Seabourn cruise line which was partly acquired by

Seabourn Cruise Line which was partly acquired by Carnival Cruise Line provides the cruise
facility to the segmented part of the public. This is normally regarded as the cruise vacation for
the rich people who can effort expensive journeys. However, in contrast, Carnival Cruise Line
wants to cater to every segment of American and other regions and offer prices that can be effort
by everyone.
Carnival Corporation 7

Airtours, which was acquired party by Carnival Cruise Line offers the services such as the air
travel with 31 aircraft and hotel room services along the coast of Mediterranean and Canary
Islands. This reflects that the business of Airtours is completely different in nature against the
business of Carnival Cruise Line. However, the mutual market is vacation market but difference
in operations would affect the corporate strategy of Carnival Cruise Line.
Carnival Cruise Line being dominated in North America having stake in almost all the other
cruise lines that are operating in the same region. However, Carnival Cruise Line has diverted
into other regions such as Europe through the acquisition of Costa Cruises and United Kingdom
through the acquisition of Cunard Line. This means that the corporate strategy of CCL need to be
comprehensive so as to cover the cultural and operational differences and needs of the customers
in other regions.
Financial Analysis
The sales pattern of Carnival Corporation portrays that the company’s sales are increasing from
the year 2003 to the year 2008. This might be due to increase in the prices charged by the
company to its customers. Apart from this the increase in sales might also be due to inflation
effect over the period of time leading to increase in prices.
However, the growth pattern of sales revenue shows a drastic decrease in the initial year of
analysis and then further until 2006, then it began to increase gradually as shown in the excel
sheet and through graph. This can be described as the market of Carnival has been matured
quickly due to its services targeted for a particular segment, that is, elite class. However, increase
in sales growth can be taken as a positive aspect of company’s operations.
Carnival Corporation 8

Analyzing the operating margin of the company, it shows initially an increasing pattern, although
the sales growth was falling. This might reflect company charging higher process for its services
in later years which caused the company to earn greater operating margins. But in later years it
began to fall which may be due to reduction in the demand for company’s services in regard with
increase in prices.
Furthermore, the net profit margin of the company follows similar pattern to that of operating
margin as the operating expenses also increased with respect to the sales revenue due to increase
in operations of the company. The company should look forward to control their operating profit
margins and net profit margins because if they continue to decrease they can deteriorate
company’s profitability.