3 norwegian cruise line holdings ltd makes 9273 per

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3. Norwegian Cruise Line Holdings Ltd. makes $9,273 per minute The American-Bermudian company Norwegian Cruise Line Holdings Ltd. headquartered in Miami holds 8% of the global cruise market. The company reported $4,874 billion revenue and a $ 1.07 billion profit in 2016. 4. Mediterranean Shipping Company S.A. (MSC) makes $3,900 per minute The world's largest privately-owned cruise company and the world's second-biggest container shipping operator. The company reported total revenues of $2.05 billion in 2016. 5. TUI Cruises makes $3,044 per minute The company reported $1.6 billion revenues in 2016. 6. Disney Cruise Line makes $1,788 per minute The subsidiary of The Walt Disney Company, Disney Cruise Line holds 3% worldwide cruise market by passengers. With total revenues of $950 million in 2016. From the available information it can said they the top 3 firms in the cruise industry control well over 75% of the market. This can be represented graphically as shown below. Figure-2: Cruise Revenue vs. Passenger as per 2015. (Source: Statista, 2017 ) While the 2 nd and 3 rd largest cruise firms combined have a lower market share than Carnival Plc. it would be wise to consider both of them as strong competitors given their net profit position. 14
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It should be noted that not all cruises are the same. The products can range vastly on the costings and services provided. The ships the customers sail on are also noticeably different. While each cruise provides its own amenities, the cruise types can be broadly categories in the following 3 segments: Contemporary - Offers good product at affordable prices. Fares range from $50-300 (Inside- Suite) pp per day. Itineraries range from 3 to 10 days. Typical passengers are mix of veterans and first-timers, many kids and couples in their 50s. Ships are large-sized (over 3000 passengers), providing large resort-like experience. Premium - Brands fares range from $200-500 pp per day. Itineraries range from 3 to 17 days. Typical passengers are predominantly first-timers, singles, families, kids. Ships are smaller and older, usually serving regional markets. Luxury - Services are premium (including 24-hour highly personalized concierge), prices are affordable, ships are new (refurbished more often), but the product is not all-inclusive. Figure-3: Breakdown of Cruise Segments and The Brands the Cruise Firms Operate in Each Segment. (Source: Cederholm, 2015 ) 15
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Strategic Solution In an industry where the top three firms dominate over 75% of the entire market, Carnival Plc.’s share is more than the combined shares of the closest competitors. The market is nevertheless quite competitive and Carnival Corporation’s multiple brands themselves create a competitive rivalry within the company; however, each brand caters toward a slightly different demographic or specializes in a particular market or geographic region.
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  • Fall '19
  • Carnival Cruise Lines, Cruise ship, Holland America Line, Cruise lines, Carnival Corporation and PLC

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