Oasis of the Seas

Carnival is “The World’s Most Popular Cruise Line” with 24 “Fun Ships” operating voyages ranging from three to 16 days in length to the Bahamas, Caribbean, Mexican Riviera, Alaska, Hawaii, Canada, New England, Europe, and Bermuda. Carnival’s success is attributed to its marketing program directed towards

A few international differences affect the operations of cruise lines. Differences include political/legal, geographic, economic, or sociocultural. Since cruise lines are an international business, they are affected by these differences. Many cruise lines choose to flag their vessels in countries that have “lower taxes and less stringent employment practices required by the laws of those countries” (The Cruise). However, some governments may choose to subsidize the ship industry in order to secure contracts for their domestic firms. Many ships are built in order to be appealing to the eye, but with cruise ships going to so many different places, they have to be designed not only to accommodate the economic reality of the mass market, but also the cultural preferences of the clientele.

In summary, the low price sensitivity, low buyer concentration and the leadership of Carnival in the cruise industry on one hand enhances the buyer power while a high degree of involvement of travel agency on the other reduces their bargaining power, the power of buyer of the buyers in the cruise line market of Carnival is moderate.

* Psychographic - JS provides two variations of cabin classes (Star Class and Economy) to meet the different needs and wants of consumers. The strategies of JS have attracted a market that have a simple need to reach their destination at the cheapest rates.

* Distinctiveness of cruise experience: Cruising is perceived as a more expensive vacation alternative compared to land-based trips, however there is a strong belief among consumers that cruising offers high value for the price consumers pay. Cruising is looked at a full package by offering bundles of travel packages including airfare, dining, itineraries, resort stay, and multiple other amenities. Therefore, a cruise offers a distinctive type of experience that most consumers would choose over various other traveling substitutes. (UCLIA)

Cruise lines have been classified into three separate entities, luxury, premium, and contemporary. The three classification allow for choices on what kind of

Summary: The cruise line industry has been experiencing a period of massive expansion over the last decade thus heightening the competitive profile for the industry in terms of market share and competitive rivalry. Now cruise industry is one of the most competitive across all.

This report will identify the cruise marketing strategies of Carnival Cruise Lines and Thomson TUI in the UK. The report will be comparing each company to the other and how well each company is performing throughout the years gone by. Assessment of their positioning and pricing policies also will be acknowledged. It will also review the effectiveness of their promotion and advertisement campaigns.

In 1972, Carnival Cruise Lines (CCL) was found by entrepreneur Ted Arison. Mr. Arison’s vision involved making cruising, a vacation experience once reserved for the rich, available to the all individuals. Carinal Cruise Lines achieved the ability to carry more passengers than any other cruise line, which lead to Carnival becoming the largest cruise line in the world. By 1987, Carnival Cruise Lines earned the distinction, “The Most Popular Cruise Line in the World.”

Product differentiation is one of the main strategies in order to face some of the risks; however, Royal Caribbean, as well as, Carnival Corporation and Norwegian Cruises are the most visible players in this industry. It is not easy to differentiate with their huge size, economies of scale. The industry is very lucrative, has high profit margins; hence, the level of risk is extremely high as well.

Despite Cabo San Viejo’s (CSV) start in the late 1970s as a “fat farm,” catering primarily to women, the resort is now operating in a more niche and exclusive market, providing for guests who are largely affluent with high expectations for the service. In terms of pure demographics, the business welcomes 3,500 new guests each year. Between new and repeat customers, 70% to 80% are female. In the high seasons of winter, spring and fall, the average household income (AHI) exceeds $150,000 for 82% of guests; in the summer an AHI greater than $150,000 applies to 59% of guests. Most customers live in California and the West coast region and are in their 40s or 50s. It is interesting and should be pointed out that between 1992 and 2004, CSV’s average customer age has increased by 10 years of age, from 47 to 57. Behaviorally, up to 70% of new guests became aware of CSV via word of mouth, while 30% visited as a result of travel agent referrals. The most common reasons for patronizing CSV (regardless of frequency) are rest, a healthy vacation option, fitness vacation option and spa activities and offerings. The average guest takes 3 to 4 vacations per year and first time guests returned to the resort within six years at a rate of 32% and 62% of initial return visitors returned again within 6 years. The two most common reasons for customers returning are health benefits (35%) and a great overall vacation (30%). CSV

Carnival Cruise Lines is the largest cruise company in North America and carries more than 60,000 passengers a week. The Carnival experience is the standard against what past cruisers judge their later cruise experiences. Carnival has captured the "fun" psychographic and has a strong reputation for an enjoyable, relaxed cruise. Furthermore, Carnival has a strong market expansion strategy for selling the mass-market cruise category and first-time cruisers. They have a clear vision and knowledge about the industry and a commitment to their brand essence, which is fun. Also, as an extension to their branding of the "fun" ships they are the low-price leaders. Because of their strong brand image they are able to achieve double-digit growth in

The final uncontrollable force affecting the cruise line industry is competition (Montalvo, 2007). This is probably the least influential force since 91% of the cruise line industry is made up of three companies-Carnival, Royal Caribbean, and Star. These three organizations are world-famous and have developed the cruise concept to the point that there is a cruise that will fit just about every person’s destination dream and budget reality.

The cruise industry has definitely evolved over the years to meet the changing demands and expectations of its passengers. The most important changes in the industry over the years are the introduction of shore excursions, new cruise routes and changes in the ships themselves. The first cruise ships offered few to no excursions while all the modern cruise lines offer over 100 excursions per cruise. These excursions can include participating in an actual boat race in Philipsburg, climbing waterfalls in Ocho Rios and scuba diving which is always very popular among passengers. They are designed to give the passengers a new and thrilling experience that they cannot attain at home. In the old days, the only cruise routes available were transatlantic and small European routes. The transatlantic route became unpopular in the 1960’s as air travel shortened travelling time from less than 20 hours by air versus four days by cruise. However, with the launch of newer,

The social and cultural influences on business vary from country to country however it is important that such factors are considered and include demographic and cultural aspects. These factors affect customer needs and the size of potential markets. Demographic changes have resulted in the development of the ‘grey’ market who are spending more on leisure and travelling. Lifestyles, tastes and fashions are all changing; customers require opportunities to visit new and interesting, often long-haul, and destinations.