Cruice Ships
Not just for Grandma and Grandpa anymore
CASE 4
MARKETING
MANAGEMENT
GROUP 06
CONTENT
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CRUISE HISTORY
MARKET SEGMENTATION
MEET CUSTOMER’S EXPECTATION
MEASURING CUSTOMER’S SATISFACTION
QUALITY MANAGEMENT
CUSTOMER’S RELATIONSHIP MANAGEMENT
FUTURE CHALLENGE & OPPORTUNITIES
QUESTION & ANSWER
INTRODUCTION
A cruise ship or cruise liner is a passenger ship
used for pleasure voyages, where the voyage
itself and the ship's amenities are part of the
experience. Its like a floating hotel, with a
complete hospitality staff in addition to the
usual ship's crew. Cruising has become a
major part of the tourism industry, with
millions of passengers each year.
INTRODUCTION (Cont’d)
The first Vessel built was the Prinzessin Victoria
Luise, designed by Albert Ballin, general manager
of Hamburg-America Line in 1900. Their purpose
remained the same as well. Oceangoing vessels
were primarily used to get from Point A to Point B,
especially for second- and third-class passengers,
whose accommodations were in stark contrast to
those in first-class staterooms. The most common
voyages were transatlantic crossings from New
York to London.
INTRODUCTION (Cont’d)
• But in 1960’s with the arrival of jet age it was
no longer fashionable, practical, or
economical to travel by boat.
• However in 1974, to boost a declining
market, Cunard Line Limited, the company
running transatlantic travel service between
New York and London with the Queen
Elizabeth II, hired international celebrities to
perform cabaret acts aboard ship.
INTRODUCTION (Cont’d)
• The QE2 Cruise liner fastest of it time in 1970’s
which was fast enough to whisk passengers from
New York to London in 4 days ushered in the
concept of "one-class" cruising, as the ship's
facilities and amenities were made available to all
passengers. Regardless of the staterooms or
berths passengers had booked, they enjoyed the
same service, menus, entertainment, and
activities. The idea caught on, and the general
public began taking cruises for short vacations,
rather than solely as a means of transportation.
INTRODUCTION (Cont’d)
–The cruise industry broke new ground again
in the 1980s launching a fleet of giant
passenger liners, some capable of carrying
over 2,000 people fully equipped with
casinos, running tracks, spas, champagne
and caviar bars, basketball courts, private
stateroom verandahs, and three-story
nightclubs. Soon people were interested in
the whole experience of just being on board
rather than using it as a mode of
transportation.
INTRODUCTION (Cont’d)
Not too long ago, a sea cruise was widely viewed
as a rather dull and sedate vacation alternative,
appealing mostly to well to do elderly people
who enjoyed playing shuffleboard, sipping tea,
and dressing for dinner.
But, the perception has changed ...
INTRODUCTION (Cont’d)
Cruising has become a major part of the tourism
industry, with millions of passengers each year.
MARKET SEGMENTATION
Demographic Segmentation
Demographic Segmentation is the most common
approach in market segmentation.
The variables are:
• Age
P&O princess launched “ Ocean Village” cruises. They are targeted at
younger couples who enjoy sports and educational activitives
• Gender (male/female)
• Occupation and Income
Affects the ticket that bought by consumers.
The ticket was categorized to : Resort class,
Premium, Luxury, or Exclusive
• Household (family - style) size
Offering multiroom suites and lots of activities
for various age.
Psychographic Segmentation
Life style
Some lines offer “ Romantic” cruise targeted at honeymooners.
While the “Health” cruise offer classes with research scientist
for Diet, Weight Loss and Long Term Health.
AIO - activities, interests, and opinions
Geographic Segmentation
• Country
Ship were located in more ports around the
world such as AMT American Express Travel
offer one trip around the world cruise divide the
itinerary into sections allowing the flexibility of
booking several sections or the entire cruise
depending on how long you want to spend at sea
and the places you want to visit
Customer Expectations
Customer expectation will be influenced by a customer's
perception of the product or service. The level of customer
service is also a factor, and a customer might expect to
encounter efficiency, helpfulness, reliability, confidence in the
staff, and a personal interest in his or her patronage. If customer
expectations are met, then customer satisfaction will be result.
Customer Expectations
Customer expectation can be created by :
- previous experience
- Advertising
- Hearsay
- awareness of competitors
- brand image
It is too difficult to create a product that will satisfy
everybody, that is why we should focus on a segment
of the total market.
“Grouping people according to their similarity related
to a particular product category”
Measuring Customer Satisfaction
• Encourage Customer Complaints
The complaint handling systems during conferences
and meetings, in annual reports, newspapers,
association circulars, videos, audio tapes, letters,
press releases, speeches, training sessions and via
electronic
Measuring Customer Satisfaction
• Seek to Delight Their Customers
Team leaders look at and discuss variances
Additionally, employees share ideas for ways to
resolve complaints creatively within or below
company norms
Measuring Customer Satisfaction
• Understand Customer Expectations
Surveys assess customer satisfaction with
existing services, delivery of services,
helpfulness of employees, and overall
performance of the organization
Measuring customer satisfaction
• Manage Customer Expectations
Using customer feedback to understand customer
expectations and needs
• Know How to Say No
convey concern technique--calling customers and telling them
the company understands; giving the customer the best
explanation they can; and being open and honest with
customers concerning laws and policies of the organization
• Keep the human touch
Quality Management
• Based on customer segmentation, firms continuously
improving the quality of ships and service: invested
heavily in building many new ships which bigger,
steadier incorporated amenities such casinos,
shopping arcades, theaters, spas, etc.
• Based on customer profitability to expand the
services: changing in ship design, onboard amenities
and activities, food and beverage options
Quality Management
• Diversify services to satisfy every
customer needs and desires: shorter and
cheaper cruises for more price sensitive
customer, cruise for young couples and
family, and other self-design tours
Customer Relationship
Management (CRM)
• CRM is the process of managing detailed information about
individual customers and carefully managing all customer
“touch points” to maximize customer loyalty. That includes:
1. Attracting
2. Retaining Customers
3. Growing customers
4. Building loyalty
Attracting and Retaining
Customers
• Invest the physical facilities, casinos, shopping
arcades, theaters, health spas ,internet access in
every stateroom suites with private balconies,
skating rink…
• Shorter & cheaper cruises attract more pricesensitive customers
• Ships were located in more ports around the
world from Southampton in the United King Dom
to Hong Kong, Majorca, Australia, Galveston,
Texas…
Attracting and Retaining
Customers (cont’d)
• Ship designs onboard amenities & activities, food& beverage
options, itineraries, and prices were all tailored to specific
demographic, social, and lifestyle groups
• Cruise is targeted:
 Young couples are served : scuba diving, gourmet cooking,
wine tasting…
 Honeymooners , singles crowd…
 Families with young children : multiroom suites, supervised
activities..
Cruise’s Customer Grows
An example that happened in
Seattle :
In 1999 cruise ships made six trips
out of Seattle serving 6,600
passengers. By 2002 those
numbers grew to 75 trips and a
quarter million passengers.
The numbers more than doubled
again by 2005 with 169 sailings and
800,000 passengers. And in 2008
the number of trips jumps to 211.
www.king5.com
Building Loyalty
• Listening to customers
• Increase the growth in passenger bookings to fill
the growing capacity
• Have raising 16 new ships into service to 94 ships
• Through industry connections with major cruise
lines, Cruise fully customize a luxury cruise vacation
for audience. And perhaps the best part is that
Cruise promotion will become an annual event that
everyone will look forward to.
Building Loyalty
• Providing software, special computer links or
hardware to customers to help them manage key
functions adds to retaining customers.
Future Challenges
The world cruise shipping industry faces a challenging
time ahead as a number of problems continue to restrict
industry growth, mainly :
• the continuing public perception of a terrorist threat
• reluctance by some market sectors to go on cruises
• the image of cruises
• the availability of suitable itineraries
• opposition from environmentalist groups in certain
areas
• limited specialist port facilities
• low level of market penetration by cruises in Asia.
Future Opportunities
At the same time however, there are a number of
factors that suggest future industry health – these
include:
• an increasing range of cruise types and itineraries
• the increased affordability of cruises trip in many
key markets
• the introduction of ever-larger cruise ships with
more passenger and facilities
• continued propensity for global leisure travel
• the changing image of cruises
• increasing economic wealth in populous Asian
economies
Environmental Impact
• Cruise ships release vast quantities of pollution into
coastal and ocean waters. In addition to sewage, a
single ship can release up to 1 million gallons of gray
water (from sinks, baths, laundry and galleys), 25,000
gallons of oily bilge water, more than 10,000 gallons
of sewage sludge, and more than 130 gallons of
hazardous waste.
Environmental Impact
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They also emit air pollutants to the air and water. These wastes, if not properly
treated and disposed of, can be a significant source of pathogens, nutrients, and
toxic substances with the potential to threaten human health and damage aquatic
life. It is important, however, to keep these discharges in some perspective,
because cruise ships represent a small — although highly visible — portion of the
entire international shipping industry, and the waste streams described here are
not unique to cruise ships. However, particular types of wastes, such as sewage,
graywater, and solid waste, may be of greater concern for cruise ships relative to
other seagoing vessels, because of the large numbers of passengers and crew that
cruise ships carry and the large volumes of wastes that they produce. Further,
because cruise ships tend to concentrate their activities in specific coastal areas
and visit the same ports repeatedly (especially Florida, California, New York,
Galveston, Seattle, and the waters of Alaska), their cumulative impact on a local
scale could be significant, as can impacts of individual large-volume releases
(either accidental or intentional).
Question Discussion
How to minimize the
environmental impact that
caused by Cruise?
How to minimize the impact?
• Prohibit the discharge of sewage,
graywater, and oily bilge water within 12
miles of shore and within marine protected
areas.
• Establish full monitoring, reporting and
inspection of pollution discharges.
• Offering the expedition cruises and
wilderness adventures that utilizes small
ships and yachts to explore nature and
wildlife up close, like what Adventure Smith
Explorations had offered.
Question Discussion
What did Cruise do, regarding
noticed the financial crisis?
Cruise noticed
the financial crisis
Cruise lines provided cheap deals on
the market, a lot of amazing
discounts, expecially for last minute
deal.
“anything will sell if the price
is right.”
Cruise noticed
the financial crisis
This is a scramble by cruise lines to
fill ships. They want passengers on
board because what they then spend
on drinks and shore excursions is vital
to profits.
Octawati
Buntaran
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Yanni Putri
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Phailin
Thampramuan
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Nong Hong Sa
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Nguyen Pham
Nhut Thien
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Rahul Kohli
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