Slide 1II. Savvy Marketing helped fuel industry growth
        a.) Factors that helped change consumer perceptions
        b.) Ability of major competitors to understand market
III. Types of Cruises, Benefits & Major competitors
      
dull and sedate
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introduction
2005, Carnival Corp. was the market share leader and parent of several lines:
$2.3B net income
$11.1 sales revenue
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Terrorism
6M+ customers
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Exceptional Value Proposition
Relatively Low Market Penetration Levels
About 20% of the U.S. population has ever taken a cruise, 9 to 10% in the UK and 4 to 5% in Europe.
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Wide Appeal
127 million potential cruise guests in North America. More than half of these individuals have expressed an interest in taking a cruise as a vacation alternative
Positive Guest Demographics
Between 2005 and 2015, the number of people in the cruise industry's primary age group of 45 years and older are expected to grow by 24 million, or 20%, in the U.S. and Canada, and 20 million, or 15%, in the major Western European countries
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High Guest Satisfaction Rates
North American cruise guests have a total satisfaction rate of 95%, including nearly 45% of cruise guests stating that they are extremely satisfied with the experience, which is defined in the surveys as the highest satisfaction rating of any vacation alternative they have experienced.
Significant Growth Potential
The number of new cruise ships currently on order from shipyards indicates that cruise capacity is set to grow by 23% through 2012
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Passengers
thous.
Goal: to appeal wider variety of customer segments
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Shorter and cheaper cruises
More money spent on advertising and promotion programs
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Understand the market:
Understand, that wants and needs of customers are different in various age or social groups
Focus on special interests, ideals and hobbies to fulfill their desires gain new customers
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Offer special comforts, bigger suites,…
Serve special food and beverages – create new tastes and be creative to offer customers unknown things
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Offer special activities related to the target group: sports, music, relaxing, SPA, ……
tailor all these things to the target group (demographic, social, lifestyle, age,….)
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younger couples
Sports and educational activities like: scuba diving, gourmet cooking, wine tasting
“Romantic cruises”: honeymooners
multiroom suites
supervised activities children are not bored and parents can enjoy holidays ….
Traditional target group cruises:
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Carnival Cruise line
Carnival Cruise Lines is the largest and most popular cruise line in the world
Each Carnival vessel features at least three swimming pools, a full gambling casino, on-board duty free shopping, as well as a "Nautica Spa" health and fitness facility, and "Camp Carnival"
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Royal Caribbean
Royal Caribbean cruise ship is like a recreation center, a grand hotel, an art gallery, several restaurants a seaside resort... all rolled into one
Where else can you experience gourmet dining, enjoy first class entertainment, be pampered in spacious accommodations - all under one-roof
cruises
Norwegian Cruise Line
With Norwegian Cruise Line, Freestyle Cruising is all about flexibility and freedom. Freedom from stress. Freedom from schedules. Freedom to create your own vacation. On an NCL cruise, you can eat where you want, when you want, with whom you want. And with up to 13 different restaurants and dining rooms on board.
On NCL, you're always free to whatever:
+ Freestyle Accommodations
+ Freestyle Dining
+ Freestyle Fun
Holland America
Holland America Cruise Line offers a diverse range of activities that are consistent across their ships: fitness workouts, art tours and wine tastings, for example. In addition, tea is served each afternoon. Evening entertainment includes many options, such as dancing, movies and Las Vegas-style revues.
cruises
P&O Princess
Princess has raised cruising to a whole new level, with spacious and accommodating ships packed with amenities. With two to three main dining rooms, warm and intimate in scale, and two to three spectacular theatres for a choice of entertainment nightly
cruises
cruises
Value-oriented cruise of 3-7 days; casual environment, deck, pool space; activities, sports;  sit-down and buffet-style meals.
Carnival. Royal Caribbean, Norwegian Cruise Line
Premium
$250-$600
Semiformal, premium-quality Cruises of 7 days cruises;  more space and service; theme lounges, theaters, cigar bars; activities, games, fitness facilities; premium food and beverage offerings.
Holland America, P&O Princess.
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Amenities/Benefits: Cruises emphasize greater choice of food, beverages, and entertainment options in a more formal atmosphere; more spacious and luxurious accommodations; more exotic itineraries
cruises
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Founded in 1840 as the British and North American Royal Mail Steam Packet Company before gradually adapted itself to become one of the world’s largest passenger lines and had provided year-round service until 1968 before changing itself to concentrate on cruising and summer transatlantic voyages for vacationers
Cunard - British-American owned cruise lines
cruises
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Wholly owned by Nippon Yusen Kaisha (NYK), the largest shipping company in the world
Luxurious cruise ship line founded in 1988 and notable for its 2 medium-sized, high-end ships
cruises
cruises
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A luxury cruise line that operates four luxury, all-suite cruise ships that sail itineraries all around the world throughout the year.
Silversea provides its guests an option called Personalised Voyages, a cruise industry first. This program allows guests to choose their own embarkation and disembarkation ports, essentially allowing them to create their own voyages.
cruises
The company refers to itself as The Yachts of Seabourn.
Seabourn specialises in small yachts, small enough to fit in many exotic ports around the world that large cruise ships can't reach.
Seabourn Cruise Line is an ultra luxury cruise line operates all around the world, from short seven day Caribbean cruises to exotic 100+ day cruises. It is owned by Carnival Corporation, part of the "World's Leading Cruise Lines" marketing group, Passengers typically range in ages from the 40s to the 60s, but children are still welcome.
cruises
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Each cruise itinerary is a unique, cultural travel experience, blending world-class sites with smaller, off the beaten track destinations. It also invites distinguished guest lecturers to travel along the trips as to deliver lectures in accordance with the destinations.
A British cruise line specialising in tours of historical or cultural interest aimed at the upper end of the cruise market.
cruises
terrorist attacks and political unrest around the world disrupted industry revenues in 2002 and may to do so in the future.
high energy cost may squeeze industry profits
future challenges
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One of the industry’s biggest potential challenges is over-capacity
The substantial growth and profits cruise lines enjoyed during 1990´s spurred them build more bigger ships at an increasing rate
future challenges
The primary challenge is:
to increase the growth in passengers booking to fill the growing capacity and recoup the huge investment in new ships.
One way to do this:
Is to develop long-term relationships with past customers in the hopes of generating more repeat business
future challenges
future challenges
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Given that the vast majority of vacationers around the world have never gone on a cruise , however, the greatest potential for growth involves converting nonusers into new customers
But attracting new customers will require an even better UNDERSTANDING OF WHAT THOSE PEOPLE WANT from a vacation and how they make their leisure purchase decisions.
future challenges
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1.) Should the cruise vacation industry switch to younger generation customers or concentrate on older customers segment?
discussion points
discussion points
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Population is getting older. Older people tend to have more money than youngsters and are more willing to spend their vacation in comfort and luxury.
Should certainly invent special cruises for younger groups of people with plenty of entertainment and sport facilities, but this should be rather exception than a rule, i.g. a short school trip, seminars, bachelor party etc.
discussion points
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2.) According to surveys, the rate of people booking trips for holidays shrinks…
What are the reasons for that and how can companies offering ship cruises hold their level of customers?
discussion points
Financial crisis people are afraid of spending money
Economy slows down salaries shrink, or don’t rise at the same level as inflation
Fear of terror attacks people stay in their own countries not to risk their lives
Fear of diseases like H1N1
discussion points
Cheaper cruises
More service
Higher quality standards
More money for marketing, research and development to be able to totally fulfill customers needs
discussion points
E able
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3.) With the worldwide economy fluctuating and prices of goods and services going up, should cruise lines follow suit and bring the prices of luxury and high-end vacation packages down ?
discussion points
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Cruise lines should retain prices of luxury and high end vacation packages. They may opt to cut costs without sacrificing the quality of their product to keep up with the times. This is because luxury and high end packages cater to a certain market niche – those who are not price sensitive and are willing to spend for such luxury.
discussion points