Carnival Corporation - External Analysis Opportunities 1 The cruising season may be extended by using more ports-ofcall in the lower Caribbean and South

Carnival Corporation - External Analysis Opportunities 1...

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External Analysis:Opportunities. 1.) The cruising season may be extended by using more ports-of-call in the lower Caribbean and South America.2.) With historically low dollar, Carnival cruises represent good value for their money for European travelers.3.) The United States’ demographic profile is changing toward an aging population with more discretionary income.4.) Brand loyalty and loyalty to cruising are extremely high and should result in a large number of repeat customers.5.) Carnival 's opportunities for growth and expansion lie greatly in the largely untapped North American market. 85 -88 percent of this population have not taken cruise vacations yet. Because of this, cruise vacations targeting young, first-time passengers serve as a great marketing opportunity for the company.Threats. 1.) The potential over-capacity of the cruise-ship industry. Cruise ships are being added faster than the demand is growing. 2.) Growing concern in some ports-of-call that cruise line expansion should be curtailed.3.) Foreign-registered ships’ inability to transport people between ports in the United States.4.) The possibility that foreign-registered ships will become subject to all standards established by the National Transportation Safety Board, the Center for Disease Control, and other laws enacted by the U.S. Government.5.) Fixed costs, a significant part of the expense of operating a cruise line. Changes in airfare, fuel, labor, and/or shipbuilding costs could affect cruise operators with little
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advance notice.6.) Fierce competition in the cruise industry due to industry consolidation.In general, the cruise industry will continue to search for innovative ways to increase passenger volumes, on-board expenditures and ancillary revenue streams. The keys to the cruise experience appeal include the predictability of travel cost and the ease of the vacation decision. A telephone call to a single entity - and one check - will reserve a vacation, which at a minimum typically includes on-board dining, entertainment, children's programming, accommodations, and airfare to and from points of embarkment. In addition, cruise ships have greatly improved the quality of on-board experiences with more diverse food and beverage venues, entertainment and deck activities, meeting and conference facilities, golf, tennis and gaming. In short, cruise packages now provide experiences that have historically been the land-based resort's stock-in-trade. Cruise companies leverage opportunities to buy airfares in bulk, take the savings and pass them on to consumers. The overall price point typically looks very appealing for a cruise package vacation. While the industry once targeted the elderly or very young, it now has the entire family in its sights.
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  • Fall '13
  • Carnival Cruise Lines, cruise line, Holland America Line, Carnival

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