Analysis: External environment
Economic
The economic climate has a strong impact on the cruise line industry. However, the cruise line industry is growing and more people are traveling today then ever before. As welfare of people has considerably grown despite all possible crises in world economy, anyhow many economic factors are influence to cruise line industry, such as clientele's economic positions, growth in markets, currencies rates when working international and inflation plays a role. Operators of a cruise will be affected under management and operational levels. If fuel price begins to increase, then it will influence operational costs of the company. If interest rates increase then, then it will influence the income of the company. Economic factor plays a major role for the company to be afloat of cruise industry.
Social / Cultural / Demographic
Social
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The cruise industry provides an increase of tourism industry within the ports and its country. For example, restaurants, hotels, taxis, theme parks, museums, shops, taxi drivers and travel guides are all positively affected as it will increase local employment within the city and its ports. Anyhow, cruise industry will brings large sums of revenues to the local city and governments. That is why, I think this enhances the relationship with cruise companies and Politicians will be efficient both sides.
Legal
Legal factors are taking one of important segment for the cruise industry. The cruise industry has been strictly monitored for many types of law violations, such as human resource department, the consumer, violations of health and safety. If any cruise company is caught, having broken any of these laws, heavy fines or criminal penalties can follow from it. Legal occurrences can damage the political and government relations. Therefore Legal factors play an important role to the industry of a cruise.
Answer: The threats that exist for the future performance of the cruise –line industry and, specifically, of Carnival Cruise Lines are-
* Travel agencies: Travel agencies have strong relationships with the cruise industry as they book around two thirds of their cruise. Although this percentage is declining due to the growth of consumer knowledge and technology the percentage of cruisers using travel agents is relatively strong. (UCLIA)
There are both positive and negative impacts to cruising on different countries. Some can have a great affect on the ship and the area where the ship docks, others can have a negative affect on the cruise area itself and the people who live in and around the ports of call.
All of these things will greatly decrease the satisfaction of the customers on board, which will result in a major decrease in revenue. If a ship were to crash, like the Costa Concordia did in 2012, that greatly decreases sales of rooms onboard future cruises. It’s a similar result when disease spreads onboard or a ship gets stranded at sea without power. These incidents provide little assurance to potential future customers who are concerned for their safety. Adverse weather is unpredictable, and while it isn’t the cruise lines fault, many will be worried about the weather or get seasickness and never leave the room to buy things on board.
Cruising in the Caribbean has grown rapidly in popularity over recent years, and whilst this is an advantage from a tourism aspect, it has also brought escalated concerns for many territories in this region. According to Nagel, G. (1999) tourism in the Caribbean had increased from 5 million to 10.6 million in the space of ten years. Since this had been found in 1996, this number has now raised to 25 million in the past year. Growing demand for cruise travel means economic development, environmental degeneration, growth in tourism and pollution are now effected more predominantly. This report will investigate all impacts effecting the Caribbean and what could be done to alter those effects that are having a negative impact.
Carnival Cruise Lines is one of the most profited and vacationed cruise line. All over the world, tourists venture this billion-dollar cooperation and have never thought their business strategy to keep them profitable every year. With all the fun it comes, it has a big price tag to operate these liners. But, their current strategy will eventually decline if the cooperation does not implement new ways to keep the company successful.
Another aspect of impact of tourism on a country’s economy is that it facilitates the expansion of the market of goods and services. Foreigners come to a country willing to spend money on different goods and services, thus increasing the amounts of sales. This is a great chance for producers and service providers to receive larger profits. This concerns not only hoteliers, tour operators, and souvenir shops owners. Public transportation, retail stores of different kind, restaurants, and cafes benefit from international tourism. Obviously, if these industries are in demand, businesses will be expanding. On the one hand, it means that more money is paid to the budget. On the other hand, profits generated by the owners are spent inside the country, affecting almost all the fields of the
Carnival Corporation as the largest cruise line in the world is being a leader and innovator in the cruise line industry. Many of the onboard activities and services were introduced to strengthen the competencies between competitors. The challenges of the Carnival were being overcome by the management with creative and innovative strategies. As a corporate entity, Carnival did not refuse to withdraw money to settle the ocean pollution charged by public. The expansions of cruise line market via acquisition of a few subsidiaries dominate the cruise line in the world.
Cruise Line industry is very complex; it is a combination of tourism, passenger carrier and hotel business, and affected by many external events. Thus for the macro-environment analysis DEPEST model was used which had shown that changes in the economic, social, demographic and technological environment are influencing the industry the most. The credit crunch strongly affected the industry. Even though USA remains the main market (62.5% according to the Cruise Market Watch), due to the recession consumers significantly downgraded or cancelled their vacation budgets. However, the opportunity can be found in the economy shift from West to East with the focus on the emerging countries (BRIC). There is a shift in social values and attitudes towards the
Cruise tourism, in todays society, has increasingly become a more popular niche market with in the travel industry for over the past 4 decades world-wide (Wild, G.P. (International) Ltd, 2004, p.15). Although it is a relatively old concept for tourists to travel around the world to different destinations, destinations such as the Caribbean, Asia and the Mediterranean is a relatively new trend including the luxury and innovative experience that is currently provided on-board cruise liners (Pinnock, 2014). Within this essay, a critical analysis will be discussed of who does not benefit from Cruises within and around the Caribbean, including local citizens, domestic and on-board employees of
Critically examine the role that Caribbean cruise tourism is playing in the economies and social sectors of the region. What are the economic and social costs/ benefits derived from this type of industry? What should Caribbean countries be doing to derive more benefits and mitigate social and environmental damage?
Travel and tourism is one of numerous of important component that impact on economic growth and also become foreign revenue for Indonesia. Indonesia as a biggest archipelago country in the world offered several kind of aspect, like natural beauty, historical heritage, and cultural diversity. In context of travel and tourism affecting on economics growth, the data from world travel and tourism council stated that In year 2013 travel and tourism industry of Indonesia was contributed directly 3.1% of GDP or IDR. 281,632 billion and it could be raised 8.1% in 2014 and its expected rise to 5.3% from year 2014 until 2024 (world travel and tourism council; travel and tourism economic impact, 2014; page 1).
Over the past few decades, the tourism industry has grown leaps and bounds in regards to the amount of traveling and recreational opportunities available. Many of these options now include fine dining on airlines, unique lodging options worldwide, and other activities. Although the industry may be evolving, consequently many legal issues arise as a result. These issues become a challenge for travel officials, as they work together to find effective solutions to settle them.
Vacationing is nothing new to many individuals around the world. While many choose to travel to resorts for their vacations, many find excitement embarking on cruise ships for multiple destinations and activities for their vacations. As one of the largest tourism outlets, cruises are constantly changing with new routes and destinations for customers, with bringing as many as 3000 on board passengers (Cite MANAGING CRUISE SHIPS). Cruise ships allow passengers a wide variety of activities and leisure during their stay aboard and while docked. With the boats stopping at numerous destinations in one week, each visit has pros and cons to the general areas being visited. This paper will focus on the cons that occur from the widely populated ships visiting ports in the Bahamas. More so, the problem being that these cruise ships are bringing thousands of visitors weekly, yet are failing to support port destinations economically which leaves the port locals and entrepreneurs suffering. Specifically this paper will look into the cause of the issue, which is mostly the cruise ships and management teams of the cruise companies. Further, this paper will explore the solution to how these cruise companies can better support the port communities and aiding to the local environment. More so, having the ships promote and advertise local recreational activities could be a possible solution. As well, what the local entrepreneurs could be doing to appeal more directly to the
Though this special article, one of the major emerging themes in Sri Lanka as well as the globe is addressed since almost all the countries keep their eye on tourism industry. Through this article, the focus is given to the changes applicable to the tourism business in Sri Lanka due to world economic changes and the institutional decisions. This adds benefits to the publisher in various ways. Discussion of the prevailing issues will attract more readers. Tourism is one of the major emerging themes, as discussions and