Cruise Ships
Not Just for Grandma and Grandpa Anymore
ANDY
MARTIN
MARY
RINKA
NAN
CATHY
About the Cruise industry
•
•
•
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13.05 million passengers in 2008
70% of the passengers are from the US
Generated 357,710 jobs in the US
Paying a total of $16.2 billion in wages and
salaries
• Average length of a cruise is 7.2 days
About the Cruise industry
• First cruise ship built in 1900
• Biggest cruise ship:
– The Independence Of The Seas
– owned by Royal Carribean
– accomodates 4370 passengers
– 339m long
About the Cruise industry
• Before the 1980s, sea cruises were viewed as a
vacation for elderly people
• That changed and the industry averaged an 8.5%
annual growth in bookings throughout the 1990s
• Ships were registered in countries that had low
taxes and operating costs
• Terrorism, high energy costs, increased pollution
from harbors... made the industry slow down a
bit in 2002
Product
Many new ships were
built that were not only
much bigger and
steadier than their
predecessors, but also
incorporated amenities
Product
Understanding and catering to the
differing needs, desires and purchase
criteria of different customer
segments
Product
Contemporary/ Resort class
Value-oriented cruises of 3-7
days, casual environment,
newer or recently renovated
ships, lots of open deck and
pool space…
Organized activities, dancing
and buffet-style meals.
Product
Premium cruises offer similar activities to a
mainstream cruise line but with more upscale
amenities and service.
Holding between 500 and 1,500 passengers and
offering more space per guest than contemporary
vessels.
Product
Premium
Semiformal, premiumquality cruises of 7
days or longer, ships
designed to offer more
attentive service,
theme lounges,
theaters, cigar bars,
games, fitness
facilities, …
Product
Luxury
Cruise emphasize greater
choice of food, beverage,
and entertainment
options in more formal
atmosphere, more
spacious & luxurious
accommodations,…
Product
Luxury cruise ships are often
smaller than others, holding
anywhere from 100 to 1,000
passengers.
However they offer a higher ratio
of staff to passengers to ensure
every attention is paid to passenger
comfort. The luxury cruising niche
generally appeals to mature,
experienced
travelers
more
interested in life enrichment as
opposed to a high onboard activity
level. With a very high percentage
of repeat passengers, luxury cruises
generally enjoy the highest
customer satisfaction levels.
Product
Exclusive, yachtlike environment
with only 100-200
passengers, high
staff-to-customer
ratio allows highly
individualized
service
Place
Locating in more ports around the world to draw
passengers from a wider geographic area.
Price
 Prices tailored to specific groups
 Adding shorter and cheaper cruises
 Different prices for types of cruises
Promotion
Advertising programs
Developing long-term relationships with past customers
For instance: Carnival offered substantial discounts to past
customers
Always understanding of what new customers want from a vacation
and how they make their leisure purchase decisions
STP Analysis
S = Segmentation
T = Targeting
P = Positioning
“STP”
Analysis
Segment characteristics and behavior
needs.
The family building.
The independent life
(No children)
The life remaining.
The court life.
(A child, but not growing)
(Children grow)
Segment and Product Positioning
Independent life
Segmentation and
Behavior needs
+ relax
+ gain more experience
from different parts of the
world
+ sports, other activities
+ exciting vacation
+ good memories
Product positioning
+ activities, games, and parties
throughout the trip
+ varies destinations
+ longer destination cruises for
singles
+ Sports e.g..
-Scuba diving,
-Fishing, fly fishing
- Jet ski – kayaks
- Surfing
- Diving
www.themegallery.com
Segment and Product Positioning
Family Building
Segmentation and
Behavior needs
Product positioning
+ Varies romance place e.g.
- room
http://api.ning.com/files/cJUn1CUp1q1GfGmDfgDk- restaurant
- romantic memories
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- comfortable bars
- sports, other couple
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- massaging services
activities
+ Sports e.g.
- relaxation
-Scuba diving,
- Honeymoon
-Fishing, fly fishing
- Jet ski – kayaks
- Surfing
- Diving
Segment and Product Positioning
Court life
Segmentation and
Behavior needs
- on their vacations
- relax and enjoy
themselves
Product positioning
The court life.
+ Special offer for children and
parent parents:
-Multi-room suites
- their children are being
a lots of fun activities for
(A child, but not+growing)
well taken care of, making
various age groups such as:
new friends, and having fun.
- Various sport
- various show
- playground
Segment and Product Positioning
Remaining life
Segmentation and
Behavior needs
Product positioning
- relaxing in healthy trip
-enjoy comfortable travel
- offering the assisted living facilities
-meditation
The life remaining.
- daily helping
- offer all trip nursing cares
(Children grow)
- health care travel
- massage and interesting therapy
Conclusion
• The cruise industry may have some problems
they need to attend to
– Terrorist threats
– Political unrest around the world
– High energy costs
– Pollution from harbors and cruisers
– Sicknesses and epidemias on the cruises
– Over-capacity
Conclusion
• The biggest challenge for the companies is to
increase the number of passenger bookings
• The ships are bigger and there are more and
more of them
• The investments in new ships are huge
• It’s important to develop long-term
relationships with past customers
• The target market are customers who have
never been on a cruise before
Q&A
What are the trends that influence
consumers, that cruise liners should be
conscious about?
1) Individualism
– they plan their own travel with their own tastes
and wishes
2) Hedonism
– about getting a taste of life and being able to
experience things
3) Concern of the environment
– important for the consumers to know that cruise
ships are concerned of the environment
4) Origins
– customers want to see something rare and
something original
What are the global issues that
have influenced the cruise
industry over the past few
years and pose challenges to
the industry?
1) economic downturns and
rising fuel prices
2) health scares
3) natural disasters
What are the global mega trends
that influence the cruise tourism
industry as a whole that will have
to be accounted for by the
industry in order for it to thrive?
1) Democratization – not only for the well off but also
common people can now participate in what has in
former times been a luxury
2) Globalization – cruise tourism as other branches is
becoming more and more globalized
- describes an ongoing process by
which regional economies, societies, and cultures
have become integrated through a globe-spanning
network of exchange.
- information help the consumers for
choosing their satisfied cruise.
example: flow of Asian tourists visiting Europe
Thank you