5 Forces of Carnival Cruise Line

5 May 2017

Charting a course for adventure: 25 ships from major cruise lines three more than last year – carrying about 10% more passengers. All this means more choices for travelers. Power of Suppliers A rise in fuel prices has been quite costly for the cruise industry, who are not only directly affected by fuel cost for running their own ships, but must aise ticket prices to cover the increase cost of flying due to high fuel prices and a hike in airfares. Quality, dependable suppliers are vital in order to ensure repeat cruisers.

If the food was good on the first cruise, consumers expect it to be up to par each time they cruise. This goes for advertising too. Carnival was the first cruise line to use television ads to promote itself. Travel services also play an important role in promoting and fulfilling cruise reservations. Many publications also get the word out to first time cruise vacationers who are curious about what is available. Bargaining Power of Customers Today’s cruise vacationers have many different lines to choose from, each offering a slightly different spin on cruising.

5 Forces of Carnival Cruise Line Essay Example

Most cruise lines target middle class vacationers with the grand ocean liner experience not found in decades. Many first time cruisers are lured in by moderately priced air and cruise package rates. Often one can buy a cruise vacation anywhere form $125-$250 per person, per night. Most hotel stays in major cities are more expensive per night, not including transportation as well as food. Along with low priced package rates, consumers are also demanding a unique vacation experience. Now cruises appeal to a younger, hipper audience, and it’s easy to see why.

Modern cruise ships are “floating resorts,” offering everything from state-of-the-art spas and gyms to in-line skating and Rock- climbing walls. Cruising is the fastest-growing segment of the travel Ships also stop at more ports, with over 1,800 destinations worldwide to choose from A marketing audit is a comprehensive, systematic, independent, and periodic examination of a company’s or business units marketing environment, objectives, strategies and activities with a view to determining problem areas and opportunities nd recommending a plan of action to improve the company’s marketing performance. kotler,2006, p. 719) Carnival Corporation’s strategic belief about its product positioning is based on the three primary divisions of the cruise market each having different demographics and characteristics and requirements. The three divisions are called contemporary, premium, and luxury. This helps better identify and serve the potential customers and realize better operational efficiency Carnival’s strategic objectives are: Place high priority on marketing in attempt to promote cruises as an alternative to land-based vacations.

Use innovation in attracting new customers, keeping existing ones, and in the operation activities. Remain the leader and innovator in the cruise industry by heavy promotional efforts, creating customer marketing. It emphasizes that the ship is the destination, while the cruise experience is the most important. They have done this in several ways. First of all, it uses newspaper ads, particularly on Sunday. In early 2001, they began using loyal customer testimonials to attract new customers. They are even using television commercials using songs with “fun” in them.

Travel agents help cruise lines sell 95% of all cruiseslf the travel agent specified a Carnival cruise before other options they received $100 on the spot. The competitive advantage that Carnival has on its rivals is the range of products it has to offer to each segment from cheap to luxury cruises and from short to long vacation cruises on a large fleet of ships offering a variety of activities. Carnival ships provide a fantasyland atmosphere (appendix 1)(2) 1 . http:// www. frommers. com/trip_ideas/cruise/line. cfm? linecd=CARNlVAL&section=nut 2. www. carnival. com 3.

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