industry continues to expand its offering such that it can imitate land based vacations. Value chain 7.0 Value Chain Analysis Despite the differing preferences in consumer markets, Carnival does not need to alter its value chain to please different customer segments. Each cruise line brand is able to add value by offering the same brand experience with slightly different price points and cruise line experience offerings. The value chain, shown in Figure 7, is focused on giving customers high quality vacation packages, a wide variety of vacationing options and a delightful overall cruise vacation experience. In fact, 94.8% of cruise customers are completely satisfied with their experiences. 1 The infrastructure, human resource management, extraordinary procurements, operations and marketing and sales activities create more value and are therefore the stars of the value chain. Figure 7: Value Chain Analysis 1 Cruise Lines International Association 2008 Cruise Market Profile Study, p. 25, , accessed April 2009.
Infrastructure Carnival Corporation focuses on creating value by acquiring and assimilating new cruise lines from countries of strategic interest. As stated above, they are also building new ships, upgrading current ships, offering more entertainment and activities and expanding their ports to novel locations. 2 HRM Carnival trains its employees to deliver the utmost value to customers. They offer programs for development through local universities to teach 30,000 employees how to ensure that the guest experience corresponds with the experience the brand is offering. Along with these programs, there are constant employee growth opportunities within the company and a strong sensitivity to diverse cultures. Carnival also has employees fill out a comment card, where they evaluate all aspects of their job: employers, subordinates, the quality of their lodging, amenities, etc. The information provided from the staff allows Carnival to measure metrics and ensure that their employees are happy so that they can devote more time and energy into making guests happy. 3 Knowledge Development Carnival’s automated reservation system allows travel agents access to the customer’s travel and activity preferences, where they’ve traveled in the past, contact information and demographic data. This information allows Carnival to more effectively offer e-commerce applications where customers can book shore excursions and spa appointments. Carnival’s innovative reservation system also allowed them to upgrade the technology used in their ships and make efficient use of the Internet. 4 They were able to achieve this through advertising and allowing people to plan and book cruise trips online with their core state-of-the-art reservation system. Carnival has the ability to gather detailed information on cruisers and use that data to form direct relationships with customers through more focused marketing. Since Carnival is the largest cruise line in the industry, their extensive customer profile data enables them to target their market more effectively.
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- Management, Carnival Cruise Lines, Cruise ship, cruise line, Holland America Line, Cruise Line Industry