Cruiseline Industry Research
Case assignment: “The real world of business models”
Cruise line industry
Carnival Cruise Lines
Royal Caribbean Cruises
Princess Cruises
I. History
With the development of the global transportation network, world becomes more and more smaller. Not only does the airline industry become popular, but also the cruise industry is given more attention. Comparing with airline industry, cruise line can bring a lot of fun, such as a disco, casino, movie theater, and nightclubs. The most interesting thing is to have a wedding party which is unique and unforgettable. Instead of a long and boring trip, cruise industry can offer a perfect one with full of fun. Nowadays, there are a lot cruise companies around the world and Carnival Corporation, Princess Cruises and Royal Caribbean International are the most famous. Next the development of those companies will be discussed in order to find how they are operated and what kinds of changes they are done.
1. The development of Carnival Corporation
Carnival Corporation is the first cruise operator in the world, boasting about dozen cruise lines and about 100 ships with a total passenger capacity of more than 190,000. This company was founded in 1972 by Ted Arison and his former schoolmate Meshulam Riklis. At the time, the first ship of Carnival purchased was Mardi Gras( previous name Empress of Canada). Although its future voyage went better and better, Arison had to think about cutting the cost of each run, like reducing fuel consumption by reducing the speed and the frequency of stops it made as a result of the company’s debt which was more than 5 million dollars. If this was true, the passenger would have to spend more time on the trip, so Arison added other value-added services entertainment feature, including nightclubs, disco and so on. In fact this was a revolution for the whole cruise industry to make the trip fun. Accordingly, Mardi Gras was called “Fun ship”. This was the part of early development
Cruise line industry
Carnival Cruise Lines
Royal Caribbean Cruises
Princess Cruises
I. History
With the development of the global transportation network, world becomes more and more smaller. Not only does the airline industry become popular, but also the cruise industry is given more attention. Comparing with airline industry, cruise line can bring a lot of fun, such as a disco, casino, movie theater, and nightclubs. The most interesting thing is to have a wedding party which is unique and unforgettable. Instead of a long and boring trip, cruise industry can offer a perfect one with full of fun. Nowadays, there are a lot cruise companies around the world and Carnival Corporation, Princess Cruises and Royal Caribbean International are the most famous. Next the development of those companies will be discussed in order to find how they are operated and what kinds of changes they are done.
1. The development of Carnival Corporation
Carnival Corporation is the first cruise operator in the world, boasting about dozen cruise lines and about 100 ships with a total passenger capacity of more than 190,000. This company was founded in 1972 by Ted Arison and his former schoolmate Meshulam Riklis. At the time, the first ship of Carnival purchased was Mardi Gras( previous name Empress of Canada). Although its future voyage went better and better, Arison had to think about cutting the cost of each run, like reducing fuel consumption by reducing the speed and the frequency of stops it made as a result of the company’s debt which was more than 5 million dollars. If this was true, the passenger would have to spend more time on the trip, so Arison added other value-added services entertainment feature, including nightclubs, disco and so on. In fact this was a revolution for the whole cruise industry to make the trip fun. Accordingly, Mardi Gras was called “Fun ship”. This was the part of early development
References: Cruise Industry Overview and Statistics, 2010 (http://www.f-cca.com/downloads/2010-overview-book_Cruise-Industry-Overview-and-Statistics.pdf) Customeraffairs.com: Royal Caribbean Cruise Lines