Cruise ship_Not just for Grandma and Grandpa anymore CHAMBUU MARIE SUDIANA MARKO ANJA TRAN THI BATTULGA 巴圖 NIKKI MARTINEZ COLYN 許毓殷 MARINIC 馬可 GRGIC 安利敏 THANH LOAN M997Z207 馬妳琪 M997Z208 M997Z237 M997Z206 M997Z205 陳氏青鑾 M997Z215 Contents Overview about cruise ship Cruise lines & Market share Change in cruise ship industry SWOT analyses Conclusion Cruise ship Industry A large ship coined in1818, operated out of New York City the first shipping establishment, offering a scheduled from the U.S. to England. Until 1975-1980, cruises offered shuffleboard, deck chairs, "drinks with umbrellas and little else for a few hundred passengers." After 1980, they offered increasing amenities. As of 2010, city-sized ships have dozens of amenities. Thanh Loan This industry is now one of the fastest growing sectors of the travel industry. The global cruise ship industry sees an annual growth of about 7 percent. There have been nine or more newly-built cruise ships added every year since 2001 Thanh Loan Appealing destination to cruise ship. Most appealing destination to cruise ship. Caribbean 45% Alaska 25% Bahamas 25% Hawaii 15% Europe 9% Panama canal 8% Mexico 8% Source: CLIA 2008 Market profile study Thanh Loan The number of passengers in each year (1990-2010) Year Number of passengers (million) Year Number of passengers (million) 1990 1997 1999 2000 4,5 6,8 8,7 8,0 2002 2003 2004 2006 9,22 9,5 10,6 13,8 2001 8,4 2010 17,0 Source: CLIA 2008 Market profile study Thanh Loan Cruise lines &Market share Cruise lines’s Capacity Capacity Cruise ship industry’s market share Cuise line North America Rest of world Carnival 126,785 78,517 Royal Carribean 89,225 10,247 Louis 10,174 Thomson 7,153 Source: CLIA 2008 Market profile study Battu The combination of an attractive vacation value and marketing buzz surrounding new ship designs will provide opportunity to introduce new cruisers to the cruising experience. This will stimulate market growth for the industry through 2013. The end of 2013 projects passengers carried to reach 21.3 million, a 15.7% increase from 2010 Battu Major competitors and Market share * Total worldwide cruise passenger capacity will increase 6.9% over 2009. * Annualized total passengers carried worldwide in 2010 are estimated at 18.4 million. * The total worldwide cruise market is estimated at $26.8 billion, a 7.4% increase from 2009. Battu Changes in Cruise ship industry Factors: Titanic Facilities Price Advertising and Promotion Customer Segment Port Location Sudiana Factors Titanic The release of Titanic movie, about a passenger ship that sank somewhat turn out to have a surprising impact towards the demand for cruise vacations, for instance Royal Caribbean experienced their largest booking during the month following the movie release. Facilities New ships were built much bigger and steadier to improve their physical facilities and service include by adding casinos, shopping arcades, theatres, health spas, internet access in every stateroom, suite with private balconies, and even a skating rink. Sudiana Factors Price Price were adjusted to the type of cruise, shorter and cheaper cruise were available for price-sensitive customer. Advertising and Promotion Major sums were devoted to advertising and promotion programs to inform the customer about the type of cruise, the rates and the amenities available. Sudiana Factors Customer Segment Ship designs, onboard amenities and activities, food and beverage options, itineraries, and prices were all tailored to specific demographic, social, and lifestyle groups. For instance, P&O Princess launched “Ocean Village” cruises in the Mediterranean in 2003, targeted at younger couples who enjoy sports and educational activities. Sudiana Port Location Ships were located in more ports around the world - from Southampton in the United Kingdom to Hong Kong, Majorca, Australia, and even Galveston, Texas - to draw passengers from a wider geographic area. Sudiana SWOT ANALYSIS Nikki STRENGTHS EXCEPTIONAL VALUE PROPOSITION WIDE APPEAL POSITIVE GUEST DEMOGRAPHICS FAVORABLE SUPPY AND DEMAND BALANCE CONSISTENT MARKET GROWTH Nikki WEAKNESS SMALL SEGMENT OF TOURISM ECONOMIC DOWNTURN Nikki OPPORTUNITIES Globalization- deterritorialization” Growing middle class in many countries (ASIA) Expanding cruise tours to Asian countries Changes in consumer perceptions of vacation (cruise ships as a real destination, not ports) Variety of lifestyles- satisfying demands Anja THREATS Terrorist attacks – modern piracy High energy costs Natural disasters- tsunami, typhoons; Demand and supply concentrated in North America- less buying power Potential changes in “FLAG OF CONVENIENCE” system Pollution of harbors Anja Conclusion Marko Cruise ship industry today invests a lot of effort to sustainability Climate Change Energy Reduction Environmental Footprint Shipboard Waste Management Shipboard Wastewater Management Environmental Compliance Environmental Training ISO 14001 Certifications Corporate Governance – Health, Environmental, Safety and Security Employee Training and Benefits Sustainability/ Corporate Social Responsibility Marko Energy reduction (ISO 14001 Environmental Management Systems (EMS): Itinerary and arrival/ departure changes Vessel shore power installations (“Cold Ironing”) Optimization of diesel generator use at sea and in port Installation of more energy efficient lighting Use of anti-fouling release coating (marine coating) technology Marko Heating, Ventilation, and Air Conditioning (HVAC) Control/ Automation Systems Periodic cleaning of propellers and hulls Dynamic Trimming Assistant (DTA) systems Evaporator management Development of new ships’ ability to use alternative fuels Thank you for attention!