Disadvantageous rates would also affect the consumer decision to go on a cruise thus influence CCL’s business performance. 11
Social Consumers from different cultures have different demands, the cruise liners need to consider their needs to remain competitive among rivals (Icahn, 2015). Change in consumers’ tastes and preferences (Windrosenetwork.com, n.d.). It is critical to maintain good media reputation, any negative news, reports or incidents could lead to a sharp decrease in demand (CCL, 2016a). Negative publicity concerning CCL or the cruise industry could harm the reputation of the company and decrease the sales and profitability (CCL, 2016a). Technological Importance of building more efficient and environmentally friendly fleets (CCL, 2016a). On-board online entertainment services (CCL, 2016a). Online bookings (CCL, 2016a) -customers are able to compare the cruise experience and book the trip anytime and in any location. Changes in consumers’ lifestyle and preferences led to these technological changes. Consumers are now more reliant on internet. CCL needs to recognise the importance of meeting the changes to maintain its strong market position. 12
Strategic Group Mapping- The cruise line industry on the surface seems very competitive just like its counterpart the airline industry. Both industries try their very best to reduce the costs of fuel and other consumable to best of their ability while constantly providing the peace of mind to their customers that are getting their money’s worth if not more for their money. Like airlines, there are a multitude of cruise lines each vying for the limited number of cruise customers. However, unlike the airline industry the cruise industry is dominated by some major corporations who themselves own multiple cruise lines. One may find it difficult to ascertain the pecking in the cruise industry given the variety of ships and services provided. But all the firms in the industry share one unshakable metric – revenue. Hence, the easiest way to size up the firms would be to use their revenues. Figure-1: Cruise Firms’ Per Minute Revenues. (Source: Kgnadmin’s blog, 2018 ) Given that the firms in the cruise industry earn billions of dollars a year it would be more relatable to the general observer to view their individual revenue over a period of just one minute. The firms are ranked in accordance to their revenue per minute as follows: 1. Carnival Corporation & Plc. makes $31,181 per minute The leading cruise company in the world, Carnival Corporation & plc is holding over 50% of the cruise market. The company has reported 16.39 billion USD revenue in 2016 and hefty profit of $2.779 billion in 2016. 2. Royal Caribbean Cruises Ltd. makes $16,165 per minute 13
The world’s second largest cruise company, Royal Caribbean Cruises Ltd. made $16,165 per minute in 2016 and a net profit of $ 1.07 billion.
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- Fall '19
- Carnival Cruise Lines, Cruise ship, Holland America Line, Cruise lines, Carnival Corporation and PLC