Carnival Cruise Line Case
Case : Carnival Cruise Lines
1 )The cruise line industry has seriously developed through the last decades. Companies have adapted offers creating lower price cruises more adapted to the middle class. Moreover, Ted Arison has launched the concept of “Fun Ship” vacation creating a new type of cruise more oriented on leisure. He managed to create a synergy with group tours, theme parks and sojourns (to Las Vegas for example). It created curiosity to potential customers and has grown the number of first time passengers.
It is also important to highlight that the economic context has been positive to cruise line considering that people prefer going on cruises starting from close ports rather than flying to far away destinations. It has managed to counter health problems such as epidemics, or political problems such as countries with a high crime rate.
2) At the time when cruises became affordable to a larger number of people and trend headed to go on tours and theme parks, carnival created "fun ship" vacation which were less formal and luxurious.
They also adapted the theme and cost of the cruise to the geographical area to be attractive to a broader range of customers.
3) Not so many cruise-line companies are international. Carnival is one of the rare one to deal with several countries.
We understand the little number of international cruise-line companies because a lot of national differences affect their operation.
On the one hand we find law, security, taxes reasons. What is the age of the majority onboard? In which country does the company has to pay his taxes? Which country take care of their security? And so on.
On the other hand, facility reasons. Where to buy the oil, the food,..? From which country the company hire employee? Are the dockside the same for every countries?
All of these national reasons affect the operation of cruise-line and explain that only few cruise-line companies are international.
4) Cruise lines face problems in the US
1 )The cruise line industry has seriously developed through the last decades. Companies have adapted offers creating lower price cruises more adapted to the middle class. Moreover, Ted Arison has launched the concept of “Fun Ship” vacation creating a new type of cruise more oriented on leisure. He managed to create a synergy with group tours, theme parks and sojourns (to Las Vegas for example). It created curiosity to potential customers and has grown the number of first time passengers.
It is also important to highlight that the economic context has been positive to cruise line considering that people prefer going on cruises starting from close ports rather than flying to far away destinations. It has managed to counter health problems such as epidemics, or political problems such as countries with a high crime rate.
2) At the time when cruises became affordable to a larger number of people and trend headed to go on tours and theme parks, carnival created "fun ship" vacation which were less formal and luxurious.
They also adapted the theme and cost of the cruise to the geographical area to be attractive to a broader range of customers.
3) Not so many cruise-line companies are international. Carnival is one of the rare one to deal with several countries.
We understand the little number of international cruise-line companies because a lot of national differences affect their operation.
On the one hand we find law, security, taxes reasons. What is the age of the majority onboard? In which country does the company has to pay his taxes? Which country take care of their security? And so on.
On the other hand, facility reasons. Where to buy the oil, the food,..? From which country the company hire employee? Are the dockside the same for every countries?
All of these national reasons affect the operation of cruise-line and explain that only few cruise-line companies are international.
4) Cruise lines face problems in the US