Slide 1II. Savvy Marketing helped fuel industry growth
a.) Factors that helped change
consumer perceptions
b.) Ability of major competitors
to understand market
III. Types of Cruises, Benefits & Major competitors
dull and sedate
G5-C4
introduction
2005, Carnival Corp. was the market share leader and parent of
several lines:
$2.3B net income
$11.1 sales revenue
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Terrorism
6M+ customers
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Exceptional Value Proposition
Relatively Low Market Penetration Levels
About 20% of the U.S. population has ever taken a cruise, 9 to 10%
in the UK and 4 to 5% in Europe.
savvy marketing
Wide Appeal
127 million potential cruise guests in North America. More than
half of these individuals have expressed an interest in taking a
cruise as a vacation alternative
Positive Guest Demographics
Between 2005 and 2015, the number of people in the cruise
industry's primary age group of 45 years and older are expected to
grow by 24 million, or 20%, in the U.S. and Canada, and 20 million,
or 15%, in the major Western European countries
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High Guest Satisfaction Rates
North American cruise guests have a total satisfaction rate of 95%,
including nearly 45% of cruise guests stating that they are
extremely satisfied with the experience, which is defined in the
surveys as the highest satisfaction rating of any vacation
alternative they have experienced.
Significant Growth Potential
The number of new cruise ships currently on order from shipyards
indicates that cruise capacity is set to grow by 23% through
2012
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Passengers
thous.
Goal: to appeal wider variety of customer segments
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Shorter and cheaper cruises
More money spent on advertising and promotion programs
savvy marketing
Understand the market:
Understand, that wants and needs of customers are different in
various age or social groups
Focus on special interests, ideals and hobbies to fulfill their
desires gain new customers
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Offer special comforts, bigger suites,…
Serve special food and beverages – create new tastes and be
creative to offer customers unknown things
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Offer special activities related to the target group: sports,
music, relaxing, SPA, ……
tailor all these things to the target group (demographic, social,
lifestyle, age,….)
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younger couples
Sports and educational activities like: scuba diving, gourmet
cooking, wine tasting
“Romantic cruises”: honeymooners
multiroom suites
supervised activities children are not bored and parents can enjoy
holidays ….
Traditional target group cruises:
savvy marketing
Carnival Cruise line
Carnival Cruise Lines is the largest and most popular cruise line
in the world
Each Carnival vessel features at least three swimming pools, a full
gambling casino, on-board duty free shopping, as well as a "Nautica
Spa" health and fitness facility, and "Camp Carnival"
cruises
Royal Caribbean
Royal Caribbean cruise ship is like a recreation center, a grand
hotel, an art gallery, several restaurants a seaside resort... all
rolled into one
Where else can you experience gourmet dining, enjoy first class
entertainment, be pampered in spacious accommodations - all under
one-roof
cruises
Norwegian Cruise Line
With Norwegian Cruise Line, Freestyle Cruising is all about
flexibility and freedom. Freedom from stress. Freedom from
schedules. Freedom to create your own vacation. On an NCL cruise,
you can eat where you want, when you want, with whom you want. And
with up to 13 different restaurants and dining rooms on
board.
On NCL, you're always free to whatever:
+ Freestyle Accommodations
+ Freestyle Dining
+ Freestyle Fun
Holland America
Holland America Cruise Line offers a diverse range of activities
that are consistent across their ships: fitness workouts, art tours
and wine tastings, for example. In addition, tea is served each
afternoon. Evening entertainment includes many options, such as
dancing, movies and Las Vegas-style revues.
cruises
P&O Princess
Princess has raised cruising to a whole new level, with spacious
and accommodating ships packed with amenities. With two to three
main dining rooms, warm and intimate in scale, and two to three
spectacular theatres for a choice of entertainment nightly
cruises
cruises
Value-oriented cruise of 3-7 days; casual environment, deck, pool
space; activities, sports; sit-down and buffet-style
meals.
Carnival. Royal Caribbean, Norwegian Cruise Line
Premium
$250-$600
Semiformal, premium-quality Cruises of 7 days cruises;
more space and service; theme lounges, theaters, cigar bars;
activities, games, fitness facilities; premium food and beverage
offerings.
Holland America, P&O Princess.
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Amenities/Benefits: Cruises emphasize greater choice of food,
beverages, and entertainment options in a more formal atmosphere;
more spacious and luxurious accommodations; more exotic
itineraries
cruises
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Founded in 1840 as the British and North American Royal Mail Steam
Packet Company before gradually adapted itself to become one of the
world’s largest passenger lines and had provided year-round service
until 1968 before changing itself to concentrate on cruising and
summer transatlantic voyages for vacationers
Cunard - British-American owned cruise lines
cruises
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Wholly owned by Nippon Yusen Kaisha (NYK), the largest shipping
company in the world
Luxurious cruise ship line founded in 1988 and notable for its 2
medium-sized, high-end ships
cruises
cruises
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A luxury cruise line that operates four luxury, all-suite cruise
ships that sail itineraries all around the world throughout the
year.
Silversea provides its guests an option called Personalised
Voyages, a cruise industry first. This program allows guests to
choose their own embarkation and disembarkation ports, essentially
allowing them to create their own voyages.
cruises
The company refers to itself as The Yachts of Seabourn.
Seabourn specialises in small yachts, small enough to fit in many
exotic ports around the world that large cruise ships can't
reach.
Seabourn Cruise Line is an ultra luxury cruise line operates all
around the world, from short seven day Caribbean cruises to exotic
100+ day cruises. It is owned by Carnival Corporation, part of the
"World's Leading Cruise Lines" marketing group, Passengers
typically range in ages from the 40s to the 60s, but children are
still welcome.
cruises
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Each cruise itinerary is a unique, cultural travel experience,
blending world-class sites with smaller, off the beaten track
destinations. It also invites distinguished guest lecturers to
travel along the trips as to deliver lectures in accordance with
the destinations.
A British cruise line specialising in tours of historical or
cultural interest aimed at the upper end of the cruise
market.
cruises
terrorist attacks and political unrest around the world disrupted
industry revenues in 2002 and may to do so in the future.
high energy cost may squeeze industry profits
future challenges
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One of the industry’s biggest potential challenges is
over-capacity
The substantial growth and profits cruise lines enjoyed during
1990´s spurred them build more bigger ships at an increasing
rate
future challenges
The primary challenge is:
to increase the growth in passengers booking to fill the growing
capacity and recoup the huge investment in new ships.
One way to do this:
Is to develop long-term relationships with past customers in the
hopes of generating more repeat business
future challenges
future challenges
G5-C4
Given that the vast majority of vacationers around the world have
never gone on a cruise , however, the greatest potential for growth
involves converting nonusers into new customers
But attracting new customers will require an even better
UNDERSTANDING OF WHAT THOSE PEOPLE WANT from a vacation and how
they make their leisure purchase decisions.
future challenges
G5-C4
1.) Should the cruise vacation industry switch to younger
generation customers or concentrate on older customers
segment?
discussion points
discussion points
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G5-C4
Population is getting older. Older people tend to have more money
than youngsters and are more willing to spend their vacation in
comfort and luxury.
Should certainly invent special cruises for younger groups of
people with plenty of entertainment and sport facilities, but this
should be rather exception than a rule, i.g. a short school trip,
seminars, bachelor party etc.
discussion points
G5-C4
2.) According to surveys, the rate of people booking trips for
holidays shrinks…
What are the reasons for that and how can companies offering ship
cruises hold their level of customers?
discussion points
Financial crisis people are afraid of spending money
Economy slows down salaries shrink, or don’t rise at the same level
as inflation
Fear of terror attacks people stay in their own countries not to
risk their lives
Fear of diseases like H1N1
discussion points
Cheaper cruises
More service
Higher quality standards
More money for marketing, research and development to be able to
totally fulfill customers needs
discussion points
E able
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3.) With the worldwide economy fluctuating and prices of goods and
services going up, should cruise lines follow suit and bring the
prices of luxury and high-end vacation packages down ?
discussion points
G5-C4
Cruise lines should retain prices of luxury and high end vacation
packages. They may opt to cut costs without sacrificing the quality
of their product to keep up with the times. This is because luxury
and high end packages cater to a certain market niche – those who
are not price sensitive and are willing to spend for such
luxury.
discussion points