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MARKETING THE INDUSTRY SEGMENTS
4.03 Explain the cruise industry.
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The cruise experience

• Floating resorts or all-inclusive vacations
• Includes transportation, meals, lodging,
  recreation, and entertainment
• Service is equal for all passengers.
  Itineraries, destinations, and cabin locations
  are the main factors segmenting the cruise
  industry. Cruise lines offer diverse itineraries
  to appeal to different markets.

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Cruise Market Segments

• Mass market
• Middle market
• Luxury market

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Mass Market

• Passengers in this category have income from
  20,000-39,000.
• Carnival Cruises are popular with this market.

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Middle Market

• Passengers in this category have
  income from 40,000-59,000.
• This is the largest portion of the cruise market.
• Princess Cruises and Norwegian Cruises are
  popular with this market.

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Luxury Market

• Passengers in this category have
  income in excess of 60,000.
• This market level offers superior service and
  cuisine.
• Seabourn Spirit and the Radisson Diamond serve
  this market.

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• GRT Gross registered tonnage the amount of
  enclosed space on a ship one GRT is equal to 100
  cubic feet.
• Space ratio The amount of space per passenger
  on a cruise ship. The space ratio is a guide to
  the market level of a ship. A ratio of 35 or
  higher indicates a capacious ship.

Space ratio GRT/Number of passengers
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Accommodations
The location of a cabin on a cruise ship may be
the only distinction that separates passengers.

• Larger staterooms are on upper decks.
• Suites have separate bedroom and lounge/living
  areas.
• Some rooms on top decks have a terrace.
• Cabins on the upper decks are the most expensive.

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Accommodations(cont.)

• Cabins located on the outside of the upper decks
  have portholes (windows).
• Cabins located on the inside and lower decks have
  no windows.
• Cabins are designed for efficient use of space.

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Elements of a cruise

• Embarkation
• No cash needed
• Security checks
• Meals
• Daily program

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Embarkation

• Cruises are usually circle trips, departing and
  returning to the same port city, known as the
  embarkation point.

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No cash needed

• Prior to setting sail, passengers give an imprint
  of their credit card to open an account on board
  the ship.
• All purchases on board the ship are charged to
  the account.
• Passengers settle their charges at the end of the
  trip.
• Passengers without credit cards must make a cash
  deposit prior to setting sail.

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Security checks

• Cruise passengers are required to go through a
  security check.
• Some ships issue passengers a plastic card that
  serves as their cabin key, boarding pass, and ID
  for coming back from visiting a port of call.

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Meals

• Formal and informal dining
• Seating arrangements may be for 2 or 10
• Menus may be theme related or haute cuisine
• Buffet service available for casual dining
• Pizza bars, ice cream bars, and other treats
  available throughout the day
• Midnight buffets are a festive occasion
• Room service available
• Special appetizer parties on first and last
  nights of a cruise

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Reservations for the dining room

• One seating allows passengers to dine anytime
  during serving hours.
• Early or late seating requires passengers to dine
  at a set time.

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Daily program

• Each night, the program activities for the
  subsequent day is put in the passengers room.
• This information helps passengers plan their
  activities.

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Cruise passengers

• Active. With the variety of activities on a
  ship, it is easy to stay busy.
• Families. Special activities are designed for
  children so parents can relax and enjoy
  themselves.
• Gamblers. Casinos offer entertainment for
  passengers interested in playing.
• Those celebrating an event. Special occasions
  are often celebrated on cruise ships.

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Cruise passengers(cont.)

• International travelers. Cruise itineraries
  satisfy travelers who want to experience the
  appeal of other countries.
• Those who wish to relax. Passengers decide
  whether or not to participate in activities.
  Pools are available for lounging and sunning, and
  spas are available at an extra expense.
• Singles. Ships provide the opportunity to meet
  others.

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Cruise passengers(cont.)

• Those with special interests. Cruise lines have
  developed theme cruises to appeal to many
  special interest groups, i.e., whale watching,
  wine tasting, etc.

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Popular cruise destinations

• Bahamas
• Baltic Sea
• Bermuda
• The Caribbean
• Mediterranean
• South America
• Alaska

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Air-sea packages

• Transportation to the embarkation port may be
  included with a cruise package.
• By packaging the flight and cruise together,
  passengers only have to communicate with one
  company regarding their reservations.
• If flights are delayed, the ship may delay
  sailing to wait for the bulk of passengers, or
  passengers may be flown to meet the ship at the
  next port.
• Shuttle service between the airport and the port
  is usually included.

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Marketing strategies used by industry

• Many cruises are promoted through agencies.
  Cruise lines have sales teams who go to
  individual agencies to assist with advertising
  and sales promotion of their cruise line.
• Sales incentives are offered to agents to
  influence them to promote one cruise line over
  another.
• Brochures are the main promotional tool.
• Websites provide an opportunity for a timely
  response.

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Marketing strategies used by industry

• Sales promotion items used on ships include
  glassware, cruise line clothing, towels, and
  other souvenirs in the gift shops.
• Cruise lines utilize television advertising to
  reach mass markets and magazines to cater to
  particular market segments.
• Direct mailings are frequently used to follow up
  with cruise customers, and email is used to
  deliver newsletters and alert cruisers of
  upcoming specials.

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Trends in the cruise industry

• Has remained strong despite 9/11/01
• Rapidly growing segment
• Safer ship designs due to technology
• Individual ships marketed to specific target
  markets
• Navigational aids can pinpoint ship location at
  all times
• Niche marketing
• Baby boomer travel