, there is the utilitarian approach that aims to produce the best result for all members in the organization. This ethical approach looks at the overall utility of actions…...
mlaReferences
Daft, Richard L. (2012). Management. 10th ed. Cengage Learning.
Dykes, J'Mikel. (2010). Top ten management of the utilitarian approach to ethics: An overview of moral worth. Bukisa. Web. http://www.bukisa.com/articles/379692_top-ten-management-on-the-utilitarian-approach-to-ethics-an-overview-of-moral-worth
Husted, Bryan W. (2001). The Impact of Individualism and Collectivism on Ethical Decision Making by Individuals in Organizations. Institute of Technology Monterrey. Web. http://egade.sistema.itesm.mx/investigacion/documentos/documentos/4egade_husted.pdf
21st century, significant challenges confront the modern cruise ship industry. The four most prominent are industry concentration resulting in a lack of product diversification, an ever increasing expansion in the tonnage of ships requiring further investment in port facilities, a limited number ports of call producing tourist over-crowding and an environmental record that demands improvement and may be an expensive source of litigation. Through an understanding of these issues, the cruise ship industry can ensure its viability looking forward.
The cruise ship industry is dominated by four major companies: Carnival Lines, Royal Caribbean, Norwegian Cruises and MSC Cruises. The remaining 4% of the industry which is not controlled by these behemoths faces significant challenges to operate. modern ship able to carry thousands of passengers can cost over 1 billion dollars and takes 4 years to launch from order to delivery. Due to this high buy-in cost, this phenomenon results…...
mlaA third area of concern for the cruise ship industry is over-crowding both in regards to ships and tourists. There are only so many islands to visit and harbor facilities that can accommodate ships of the current magnitude. This results in significant demands on existing port facilities to manage multiple ships as well as an overcrowding of port cities and attractions when multiple ships arrive. This can result in decreased tourism as customers may look elsewhere to visit tourist attractions without the throngs of fellow tourists surrounding them. Two steps that could be taken would be to develop new ports of call and to establish some system of organization between cruise ship companies to better manage ship traffic reducing the strain on any one port.
Finally, an issue that has received little attention in the industry is that of environmental impact. The small islands that cruise ships visit are particularly sensitive to environmental degradation in light of the thousands of visitors and the significant demands of the ships themselves in terms of water and waste disposal. Eventually, ports will reach a maximum capacity that will either require further investment or will simply be un-modifiable based on either local politics or environmental reality. Furthermore, the industry has extremely poor environmental self-monitoring. In 1999, Royal Caribbean paid U.S.$18 million in fines for the illegal release of hazardous waste and then lying about it in its records. As nations and states such as Hawaii and Alaska adopt more stringent environmental regulations it will inevitably drive up the operating costs in these markets as well as negatively influence customer perspective of the industry.
In conclusion, the modern cruise ship industry faces significant obstacles that must be overcome in the years ahead to maintain its profitability. Greater competition should be foster to improve product diversification, significant investment to expand port facilities must be found to handle newer massive vessels, newer ports of call and organizational principles should be established to reduce over-crowding of existing destinations and finally environmental standards should be enacted within the industry to protect both destinations as well as the industry's public image. It is only by understanding these issues that the cruise ship industry can take meaningful steps to secure its future in the 21st century.
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