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A case study of the Cruise
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styles
and its evolution
Second level
over
the
decades.
• Third level
Fourth level
Fifth level
Members
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Second level
• Third level
Fourth level
Benny
Sonny
Christina
M987Z219 Fifth level
M987Z261
M987Z237
Rachel
Febby
Nadia
M987Z226
M987Z248
M987Z250
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Contents
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• History of the Cruise Industry
Second level
• Third level
• Growth phase
Fourth level
• Industry SWOT
Fifth level
• Conclusion
• Q&A
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History of Cruise Ships
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Increasing
air travel
and the first nonstoplevel
flight to Europe in 1958 marked the
Second
• Third
level of transatlantic business for
ending
Fourth level
ocean
liners.
Fifth level
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History
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Second
level
The
real blow to the cruise ship
• Third level
industry came in the 1960’s
began selling 747s and
other aircraft worldwide. Meanwhile,
a global transportation network of
airports was being established => The
age of the jumbo jet had arrived.
Fourth level
Fifth level
when
Boeing
SHIP
Click toCRUISE
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 A cruise ship or cruise liner is a passenger ship used for
pleasuretovoyages,
where the
Click
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textvoyage
stylesitself and the ship's
amenities are part of the experience. Cruising has
Second
levelpart of the tourism industry, with
become
a major
• Third
level
millions
of passengers
each year.
Fourth level
Fifth level
 The industry's rapid growth mainly focused in North
American, European and smaller markets such as the
Asia-Pacific region.
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POINT
As the decade came to a close, it
was no longer fashionable,
practical, or economical to travel
by boat.
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Second level
• Third level
Fourth level
The 1960s witnessed
the
Fifth
level
beginnings of the
modern
cruise industry. Cruise ship
companies concentrated on
vacation trips in the
Caribbean, and created a
“fun ship” image which
attracted many passengers
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History of Cruise Ships
Click to
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stylesvacation was
Foredit
many
years,text
a cruise
stereotyped
as a big boat full of boring
Second
level
• Third
level
old people…
Fourth level
Fifth level
Customers
want
a more
intimate
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titleexperience
style
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The new cruise line image was
Second
level
solidified
with the
popularity of
the TV series
• Third“The
levelLove Boat”
which ran from 1977 until 1986
Fourth level
=> Contributed to the idea a
levelship travel
growing trend of Fifth
cruise
as a luxury vacation rather than a
means to travel as a necessity.
Many people also want to spend
their vacations experiencing
foreign cultures or learning new
hobbies and more intimate
experience.
Customers
want
a more
intimate
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titleexperience
style
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The new cruise line image was
Second
level
solidified
with the
popularity of
the TV series
• Third“The
levelLove Boat”
which ran from 1977 until 1986
Fourth level
=> Contributed to the idea a
levelship travel
growing trend of Fifth
cruise
as a luxury vacation rather than a
means to travel as a necessity.
Many people also want to spend
their vacations experiencing
foreign cultures or learning new
hobbies and more intimate
experience.
New Cruise Line Industry
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Developments
Bigger ship with more amenities, features to attractive the customers:
Restaurants
 Sports
complex
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styles  Center training
 Ceremonies  Swimming pools
 Broadway theater
Second
level
 Nightclubs
 TV studio, casino
 Shopping centers
• Third level
 Museum
 Onboard wedding
 Meeting Rooms
Fourth level
This fact has created a growing market for smaller cruise lines that
Fifth level
operate everything from 200-passenger cruise ships to yachts and
sailboats that carry only 10 to 30 travelers at a time.
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a Modern Cruise Ship
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text styles
Pool Master
Area
Second
Restaurants
level
• Third level
Fourth level
Fifth level
Staterooms
Casino & Shops
Theater
Cruise
Industry
Developments
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Perceptionto
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1980s, as atext
resultstyles
global cruise industry
average an 8.5 percent annual growth in booking at 1990s.
Second level
Third
Also low• tax
andlevel
operating cost if they register their ship in
Panama andFourth
Liberia.
level
Fifth level
Cruising become most profitable service business during that
decade.
Due to concerns about terrorism, high energy cost, increased
pollution of harbors, and the like, industry growth slowed a bit
after 2002.
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Threetolargest
cruise title
operators
Corporation:
as styles
"The World’s
Click toCarnival
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Most Popular
Cruise Line“ in 1987 . In April 2003, Carnival Corporation
combined
with P&O Princess Cruises plc, creating the
Second
level
world’s first global cruise operator , one of the largest
leisure
travel companies in the world.
• Third
level
Royal level
Caribbean International: One of the biggest recent
Fourth
mergers was the purchase of Celebrity Cruises by Royal
Fifth level
Caribbean
on 30 July 1997, which has resulted in the
creation of one of the largest cruise companies in the
world.
Star /Norwegian Cruise Lines: Once known as NCL’s
Dreamward , big difference between NCL and other cruise
lines is Freestyle Cruising “guests can do everything, or
nothing at all”, operates a growing fleet sailing to more
than 140 ports around the world.
SWOTtitle
Analysis
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Strengths
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styles
AND
BETTER
SHIPS
Queenlevel
Mary 2 (transatlantic ocean liner)
Second
(Cunard Line)
• Third level
Carnival Destiny (first cruise ship to be built
levelgrt) (Carnival Cruise Lines)
overFourth
100,000
Fifth levelGrand-class Cruise ship, with the
Star Princess
capacity of 2,600 passengers (Princess Cruises)
Caribbean Princess (first cruise ship to have an
outdoor movie theater) (Princess Cruises)
Ventura (Britain’s largest cruise ship) (P&O
Cruises)
Strengths
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MORE OPTIONS AND CHOICES
Second level
 Six cruising experiences serving the North American
• Third
market,
each level
with its own unique style and ambiance – the
contemporary
Fourthsparkle
level of Carnival Cruise Lines; the Italian
charm of Costa Cruises; the classic British tradition of Cunard
Fifth sophistication
level
Line; the five-star
of Holland America Line; the
complete escape of Princess Cruises; and the indulgent
intimacy of the Yachts of Seabourn.
 Carnival UK who operate four of the world's leading cruise
lines: P&O Cruises, Cunard, Princess Cruises and Ocean Village
Holidays…along with sister companies of Carnival, Costa,
Holland America Line and the Yachts of Seabourn.
Strengths
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styles crews.
 Better
amenities
andtext
professional
Second level
Carnival corporation & plc is a global
• Third
level with over 80,000 employees
company
Fourth
level more than 65,000 shipboard
including
Fifth level The company is headquartered
employees.
in Miami, Florida and London, England.
Our cruise brands also have headquarters
in the USA in Miami, Seattle, Washington
and Santa Clarita, California, as well as in
Southampton, England; Genoa, Italy;
Rostock, Germany; and Sydney, Australia.
Weaknesses
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 Overcapacity
With 7 different cruise brands, offering different vacation products. Carnival Corp.
Second
level
has 92 cruise ships
to provide its operations worldwide. With 13 new ships on
order, scheduled for delivery between now and 2012.
• Third level
 Increased competition
Fourth level
Royal Carribean Cruises Ltd. (Miami, Florida)
Fifth level
Star Cruises (Kowloon, Hongkong)
TUI (Hannover, Germany)
 Declining demand
The demand of Cruises has fell last year, because of economic recession and the
issue of swine flu.
 Passenger Safety
Passengers are subjected to outbreaks of illness while onboard and occasionally
fall overboard to their death. On Caribbean cruises, 87 people have fallen
overboard since 2000.
Opportunities
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 Newlevel
cruise destinations
Second
• Third level
Asia,
Canada/New
England,
the
Fourth level
Indian
Ocean and Africa, the
Fifth level
Amazon
and Brazil, the Middle
East and the Arctic regions,
including Newfoundland and
Greenland
Opportunities
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The map below indicates where cruise ships are
operating on Oct 11, 2009. Where there are no dots,
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there is opportunity!
Second level
• Third level
Fourth level
Fifth level
Opportunities
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More specific customer segments
Second
levelspecific demographic groups with a
Targeting
variety of entertainment options
• Third level
Fourth levelKid & family friendly cruises
Example:
Fifth level
Opportunities
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Emerging ports around the world
Second
Dubai,level
Abu Dhabi and Bahrain (the
• Third level
Arabian
Gulf); Mumbai (India) etc.
Fourth level
Fifth level
Opportunities
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 Shipboard Innovations
Second level
• Third level
Casinos,
full-scale seagoing aqua parks,
Fourth level
luxury spas,
skating rinks
Fifth level
Opportunities
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Co-Branding
Opportunities
Second level
Disney Cruises is a good example of a successful
• Third level
co-branded
cruise experience. Disney was so
successful;
they ended their partnership with
Fourth level
Premier Fifth
Cruises
leveland purchased their own ships.
Fitness Co-Brand Marketing
Example: Canyon Ranch Spa & Regent Seven
Seas Cruises
Threats
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Terrorism
Cruise
ships present a target for terrorist
Second
level
organizations. A famous hijacking took
• Third
placelevel
in 1985 onboard the Achille Lauro in the
Mediterranean
Sea.
Fourth level
Fifth level
 World Political Unrest
Political unrest led to decreased industry
revenue in 2002. (example: Somalia)
 High Energy Costs
Increased energy costs lead to reduced
profit margins
Threats
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Over Capacity
With rapid growth, there may now be too many ships for companies to
remain profitable. Over capacity can restrain growth and create barriers to
entry for new competition.
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Second level
 Economic Recession
level slowdown, fewer people have the disposable income
With•a Third
global economic
for a leisure
cruise.
Fourth
level
Fifth level
 Environmental Impact
Cruise ships have a history of polluting the water they operate in. As
environmental laws become more strict, this will create new costs and
restrictions for cruise ship operators.
 Tax Challenges
Cruise ships have been registered in many countries with weaker tax
requirements; i.e. Liberia, Panama, and The Netherlands. Countries
experiencing a reduction in tax revenue could move to add tariffs to cruise
fares.
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Conclusions
 Creating
termtext
relationships
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styles with past
customers in the hopes of generating more
Second level
repeat business (offers substantial discounts
• Third level
to past
customers)
Fourth level
Fifth level
 Because Cruise Ships create a lot of waste,
the industry should emphasize on the
growing environmental trend, and provide a
better waste management.
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Conclusions
 The
is totext
increase
growth in
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passenger bookings so to recoup the
Second level
investments made in the new bigger ships.
• Third level
 Getting
the opportunity of increasing
Fourth level
market value,
Cruise Ships should create
Fifth level
cheaper tickets to customers
(Giving promotional benefits or discounts)
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Recommendations
Keys to Success
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 Giving more promotional programs
Second to
level
customers.
• Third level
 Improving the physical facilities on
Fourth level
older ships.
Fifth level
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Questions We Discovered
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 With the size of Carnival Corp. and Royal
Second
level is there room for any competition?
Caribbean,
• Third level
Fourth
CNBC
level
reports: “…the two largest companies, Carnival
Corp.
and Royal Caribbean International, are already
Fifth level
so big they both face anti-trust issues, especially in
Europe. The Carnival takeover of Princess only won
the European Union's final approval after they agreed
to make it one of the world's first dual listed
companies, on the New York Stock Exchange and the
London exchange…”
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Questions We Discovered
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textand
styles
many
passengers
crew have been lost
overboard
Second
levelin the last 10 years?
Approximately 120 according to the Cruise
• Third level
FourthLines
levelInternational Association
Fifth level
Questions
We Discovered
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 Why do cruise vacations have a higher percentage of
satisfied
than any other
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text vacation
styles experience?
•Value: Your ticket price covers accommodations, dining, entertainment, and more. In general, this price is
20-40% below what you would pay for a land-based vacation of comparable quality.
•Simplicity: Don't come back from your vacation needing a vacation. Pack and unpack once. Skip the rental
car. Effortlessly select among nice restaurants and activities knowing that all the details are taken care of.
•Activities: Fill your days with sightseeing, sports activities, cultural lectures, educational tours led by
Fourth level
naturalists and historians or simply lounge by the pool and relax. At night, enjoy dance extravaganzas,
musical revues, gaming or Fifth
a quiet level
evening gazing at the stars.
•New Horizons: With over 1,800 ports of call and an amazing array of places to see and things to do, there is
a perfect cruise for you. A cruise is an ideal way to see Alaska, where a ship allows you to a perfect vantage
point to see mighty glaciers and pods of whales.
•Family Fun: Families love cruising. Youth programs, kid-friendly menus and a safe ship to explore will keep
your children happy. Meanwhile, adults can have some well-deserved time alone.
•Pampering: Regardless of your budget, all cruise lines pamper their guests with a very high level of service.
From complimentary room service 24/7 to decadent spas, cruises are a wonderful place to be treated like
royalty
•Cuisine: Tantalize your taste buds with gourmet fare that showcases exotic ingredients, old standbys like
pizza and ice cream or spa cuisine for a healthy alternative.
Second level
• Third level
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Q&A
Second level
• Third level
Fourth level
Fifth level