Cruise ship industry by pengtt

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               A case study of the Cruise
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               Industry and its
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                   over the decades.
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    Benny                  Sonny     Christina
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    Rachel                 Febby      Nadia
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  Second level • History of the Cruise Industry
                • Growth phase
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        Fourth level
                • Industry SWOT
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                • Conclusion
                • Q&A
                        title style
   Click to edit MasterCruise Ships
             History of
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        Increasing air text styles
  Second level to Europe in 1958 marked the
        stop flight
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        ending
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        ocean liners.
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                         History
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  Second level blow to the cruise ship
        The real
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          industry came in the 1960’s
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          when Boeing
            Fifth level  began selling 747s and
          other aircraft worldwide. Meanwhile,
          a global transportation network of
          airports was being established => The
          age of the jumbo jet had arrived.
            CRUISE SHIP
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 A cruise ship or cruise liner is a passenger ship used for
  pleasure voyages, where text styles
 Click to edit Master the voyage itself and the ship's
  amenities are part of the experience. Cruising has
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  become a major part of the tourism industry, with
        • of passengers each year.
  millionsThird level
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 The industry's rapid growth mainly focused in North
  American, European and smaller markets such as the
  Asia-Pacific region.
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            TURNING POINT
                                As the decade came to a close, it
                                was no longer fashionable,
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                                practical, or economical to travel
                                by boat.
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  The 1960s witnessed the
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 beginnings of the modern
 cruise industry. Cruise ship
companies concentrated on
     vacation trips in the
  Caribbean, and created a
   “fun ship” image which
attracted many passengers
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   Click to edit MasterCruise Ships
             History of
Click to edit Master textcruise vacation was
        For many years, a styles
        stereotyped as a big boat full of boring
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        old level
     • Third people…
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            Fifth level
    Click want a Master title style
Customers to editmore intimate experience

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  The new cruise line image was
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 solidified with the popularity of
  the TV series “The Love Boat”
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 which ran from 1977 until 1986
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    => Contributed to the idea a
growing trend of Fifth level
                   cruise ship travel
as a luxury vacation rather than a
  means to travel as a necessity.
 Many people also want to spend
   their vacations experiencing
 foreign cultures or learning new
    hobbies and more intimate
             experience.
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Customers to editmore intimate experience

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  The new cruise line image was
       Second level
 solidified with the popularity of
  the TV series “The Love Boat”
           • Third level
 which ran from 1977 until 1986
               Fourth level
    => Contributed to the idea a
growing trend of Fifth level
                   cruise ship travel
as a luxury vacation rather than a
  means to travel as a necessity.
 Many people also want to spend
   their vacations experiencing
 foreign cultures or learning new
    hobbies and more intimate
             experience.
         New Cruise Line Industry
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              Developments
Bigger ship with more amenities, features to attractive the customers:
 Click to edit Master text styles  Center training
            Restaurants  Sports complex
          Ceremonies
     Second level  Swimming pools                  Broadway theater
          Nightclubs        TV studio, casino       Shopping centers
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           Museum             Onboard wedding       Meeting Rooms
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  This fact has created a growing market for smaller cruise lines that
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  operate everything from 200-passenger cruise ships to yachts and
          sailboats that carry only 10 to 30 travelers at a time.
                    Master Cruise Ship
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          Inside a
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            Pool Area
      Second
Restaurants        level        Casino & Shops   Theater
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              Fourth level
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 Staterooms
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Cruise Lineedit Master title style

Click to editinMaster a result global cruise industry
Perception change 1980s, as text styles
average an 8.5 percent annual growth in booking at 1990s.
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Also low tax and operating cost if they register their ship in
Panama and Liberia.
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Cruising become most profitable service business during that
decade.

Due to concerns about terrorism, high energy cost, increased
pollution of harbors, and the like, industry growth slowed a bit
after 2002.
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    Three largest cruise operators

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          edit Corporation: as "The World’s          Most Popular
         Cruise Line“ in 1987 . In April 2003, Carnival Corporation
   Second level with P&O Princess Cruisesone ofcreating the
         combined
         world’s first global cruise operator ,
                                                  plc,
                                                         the largest
     • Third level companies in the world.
         leisure travel
         Royal Caribbean International: One of the biggest recent
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         mergers was the purchase of Celebrity Cruises by Royal
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         Caribbean on 30 July 1997, which has resulted in the
         creation of one of the largest cruise companies in the
         world.
         Star /Norwegian Cruise Lines: Once known as NCL’s
         Dreamward , big difference between NCL and other cruise
         lines is Freestyle Cruising “guests can do everything, or
         nothing at all”, operates a growing fleet sailing to more
         than 140 ports around the world.
                  SWOT Analysis
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                    Strengths
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   Second level 2 (transatlantic ocean liner)
    Queen Mary
     (Cunard Line)
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     Carnival Destiny (first cruise ship to be built
     overFourth level (Carnival Cruise Lines)
          100,000 grt)
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     Star Princess Grand-class Cruise ship, with the
     capacity of 2,600 passengers (Princess Cruises)
     Caribbean Princess (first cruise ship to have an
     outdoor movie theater) (Princess Cruises)
     Ventura (Britain’s largest cruise ship) (P&O
     Cruises)
                    Strengths
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                MORE OPTIONS AND CHOICES
  Second level
  Six cruising experiences serving the North American
       • each with
 market,Third levelits own unique style and ambiance – the
 contemporary sparkle of Carnival Cruise Lines; the Italian
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 charm of Costa Cruises; the classic British tradition of Cunard
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 Line; the five-star sophistication of Holland America Line; the
 complete escape of Princess Cruises; and the indulgent
 intimacy of the Yachts of Seabourn.
  Carnival UK who operate four of the world's leading cruise
 lines: P&O Cruises, Cunard, Princess Cruises and Ocean Village
 Holidays…along with sister companies of Carnival, Costa,
 Holland America Line and the Yachts of Seabourn.
                    Strengths
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   Better amenities and professional
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          Carnival corporation & plc is a global
     • Third level with over 80,000 employees
         company
        Fourth level more than 65,000 shipboard
         including
         employees. The company is headquartered
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         in Miami, Florida and London, England.
         Our cruise brands also have headquarters
         in the USA in Miami, Seattle, Washington
         and Santa Clarita, California, as well as in
         Southampton, England; Genoa, Italy;
         Rostock, Germany; and Sydney, Australia.
                    Weaknesses
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  Overcapacity
   Secondships to provide its operations worldwide. With 13 new ships on
    With 7 different cruise brands, offering different vacation products. Carnival Corp.
    has 92 cruise level
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      order, scheduled for delivery between now and 2012.

  Increased competition
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      Royal Carribean Cruises Ltd. (Miami, Florida)
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      Star Cruises (Kowloon, Hongkong)
      TUI (Hannover, Germany)

  Declining demand
     The demand of Cruises has fell last year, because of economic recession and the
     issue of swine flu.

  Passenger Safety
     Passengers are subjected to outbreaks of illness while onboard and occasionally
     fall overboard to their death. On Caribbean cruises, 87 people have fallen
     overboard since 2000.
                  Opportunities
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     New cruise destinations
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                Canada/New England, the
       Asia, level
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       Indian Ocean and Africa, the
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       Amazon and Brazil, the Middle
       East and the Arctic regions,
       including Newfoundland and
       Greenland
                      Opportunities
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The map below indicates where cruise ships are
operating on Oct 11, 2009. Where there are no dots,
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there is opportunity!
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                  Opportunities
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     More specific customer segments
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      Targeting specific demographic groups with a
        variety of entertainment options
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        Example: Kid & family friendly cruises
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                  Opportunities
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     Emerging ports around the world
  Second level Dhabi and Bahrain (the
     Dubai, Abu
     Arabian Gulf); Mumbai (India) etc.
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                  Opportunities
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     Shipboard Innovations
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    Casinos, full-scale seagoing aqua parks,
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    luxury spas, skating rinks
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                  Opportunities
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    Co-Branding Opportunities
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    Disney Cruises is a good example of a successful
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    co-branded cruise experience. Disney was so
        Fourth they
    successful;level ended their partnership with
             Cruises
    Premier Fifth leveland purchased their own ships.

    Fitness Co-Brand Marketing
    Example: Canyon Ranch Spa & Regent Seven Seas
    Cruises
                     Threats
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     Terrorism
  Second level present a target for terrorist
      Cruise ships
        organizations. A famous hijacking took
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        place in 1985 onboard the Achille Lauro in the
        Mediterranean Sea.
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      World Political Unrest
       Political unrest led to decreased industry
       revenue in 2002. (example: Somalia)
      High Energy Costs
        Increased energy costs lead to reduced
        profit margins
                       Threats
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Over Capacity
   With rapid growth, there may now be too many ships for companies to
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   remain profitable. Over capacity can restrain growth and create barriers to
   entry for new competition.
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 Economic Recession
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    With a Thirdeconomic slowdown, fewer people have the disposable income
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    for a leisure cruise.
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 Environmental Impact
    Cruise ships have a history of polluting the water they operate in. As
    environmental laws become more strict, this will create new costs and
    restrictions for cruise ship operators.

 Tax Challenges
    Cruise ships have been registered in many countries with weaker tax
    requirements; i.e. Liberia, Panama, and The Netherlands. Countries
    experiencing a reduction in tax revenue could move to add tariffs to cruise
    fares.
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             Conclusions
   Creating Master text styles
Click to edit long term relationships with past
   customers in the hopes of generating more
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   repeat business (offers substantial discounts
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   to past customers)
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     Because Cruise Ships create a lot of waste,
    the industry should emphasize on the
    growing environmental trend, and provide a
    better waste management.
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             Conclusions
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  passenger bookings so to recoup the
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  investments made in the new bigger ships.
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   Getting level opportunity of increasing
       Fourth the
  market value, Cruise Ships should create
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  cheaper tickets to customers
      (Giving promotional benefits or discounts)
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             Recommendations
                          Keys to Success
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              Giving more promotional programs
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              level
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              Improving the physical facilities on
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             older ships.
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      Questions We Discovered
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        With the size of Carnival Corp. and Royal
  Second level is there room for any competition?
       Caribbean,
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            CNBC reports: “…the two largest companies, Carnival
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            Fifth and Royal Caribbean International, are already
            so big they both face anti-trust issues, especially in
            Europe. The Carnival takeover of Princess only won
            the European Union's final approval after they agreed
            to make it one of the world's first dual listed
            companies, on the New York Stock Exchange and the
            London exchange…”
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      Questions We Discovered
Click How many passengers and crew have been lost
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   Second level the last 10 years?
      overboard in
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                Approximately 120 according to the Cruise
          FourthLines International Association
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           Questions We Discovered
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 Why do cruise vacations have a higher percentage of
 Click to edit than any text styles
satisfied customers Master other vacation experience?
•Value: Your ticket price covers accommodations, dining, entertainment, and more. In general, this price is
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20-40% below what you would pay for a land-based vacation of comparable quality.
•Simplicity: Don't come back from your vacation needing a vacation. Pack and unpack once. Skip the rental
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car. Effortlessly select among nice restaurants and activities knowing that all the details are taken care of.
•Activities: Fill your days with sightseeing, sports activities, cultural lectures, educational tours led by
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naturalists and historians or simply lounge by the pool and relax. At night, enjoy dance extravaganzas,
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musical revues, gaming or a quiet level gazing at the stars.
•New Horizons: With over 1,800 ports of call and an amazing array of places to see and things to do, there is
a perfect cruise for you. A cruise is an ideal way to see Alaska, where a ship allows you to a perfect vantage
point to see mighty glaciers and pods of whales.
•Family Fun: Families love cruising. Youth programs, kid-friendly menus and a safe ship to explore will keep
your children happy. Meanwhile, adults can have some well-deserved time alone.
•Pampering: Regardless of your budget, all cruise lines pamper their guests with a very high level of service.
From complimentary room service 24/7 to decadent spas, cruises are a wonderful place to be treated like
royalty
•Cuisine: Tantalize your taste buds with gourmet fare that showcases exotic ingredients, old standbys like
pizza and ice cream or spa cuisine for a healthy alternative.
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  Second level
     • Third levelQ&A
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