CRUISE SHIP
Not just for Grandpa and Grandma Anymore
PRESENTED BY : GROUP 1
Members :
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Chayaporn
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Hanh
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OUTLINE
Introduction:
- Company profile
- History
- Brands
II. Growth of Global Cruise Industry
III. Factors help build Demand for Cruise Industry
IV. Achievements of Carnival Corporation
V. Economic Impact of the Cruise Industry
VI. Future Challenges
VII. Building Loyalty of Customers
VIII. Community Relations
IX. Conclusion
X. Questions & Answers
I.
COMPANY PROFILE
Carnival Corporation
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Field: Global cruise company and vacation company
Headquarters: Miami, Florida, U.S.A. and London, England
Employees worldwide: Approximately70,000
Total number of ships: 98
Chief Executive Officer: MickyArison
HISTORY
• Carnival Corporation & PLC is
a British – American
Panamanian corporation and
the world’s largest cruise ship
operator.
• Initially formed in 1972 under
the name Carnival Cruise
Lines by the late cruise
industry pioneer Ted
Arisonand gained significant
acquisitions throughout its
development.
HISTORY
•
In 1993, the company changed its name to Carnival Corporation and continued its
expansion further into virtually every market segment of the cruise industry with
the acquisitions of Curnard Line in 1998 and Costa Cruises in 2000.
•
In April 2003, agreements were finalized to combine Carnival Corporation with
P&O Princess Cruises plc, creating the world’s first global cruise operator
encompassing 12 highly recognizable brands and making the new company one of
the largest leisure travel companies in the world.
BRANDS
Carnival Cruise Lines
Princess
Holland America
Cunard
AIDA
Costa Cruises
P &O Cruises
Ocean Village
The Yachts of Seabourn
Ibero Cruises
P &O Cruises Australia
Growth of Global Cruise Industry
• The global cruise industry averaged an 8.5 percent annual growth in
bookings throughout the 1990s. Cruise lines were among the most
profitable of all services businesses during that decade.
• Industry estimates are that 13.5 million people took a cruise vacation in
2009, with a total of 14.3 million passengers forecasted to sail in 2010.
• Nearly 40 new ships were built in the 1980s and during the 1990s, nearly
80 new ships debuted. By the end of 2009, over 100 new ships were
introduced since 2000, with 12 new vessels on the way for 2010.
FACTORS HELP BUILD
DEMAND FOR CRUISE
VACATIONS
IMPROVEMENTS IN PHYSICAL FACILITIES
• New ships were built not only much
bigger and steadier than their
predecessors, but also incorporated
amenities such as casinos, shopping
arcades, theaters, health spas.
• Internet access in every stateroom,
suites with private balconies and even a
skating rink.
• Shorter and cheaper cruises were added
to attract more price-sensitive
customers.
• Ships were located in more ports around
the world to draw passengers from a
wider geographic area.
• Major sums were devoted to advertising
and promotion programs.
A variety of tailored cruises
to different customer segments
• Firms understand and cater to the differing needs, desires, and purchase
criteria of different customer segments.
• Ship designs, onboard amenities and activities, food, and beverage
options, itineraries, and prices were all tailored to specific, demographic,
social, and lifestyle groups.
Analysis of needs of customer segments
Younger couples
• Sports and educational activities
• Scuba diving, gourmet cooking, and wine tasting
Honeymooners
• Romance, privacy, relaxation, excitement, freedom
Singles crowd
• Water sports, shore excursions, casinos, spas, bars,
Family with young children
Multiroom suites, supervised activities
Couples in 50s and 60s
Walking/jogging tracks, pool and piano bar and deck bar, bright and
pleasant dining room serving tasty food…
Achievements of Carnival Corporation
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Carnival Corporation served over 6 million customers in 2005; more than one-third of
whom sailed from ports in the United Kingdom, Europe and Australia.
Firm’s net income in 2005: $2.3 billion
Firm’s sales revenue in 2005: $11.1 billion
The firm forecasts an average of 8 percent annual revenue growth through 2009
Carnival Corporation’s report on quarterly earnings in 2010
1stquarter earnings
( US dollar)
2ndquarter earnings
(US dollar)
3rd quarter earnings
(US dollar)
Net income
$ 175 million
$ 252 million
$ 1.3 billion
Revenues
$ 3.1 billion
$3.2 billion
$ 4.4 billion
Carnival Corporation’s report on quarterly earnings in 2009
1stquarter earnings
(US dollar)
2nd quarter earnings
(US dollar)
3rd quarter earnings
(US dollar)
Net income
$ 260 million
$264 million
$ 1,1 billion
Revenues
$ 2.9 billion
$ 2.9 billion
$ 4.1 billion
ECONOMIC IMPACT OF THE CRUISE INDUSTRY
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Direct benefits:
- cruise related expenditures such as that of the passengers
and crew and employee wage.
Indirect benefits: - Passengers use the transportation, food, and lodging.
- Repair and maintenance of the ships, gas and other
fees and revenues associated with the tourism activities at
a destination.
2004
2005
2006
2004/2005
2005/2006
30.06
32.43
35.73
10.0%
10.2%
Employment 315.830
330.346
347.966
4.6%
5.3%
Wages and
salaries (US)
13.52
14.73
8.8%
9.0%
Total output
12.42
FUTURE CHALLENGES
• Terrorist attacks
• Political unrest
• High energy costs
• Over capacity
BUILDING LOYALTY OF CUSTOMERS
Interacting with customers
Miami-based Carnival Cruise Lines has been a pioneer in leveraging social
media to build customer loyalty and satisfaction. Carnival’s Senior Manager
for Interactive Marketing Strategy Jordan Corderra and Social Media Strategist
Stephanie Leavitt about how they built such a successful and loyal online
community.
BUILDING LOYALTY OF CUSTOMERS
Carnival Cruise Line’s social media components:
• Blog: John Heald’s Blog
• Virtual, interactive tour: FunShipIsland.com
• Online community/ social network: CarnivalConnections.com
• Twitter: CarnivalCruise
• Flickr photostreams
Carnival Cruises
successfully implemented social media
Carnival is having quite a popular blog, written by Carnival’s Senior Cruise Director
John Heald; John Heald’s Blog.
The blog, which was started to give insight to the behind-the-scenes activity in the life
of a cruise director, originally was a one month project but due to its success
continued and is still growing strong.
Carnival Cruises
successfully implemented social media
• Social networking:
carnivalconnections.com
Carnivalconnections enables
customer’s to connect to friends,
invite friends and share experiences
of previous cruises and expectations
of future cruises with each other.
Also, the social network provide
customer’s to write reviews about
cruises which they can share with
the public.
Building loyalty of customers
Carnival Cruise Lines’ Rewards Program:
- Free magazine: Carnival Currents”.
- Access to the Carnival Concierge Club.
- Free cocktail reception on every cruise
of five days or longer.
- Personalized stationery.
- A special carnival logo item.
- Guaranteed dining times and supper club
reservations.
- Complimentary $20 entry fee into
blackjack or slots tournament.
- Spa Carnival priority reservations.
- Petit fours and/or canapé delivered to
cabin one evening.
- Complimentary wash and fold laundry
service.
- Priority tender boarding.
- Priority embarkation and debarkation.
- Complimentary arcade tokens valued at
$5 for guests under 18 years of age.
COMMUNITY RELATIONS
• Through its cruise companies, Carnival Corporation & plc supports and
encourages the extraordinary efforts of its employees whose involvement
in a wide variety of programs provide aid, donations and services to a
huge array of charitable organizations
Carnival employees teach children at Miami’s
Renaissance Elementary Charter School about the
various aspects of business and the cruise industry as
part of the Junior Achievement Mentoring Program.
Members of FUN Team clear debris from
Biscayne Bay during the annual Baynanza
Beach Clean Up initiative
Community relations
• From employee fundraisers and hands-on volunteer service initiatives to
cash and cruise donations and innovative philanthropic programs, Carnival
strives to make a difference, both nationally and internationally.
• Over the years, these efforts have made Carnival Corporation & PLC a
stronger company and have created extraordinary pride among its
employees. Carnival Corporation & plc supports the accomplishments of
its employees and will continue its efforts to build better and stronger
communities throughout the world.
CONCLUSION
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Carnival has the unique ability to provide
customers with a wide range of vacation
choices that appeal to any taste, interest,
lifestyle, or budget.
Carnival has implemented new concept of
cruising including some programs that have
met with incredible success

One proposed definition of value is quality
at the right price.

With a theme of "Fun Ships" and low
pricing, Carnival Cruise Lines should seek
a market penetration strategy.
THANK YOU FOR
YOUR ATTENTION