Carnival Cruise LinesDursun POLAT Ali DOGAN Recep MAZFaruk ALKAN
Carnival Cruises Company Overview Carnival Cruise Lines is a British- American owned cruise line. Founded by Ted Arison in 1972 and headquartered in Miami. Carnival Cruises is one of the worlds most innovative cruise lines The company has the largest fleet in the group 1975 Began turning profits and operating above 100% capacity. 1980’s maintained growth rate of ~30% 1987 Arison sold 20% of his shares in CCL and generated over $400 million for expansion.
History cont. Today, (22) ships 100% owned by Carnival World’s largest multiple-night cruise company based on: number of passengers revenues generated available capacity Carnival Cruise Lines is a member of the exclusive Worlds Leading Cruise 1991 Carnival attempted to purchase Premier Cruse Lines but it was never consummated also took on its 3rd superliner known as the Sensation, later in the year they contracted the fourth superliner which was to be named the Fascination 1993-1995 addition of the Imagination for CCL, and the Ryndam for Holland America Lines 1997 attempted to buy Celebrity Cruise Lines for $525 million, but was overtaken by the inside ties of Royal Caribbean to Celebrity. June of 1997 CCL purchased an Italian cruise company by the name of Costa for $141 million.
Largest Vacation Company in the world Publicly traded since 1987 on both the NYSE and the London Stock exchange Carnival is the only company in the world to be included in both the S&P 500 Index in the United States and the FTSE 100 Index in the United Kingdom. Headquartered in Miami, Florida, U.S.A. and London, England 75,000 employees worldwide. Operates a fleet of 81 ships, and another 20 vessels scheduled for delivery by 2011. With approximately 144,000 guests and 60,000 crew members, there are over 200,000 people at sea with Carnival at any given time.
Customer Profiles Carnival Industry CruiseAverage age was 46 years Average age was 50 yearswith wide age differenceHousehold Income was about Household Income was about $ 99,000$ 65,000Carried fewer marriedpassenger (55%) 78% customers were marriedPopular with people of all agegroup Popular with old and affluentHalf of the guests were firsttimer One third guests were first timer
Cruise Pricing Cruise price includes: all meals and entertainment; casino; nightclubs; theatricalshows; movies; parties; a discotheque; health club; and swimming pools Cruises generally substantially booked several months in advance Other revenues: • casino • liquor and gift shop sales • shore tours • photography • spa services • promotional advertising by port of call merchants • pre- and post-cruise land packages
Mission Statement Carnival has the unique ability to provide customers with a wide range of vacation choices that appeal to any taste, interest, lifestyle, or budget. With a mission to surpass customer expectations, Carnival offers leisure travelers vacation experiences equal or superior to those at the worlds most popular travel destinations. Carnival wants to remain the leader and innovator in the cruise industry and intends to do this with sophisticated promotional efforts and to gain loyalty from former cruisers by refurbishing ships, varying activities and ports of call, and being innovative in all aspects of ship operations.
Vision Statement “To consistently provide quality cruise vacations that exceed the expectation of our guests”
SWOT AnalysisStrengths Global Presence Brand Equity Strong Consumer Demand in Europe In 2006, all operating companies achieved ISO 14001 Standards Diverse Staff Tons of entertainment aboard all fun ships
Weaknesses Hurricanes and Other Bad Weather Rising Cost of Fuel Less disposable income available Shifts in Currency Exchange Rates
Opportunities Expand Luxury Liners Offer more destinations Expand presence in China Expanding into Alaskan rail road market & Motor Coach market for sightseeing and tourism
Threats Competition: Royal Caribbean Cruise Lines Star Cruise Lines Less patronage on cruise ships due to unpredictable hurricane seasons
Marketing Strategy They promote the cruise as an alternative to land based vacations The ship is an experience by itself They use ports of call as an added bonus to the cruise experience In 2010 their marketing campaign: "A Million Ways to have Fun!"
Industry Competitors Major Competitors: Other Competitors: Celebrity Cruises American Hawaii Cruises Norwegian Cruise Lines Club Med Star Cruise Lines Commodore Cruise Line Princess Cruises Cunard Line Royal Caribbean Cruise Dolphin Cruise Line Lines Radisson Seven Seas Cruises Royal Olympic Cruises Royal Cruise Line
Recommendations•• Increase the direct consumer contact points• Developing the loyalty programs without comparing with industry needs• Special and adequate follow up by all centre executives for the past guests• Building up the IT infrastructure to improve and own consumer database
Recommendations• Developing a process to record the feedback of consumers and working upon it• Concentrate on developing repeat customers by building a state-of-the-art customer relationship management (CRM) system and by offering its current customers incentives to refer friends and family members• Enriching the website• Building relationships with consumers – greetings on occasions (birthdays, anniversaries etc) – special rebates for new offerings
Sources “Annual Report.” (2009). Carnival Corporation & plc. (2,3,33). Carnival Scrubs Ship After Virus Sickens Nearly 700 Passengers. Wall Street Journal. (Eastern Edition). New York, N.Y. November 20, 2006. Passengers Injured When Cruise Ship Rolls Sharply at Sea. Wall Street Journal. (Eastern Edition). New York, N.Y. July 19, 2006. Carnival: CCL Stock Quotes. (2011) Morningstar.com. http://quote.morningstar.com/Quote/Quote.aspx?ticker=CCL Royal Caribbean Cruise Ltd. (2011) Morningstar.com. http://finance.yahoo.com/q?s=RCL “Cruise Lines Hit High Water Mark with Record Sales.” (2007) Courier.org. http://www.courier.org/corgcms/content/view/141/2/ Melvin R. Mattson. Marketing Management: Case Analysis by Teams. McGraw-Hill Companies, Inc. (2009). Pgs. 196-212. Carnival Cruise Lines Official Website: www.carnival.com