FUN FOR ALL. ALL FOR FUN. Term Project Team: (Names of Team Members) MRKT 101-99V – Term e.g. Spring 2014
Industry Overview The cruise industry is the fastest growing segment of the travel industry. Since 1990, it has had a passenger growth rate of 7.2% per year. The total worldwide cruise industry is estimated at $36.2 billion. Cruising offers a diverse range of destinations, so there is a cruise for every type of person. It is a great way to sample different destinations, and 40% of cruise passengers have returned to a destination they visited on a cruise. In addition to the different destination options, todays cruise ships have a wide range of activities onboard for vacationers to choose from including wave pools, water parks, basketball courts, ice skating rinks, rock walls, demonstration kitchens, night clubs, casinos, and much more. It would be difficult to find a cruise ship that didn’t have something
Brand History Carnival Cruise Lines was founded in 1972 by Ted Arison. He wanted to make cruising a vacation experience that was accessible to everyone, not only for the rich. It was originally an independent company but in 1987, common stock was offered to acquire capital used to expand. Carnival Cruise Lines purchased Holland America Line and Seabourn Cruise Line. The company changed it’s name to Carnival Corporation in 1993 and continued to acquire more cruise lines, currently making it the world’s largest cruise ship operator.
Company Overview Carnival Corporation is the world’s largest cruise ship company with 52% market share. It operates a fleet of over 100 ships and serves 8.5 million guests per year. Carnival Corporation is a global cruise company comprised of some of the most recognized brands in many areas of the world: North America: Carnival Cruise Lines, Holland America Line, Princess Cruises, and Seabourn United Kingdom: P&O Cruises, and Cunard Germany: AIDA Cruises Southern Europe: Costa Cruises Spain: Ibero Cruises Australia: P&O Cruises Carnival’s total revenues for 2009-2012 (in millions): 2009 - $13,460 2010 - $14,469 2011 - $15,793 2012 - $15,382 A major factor in Carnival’s competitive advantage is that the company has a very broad target market. This allows them to reach a large variety of customers instead of a small part of the population. 30% of their customers are under the age of 35, 40% are between 35 and 55, and 30% are over 55. Carnival also maintains their competitive advantage with a balance between differentiation strategies and low-cost strategies.
SWOT Analysis Strengths: Dominant market share Below industry average costs and above average revenue Most experienced marketers of cruises in the world Global presence Weaknesses: Poor safety record Reports financial statements in dollars Over dependence on US market Opportunities: Expand luxury liners Increase berth capacity for European market by 37% Union of Costa Europa with Thomson Cruises, a British travel company Reaching Asian market Threats: Rising fuel costs Royal Caribbean Taking advantage of tax loopholes to avoid paying US corporation taxes Substitution for other types of travel (Air/land travel usually less expensive)
- Fall '18
- Professor assadipour
- Carnival Cruise Lines, cruise line, Holland America Line, Cruise lines, Carnival Corporation & PLC