Cruise Ship Industry
Group 8
Marketing Management
Group 8 Members
Gift
M987Z225
Chang
M987Z221
Van
M987Z256
Steve
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Martin
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Tommy
Contents
1
Introduction
2
Expand the cruise Market
3
Scanning Environment
4
Customer Value, Satisfaction and Loyalty
5
Future Challenges
6
Conclusion
• 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.
• Cruising has become a major part of the tourism industry, with millions of
passengers each year.
• The industry's rapid growth has seen nine or more newly built ships catering to a
North American clientele added every year since 2001, as well as others servicing
European clientele. Smaller markets such as the Asia-Pacific region are generally
serviced by older tonnage displaced by new ships introduced into the high growth
areas.
• Cruise ships operate mostly on routes that return passengers to their originating
port. In contrast, dedicated transport oriented ocean liners do "line voyages" and
typically transport passengers from one point to another, rather than on round
trips. Some cruise ships also engage in longer trips which may not lead back to the
same port for many months (longer round trips)
History of Cruise Ship Industry
 Early years
 The first vessel built exclusively for this purpose was the Prinzessin Victoria
Luise, designed by Albert Ballin, general manager of Humburg-America
Line. The ship was completed in 1900.
 The practice of cruising grew gradually out of the transatlantic crossing
tradition, which never took less than four days. In the competition for
passengers, ocean liners added many luxuries — the Titanic being the
most famous example — such as fine dining and well-appointed
staterooms.
 In the late 19th century, Albert Ballin, director of the Hamburg-America
Line, was the first to send his transatlantic ships out on long southern
cruises during the worst of the winter season of the North Atlantic. Other
companies followed suit. Some of them built specialized ships designed for
easy transformation between summer crossings and winter cruising.
History of Cruise Ship Industry
 Modern days
 The 1970s television show The Love Boat, featuring Princess Cruises’
since-sold ship Pacific Princess, did much to raise awareness of cruises as
a vacation option for ordinary people in the United States.
 Initially this growth was centered around the Caribbean, Alaska, and
Mexico, but now encompasses all areas of the globe.
 Today, several hundred cruise ships ply routes worldwide. And even
larger vessels are on the horizon. Plans are set for at least two cruise
ships that will be 220,000 gross tons and hold 5,400 passengers each.
Carnival Corporation
 Carnival Corporation is a global cruise company and one of the largest
vacation companies in the world.
 Mission: is to deliver exceptional vacation experiences through the world's
best-known cruise brands that cater to a variety of different lifestyles and
budgets, all at an outstanding value unrivaled on land or at sea.
 Headquartered in Miami, Florida, U.S.A. and London, England, Carnival
operates a fleet of 92 ships, with another 13 ships scheduled for delivery
between now and 2012. With approximately 177,000 guests and 65,000
shipboard employees, there are more than 225,000 people sailing aboard
the Carnival fleet at any given time.
Carnival Corporation Brands
Carnival Corporation Brands
These brands, which comprise the most-recognized cruise brands in North
America, the United Kingdom, Germany, Southern Europe and Spain, offer
a wide range of holiday and vacation products to a customer base that is
broadly varied in terms of cultures, languages and leisure-time
preferences. We also own two tour companies that complement our cruise
operations, Holland America and Princess Tours in Alaska and the Canadian
Yukon. Combined, our vacation companies attract eight million guests
annually.
Contents
1
Introduction
2
Expand the cruise Market
How to expand the Cruise Market
• Services added : they provide more services in their ports for example
Carnival Corporation also markets and operates hotels or lodges in Alaska
and the Yukon Territory of Canada and they provide motor coaches for
sightseeing , day boats in Alaska and on the Yukon River; and sightseeing
packages
• Provides more routes and more port: to service wider geographically
customers, in this way they can get more customers from every ports and it’s
easier to get inside customer behaviors
• They have many kinds of services serving for different kind of consumers:
such as Disney launched the ships for families with young children by
offering lots of various age groups. Carnival Corporation offer wedding
package for couple or celebrate program for a reunion for any family, high
school or college.
How to expand the Cruise Market
(Cont’d)
 Serves all services and price that suit to specific geographic and
demographic segments: for example Royal Caribbean
Cruises, Ltd ,they have 5 brands to serves 5 style of consumers
 The Royal Caribbean International brand serves the contemporary and
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premium segments
The Celebrity Cruises brand operates onboard upscale ships and offer
personalized services serving the premium segment
The Pullmantur Cruises brand offers onboard activities and services
contemporary segment of the Spanish and Latin American markets
The Azamara Cruises brand serves for a deluxe cruise segment in the
North American market
The CDF Croisieres de France brand services the contemporary segment
of the French cruise market
Primary Method of Competition
among Cruises Market
 Cruise Facilities – onboard amenities, sport and educational
activities.
 Cruise Pricing – include advertising and promotion program to
attract price sensitive customers.
 Cruise Destination – new horizons and more ports around the
world.
Contents
1
Introduction
2
Expand the cruise Market
3
Scanning Environment
Identify the market wants
 To understand and cater to
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differing customer needs.
Desires of Cruise Shipping for a
specific services that will satisfy
the needs.
Affordable cruises with shorter
distance.
Purchase Criteria of Different
customer segments.
The need of new experience
travelling to various place around
the world.
Anticipate the environmental
awareness issue.
Cattering to variety of Demands
 Provide various ship designs
 Onboard amenities
 Activities on the journey.
 Food and beverages option, itineraries.
 Save Energy plan, conclude to environmental friendly awareness.
 Conduct feasibility study on the environmental impact assessment.
Contents
1
Introduction
2
Expand the cruise Market
3
Scanning Environment
4
Customer Value, Satisfaction and Loyalty
Customer Value Analysis
Cultural Factors
 High class customers
 Luxury vessels
 Long distances
 Impeccable services
 Premium price
 Price – sensitive customers
 Recently renovated ships
 Short distances
 Casual services
 Cheaper price
Customer Value Analysis
Social Factors
+ Family
 Youth atmosphere (fun youth counselor).
 Public facilities for family (extensive pool, nursery room)
 Kids programs (infants/toddler group care)
 Active sport facilities (ice skating, basketball court, mini golf,
rock wall climbing)
 Competitive price
 i.e. Royal Caribbean International, Carnival Cruise Line,
Disney Cruise Line
Customer Value Analysis
Personal Interest Factors
 Singles : want to have non – stop entertainment
 Younger couples : enjoy sports and educational activities
 Honeymooners : romantic atmosphere
 Families with young children : large and multifunction
room suites, supervised activities
 Elderly peoples : sedate vacation
Customer Value Analysis
Psychological Factors
+ People are motivated to cruise
 New and exciting travel experience
+ People perception of cruise ships
 Gorgeous ocean – view vacation
 Multiple destinations with minimal hassle
Satisfaction and loyalty
Types of
consumer
Singles
specification
+ meet a potential mate
+ relax
+ experience new
different parts of the
world
Cruise ship lines
+ Holland America
+ Crystal’s Serenity
+ Single Cruise
+ Travel Time for Singles
Services
+Sailing Solo
Singles-Friendly Activities,
Smaller Ships ,“Single Partner
Program”, “double occupancy” , singles
introduction dinners,
mixers, and activities
+ activities, games, and parties
throughout the cruise, not given
designated seating arrangements
for meals
+ destination excursions to the
Mediterranean, Tahiti, French
Polynesia, Bora Bora, and even
Moorea
+ longer destination cruises for
singles
Satisfaction and loyalty
Types of
Consumer
Young
couples
specification
+ Enjoy sports,
education activities
+ prefer romantic
vacation
+ last a lifetime in
memories
Cruise ship lines
+ P&O Princess
+ Carnival cruise
Services
+ Scuba diving, guormet cooking, wine
tasting.
+ Fishing, fly fishing
+ Jet ski – kayaks
+ Surfing
+ Special picnic
+ Diving
Satisfaction and loyalty
Types of consumer
Honeymooners
specification
- Memorable honeymoon.
- rejoice in the pristine and
peaceful environment
- romantic and relaxing time
Cruise ship lines
Services
- Haumana Cruises Line
- Carnival Cruise Line
- Princess Cruise Lines
- Royal Caribbean Cruise
Lines
+ Inside Romance (couples'
massage. The foyer lounge
and the cigar
bar...)Onboard
Dining,Onboard Special
Events( contain wedding
chapels...)
+ Inside Romance (private
corner of the Sunset Bar)
+ quiet and comfortable
ambience in the
Wheelhouse Bar
+ has dedicated wedding
chapels and the ships
captains are empowered to
perform wedding
ceremonies with the live
web cams onboard
Satisfaction and loyalty
Types of consumer
Families with young
children
specification
Cruise ship lines
Services
- on their vacations
- relax and enjoy themselves
- Disney Cruise Line®
(Disney Magic, Disney Wonder)
- their children are being
well taken care of, making
new friends, and having fun.
- Cunard cruise
(the Queen Elizabeth 2, Queen
Mary 2 and Queen Victoria.)
- designed especially for
children parents:
Multi-room suites and a
lots of fun activities for
various age groups
- Princess cruise
Satisfaction and loyalty
Types of consumer
Older peoples
specification
Cruise ship lines
- enjoy travel, have good
cognitive function, but need
some help in daily living are
ideal candidates
- patients (cruise ship care)
- Azamara Cruise
(http://www.azamaracruises.
com)
- Carnival Cruise
http://www.carnival.com
Services
-assisted
living facilities
-nursing homes
- Celebrity
http://www.calebrity.com
- MSC Cruises, …
-24 hours a day home
caregivers,
Satisfaction and Loyalty
 Onboard fun:
 Dine it up
 Onboard activities
 Spa Carnival
 For the children
 Celebrate! Wahoo!
Satisfaction and loyalty-Destinations
Satisfaction and loyalty
Market shares of the major cruise ship owners in 2005 (gt-per
cent share)
Satisfaction and loyalty
 Facilities provided for Onboard fun:
 The Restaurant
 The Club
 Internet Center
 Whirlpool
 Spa Center
 Midnight Sun Lounge
 Casino
 Library
 Gymnasium
Satisfaction and loyalty
 diversifying choices of
cruise ships packages
Satisfaction and loyalty
 Building loyalty:
 Offer different privileges for different types of customer: firsttime cruiser, experienced cruiser, past cruiser.
 Provide best services on board
 Provide the customers best protection, safety, and guarantee to
enjoy onboard fun:
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Triple protection plan
Vacation guarantee: the only money-back guarantee offered in cruise
industry.
Vacation protection plan: the insurance program with greatest value
in cruising.
Satisfaction and loyalty-achievements
Satisfaction and loyaltyachievements
Metric
2004
2005
2006
Ships
77
79
81
6,306,000
Rev/passenger $1,542
Passengers
6,848,000
$1,619
7,008,000
$1,689
Contents
1
Introduction
2
Expand the cruise Market
3
Scanning Environment
4
Customer Value, Satisfaction and Loyalty
5
Future Challenges
Future Challenges and advice to
solve these problems
 Terrorist
Reinforce the security check，try to prevent from being the target of
terrorist.
 Political unrest
Do not arrange trips projects to these countries，then we can avoid these
series problem.
Future Challenges and advice to
solve these problems (con.)
 High energy cost & energy shortage
Try to find out and use the substitute energy . Like solar energy etc…
 Over-capacity
Build more and bigger ships at an increasing rate. Try to increase the
number of travelers to fill these ships. A large amount of investments are
needed to fulfill the needs of market of a greater ships with new designs.
Market Opportunity Analysis
 Develop long-term relationships
The main service should be obtained is the Customer Relationship
Management, include:
 Updated packages, special package at special price in special moment.
 Create a more friendly promotion (i.e. discount) to get attention from past
customers.
 Pay more attention to the specific wants and the most valuable want of the
past customer.
 Provide the customer relations service by any media in order to maintain
loyalty from the past customers and as a marketing media to convert non user
into customer.
Market Opportunity Analysis
(Cont'd)
 Attracting new customers
Understanding of what the non user want from a vacation:
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The need of safety and comfort vacation.
Great experience on view vacation.
Travel with leisure to various place.
Leisure purchase decisions: help the affordable for non user and help to make
decision by giving suggestion through any media.
 Converting non user into new customers with a delighted dream concept of view
vacation
 Conduct innovation in the cruise ship industry, providing smaller cruises with
cheaper price and shorter distance but keep giving the benefits of superior quality
of services.
Conclusion
Conclusion
Key of success
Suggestion
Question and Answer
Conclusion
 Cruise Ship Industry has changed its trends, not only for old age people,
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but also for every age people.
The expansion of cruise market in every segments, place, age, and
purchase criteria, even the buying power of its market has been developing
recently in order to change the people mind of travelling with cruise ship.
The dividing of market segmentation has gained the cruise ships vacation
popularity in the new generation.
Find out the customer value, providing satisfaction and building loyalty, as
the marketing strategy shifting from day to day.
Meet the purchase criteria of leisure for each customers vacation, and
providing information in order to manage the marketing strategy.
Potential growth for the cruise ship industry came from converting non
user into new customer.
Key of Success
 Firms invested heavily in improving their physical facilities.
 Strong geographic presence.
 Understanding and catering to the differing needs, desires, and purchase
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criteria of different customer segments.
Observing the Competitors.
Upholding brand image and strong brand portfolio.
Staying on top of marketing and innovation.
Redefine the cruise ship vacation, for a wider market.
Develop the measure of scale for various level of people.
Design various scales for each market segments.
Innovate on ship designs and size, also its amenities
Provide more services and benefits at competitive prices.
Make a cruise ship vacation as an affordable and trendy lifestyle.
Suggestion
 The cruise industry should have a free trial experience for the non user but
be selective on the targeted market, in order to convert the non user into
loyal customers. The idea is to attract new customers especially from
different region, i.e. Asia to offer more of selection than competitors.
 For the intense competition especially land based vacations, the company
should try to maintain high quality of service expected by the customers
and also in order to avoid the eroded market shares from competitors.
 A system should be developed to measure how quickly and satisfactorily
customers needs are being met. The system should also look at how the
services can be expanded and improved.
 The company should increase their marketing campaign focus on the
different price ranges, with adding shorter distance at affordable price, the
many ports and the high quality superior service and need to develop
budget more concentrated on marketing and improvement of services, this
will make their products seem more unique.
Question
 How can you get the new customer if most of the vacationers around
the world still consider the cruise rate was still too high?
 In order to have marketing campaign on the industry, what is the real
concept that we will offer as a company to the vacationers?
 Why does the company have to maintain its luxury services if there is
still a vast majority of vacationers won’t choose this type of vacation
because of the price sensitive?
Answer
 You can get a new customer by scaling down the price rate by adding
shorter and cheaper cruise with less services, but still offer more
benefits than other competitors, actually we can provide more of
selection than competitors, so that we can still have the chance to
enlarge our market share.
 We can offer several uniqueness of our services, beside the main
concept to have a precious experience going onboard, with delightful
view vacation, and also offer more of place to go that can not limited
the customer in boundaries.
 Because there is a significant amount of market that are still put
interest on luxury trip from which the company can make more profit
and also in order to provide cheaper price with adding shorter cruise to
the industry. We can get new customer with providing new services in
our cruise line.
Thank you