Expansion Strategies: Carnival Corporation has enjoyed most of its success in the American, European, and Australian markets but there are opportunities to attract potential markets in highly developed and emerging Asian nations too. Already, CSSC Carnival Cruise Shipping (Carnival China) , a Chinese-American cruise line, is scheduled to begin operation in 2019. Also, Carnival Corporation announced its intention to invest in the construction of a new terminal in the port of Sasebo, Japan. It is expected to open in 2020. Developing closer relationships with travel agents: Carnival’s travel agents are the lifeblood of the company. They are its principal marketing tool, main source of revenue, and relationship monitors with Carnival’s guests. Unfortunately, the nature of this relationship can make it hard to take full advantage of the tools available to other businesses. As an example, Carnival has never had access to complete customer lists, and has a difficult time linking customer histories. If a family cruises once a year in the Caribbean, Carnival might not even know it had repeat customers. Customers who consider – but do not purchase – a cruise are typically lost. The solution, however, is not necessarily to move away from the cruise agent relationship. Instead, Carnival should seek to partner with its various travel agencies and gather data from them on an ongoing basis. This would have several benefits. Carnival cruise lines could be more selective in which customers to offer discounts and upgrades. Currently, upgrades tend to go to customers of high-volume travel agencies: perhaps a value proposition for the agencies, but hardly the most efficient way to allocate scare resources. With an improved customer tracking system, and access to databases describing customers’ needs and resources, Carnival could focus on giving new cruisers an amazing experience or win over profitable frequent cruisers. 16
Focus on sustainable development and eco-tourism: Destinations such as Italy, Spain and Croatia have always attracted travellers. However, as cruise passengers continue to rise, tourism now threatens these cities’ infrastructure. Amongst actions of environmental activists and over-tourism in some of the major tourist cities, six countries have banned or imposed quotas on cruise ships and there are many more which could follow. On top of that, The Cruise Lines International Association (CLIA) cruise lines have pledged to reduce the rate of carbon emissions across the industry fleet by 40% by 2030. Miami-based Oceania Cruises became the latest operator to announce an initiative aimed at reducing plastic water bottle waste. In partnership with eco-friendly water company Vero Water, Oceania has pledged to eliminate millions of plastic water bottles every year as part of its OceaniaNEXT enhancement and the company’s larger Sail & Sustain environmental programme. The line’s six- strong fleet are outfitted with Vero’s distillation systems, which ultimately eliminate around three million plastic bottles annually.
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- Fall '19
- Carnival Cruise Lines, Cruise ship, Holland America Line, Cruise lines, Carnival Corporation and PLC