Carnival Cruise Lines

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Ali DOGAN

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Faruk ALKAN

Carnival Cruises Company Overview

Carnival Cruise Lines is a British-American owned cruise line. Founded by Ted Arison in 1972 and headquartered in Miami.

Carnival Cruises is one of the world's most innovative cruise lines

The company has the largest fleet in the group

1975 Began turning profits and operating above 100% capacity.

1980’s maintained growth rate of ~30% 1987 Arison sold 20% of his shares in CCL and

generated over $400 million for expansion.

History cont.  Today, (22) ships 100% owned by Carnival World’s largest

multiple-night cruise company based on: number of passengers revenues generated available capacity

Carnival Cruise Lines is a member of the exclusive World's Leading Cruise

1991 Carnival attempted to purchase Premier Cruse Lines but it was never consummated also took on its 3rd superliner known as the Sensation, later in the year they contracted the fourth superliner which was to be named the Fascination

1993-1995 addition of the Imagination for CCL, and the Ryndam for Holland America Lines

1997 attempted to buy Celebrity Cruise Lines for $525 million, but was overtaken by the inside ties of Royal Caribbean to Celebrity.

June of 1997 CCL purchased an Italian cruise company by the name of Costa for $141 million.

Largest Vacation Company in the world Publicly traded since 1987 on both the NYSE and the

London Stock exchange Carnival is the only company in the world to be included in

both the S&P 500 Index in the United States and the FTSE 100 Index in the United Kingdom.

Headquartered in Miami, Florida, U.S.A. and London, England

75,000 employees worldwide. Operates a fleet of 81 ships, and another 20 vessels scheduled for delivery by 2011.

With approximately 144,000 guests and 60,000 crew members, there are over 200,000 people at sea with Carnival at any given time.

Customer Profiles

Average age was 46 years with wide age difference Household Income was about $ 65,000

Carried fewer married passenger (55%)

Popular with people of all age group

Half of the guests were first timer

Carnival Cruise

Industry

Average age was 50 years

Household Income was about $ 99,000

78% customers were married

Popular with old and affluent

One third guests were first timer

Cruise Pricing Cruise price includes: all meals and entertainment; casino; nightclubs; theatrical shows; movies; parties; a discotheque; health club; and swimming pools

Cruises generally substantially booked several months in advance

Other revenues:• casino • liquor and gift shop sales• shore tours• photography• spa services• promotional advertising by port of call merchants• pre- and post-cruise land packages

Mission Statement

Carnival has the unique ability to provide customers with a wide range of vacation choices that appeal to any taste, interest, lifestyle, or budget. With a mission to surpass customer expectations, Carnival offers leisure travelers vacation experiences equal or superior to those at the world's most popular travel destinations. Carnival wants to remain the leader and innovator in the cruise industry and intends to do this with sophisticated promotional efforts and to gain loyalty from former cruisers by refurbishing ships, varying activities and ports of call, and being innovative in all aspects of ship operations.

Vision Statement

“To consistently provide quality cruise vacations that exceed the expectation of our guests”

SWOT AnalysisStrengths

Global Presence Brand Equity Strong Consumer Demand in Europe In 2006, all operating companies achieved

ISO 14001 Standards Diverse Staff Tons of entertainment aboard all fun ships

Weaknesses

Hurricanes and Other Bad Weather

Rising Cost of Fuel

Less disposable income available

Shifts in Currency Exchange Rates

Opportunities

Expand Luxury Liners Offer more destinations Expand presence in China Expanding into Alaskan rail road market &

Motor Coach market for sightseeing and tourism

Threats

Competition: Royal Caribbean Cruise Lines Star Cruise Lines Less patronage on cruise ships due to

unpredictable hurricane seasons

Marketing Strategy

They promote the cruise as an alternative to land based vacations

The ship is an experience by itself They use ports of call as an added bonus

to the cruise experience In 2010 their marketing campaign: "A

Million Ways to have Fun!"

Industry Competitors Major Competitors:

Celebrity Cruises Norwegian Cruise Lines Star Cruise Lines Princess Cruises Royal Caribbean Cruise Lines

Other Competitors:

American Hawaii Cruises Club Med Commodore Cruise Line Cunard Line Dolphin Cruise Line Radisson Seven Seas Cruises Royal Olympic Cruises Royal Cruise Line

Recommendations• • Increase the direct consumer contact points

• Developing the loyalty programs without comparing with industry needs

• Special and adequate follow up by all centre executives for the past guests

• Building up the IT infrastructure to improve and own consumer database

• Developing a process to record the feedback of consumers and working upon it

• Concentrate on developing repeat customers by building a state-of-the-art customer relationship management (CRM) system and by offering its current customers incentives to refer friends and family members

• Enriching the website

• Building relationships with consumers – greetings on occasions (birthdays, anniversaries etc)– special rebates for new offerings

Recommendations

Sources “Annual Report.” (2009). Carnival Corporation & plc. (2,3,33). Carnival Scrubs Ship After Virus Sickens Nearly 700 Passengers.

Wall Street Journal. (Eastern Edition). New York, N.Y. November 20, 2006.

Passengers Injured When Cruise Ship Rolls Sharply at Sea. Wall Street Journal. (Eastern Edition). New York, N.Y. July 19, 2006.

Carnival: CCL Stock Quotes. (2011) Morningstar.com. http://quote.morningstar.com/Quote/Quote.aspx?ticker=CCL

Royal Caribbean Cruise Ltd. (2011) Morningstar.com. http://finance.yahoo.com/q?s=RCL

“Cruise Lines Hit High Water Mark with Record Sales.” (2007) Courier.org. http://www.courier.org/corgcms/content/view/141/2/

Melvin R. Mattson. Marketing Management: Case Analysis by Teams. McGraw-Hill Companies, Inc. (2009). Pgs. 196-212.

Carnival Cruise Lines Official Website: www.carnival.com

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