How Carnival Cruise Lines Can Become More Like Royal Caribbean
Service Marketing
Intro-
For our project, we chose to analyze the service provided amongst different companies in the cruise industry. Needless to say, every industry contains many separate companies with varying business models and different core values which help differentiate their company from the next. In the cruise industry, as we discovered through our research and through the JD Power Ratings, we found that Royal Caribbean and Carnival Cruise Lines were perfect examples of such differing companies. It should be noted that we decided to primarily focus specifically on the flagship cruise line, not the entire corporation, as different cruise lines within the corporation are not only of different qualities and target different audiences, but they have nowhere near the market share that Carnival and Royal Caribbean cruise lines do (i.e. Celebrity Cruise Lines, a sister of Royal Caribbean, will not be included in the comparison with Carnival). Upon initial review, one may think Carnival Cruise Lines would obviously provide better service as it possesses 21.2% of worldwide market share compared to Royal Caribbean’s 16.4%. However, as our research and JD Power Ratings showed, Royal Caribbean Cruise Lines is considered superior in every aspect of service quality. How is this possible? How and why is Royal Caribbean Cruise Lines superior in quality to Carnival? What can Carnival Cruise Lines do to catch up to Royal Caribbean in service quality? These are questions we will address throughout the entirety of our presentation. First, however, we must analyze the industry as a whole to get a better understanding of the situation at hand.
The cruise line industry is, without a doubt, one of the most popular and prosperous tourist industries in America today. According to the American Association of Port Authorities (AAPA) and the Florida-Caribbean