Cruise Ships

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Cruise Ships

• Not Just for Grandma and Grandpa Anymore

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ANDY
MARY
NAN
CATHY
RINKA
MARTIN
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About the Cruise industry

• 13.05 million passengers in 2008
• 70 of the passengers are from the US
• Generated 357,710 jobs in the US
• Paying a total of 16.2 billion in wages and
  salaries
• Average length of a cruise is 7.2 days

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About the Cruise industry

• First cruise ship built in 1900
• Biggest cruise ship
• The Independence Of The Seas
• owned by Royal Carribean
• accomodates 4370 passengers
• 339m long

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About the Cruise industry

• Before the 1980s, sea cruises were viewed as a
  vacation for elderly people
• That changed and the industry averaged an 8.5
  annual growth in bookings throughout the 1990s
• Ships were registered in countries that had low
  taxes and operating costs
• Terrorism, high energy costs, increased pollution
  from harbors... made the industry slow down a bit
  in 2002

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Savvy Marketing Helped Fuel Industry Growth
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Product

• Many new ships were built that were not only much
  bigger and steadier than their predecessors, but
  also incorporated amenities

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Product

• Understanding and catering to the differing
  needs, desires and purchase criteria of different
  customer segments

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Product
Contemporary/ Resort class Value-oriented cruises
of 3-7 days, casual environment, newer or
recently renovated ships, lots of open deck and
pool space Organized activities, dancing and
buffet-style meals.
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Product
Premium cruises offer similar activities to a
mainstream cruise line but with more upscale
amenities and service. Holding between 500
and 1,500 passengers and offering more space per
guest than contemporary vessels.
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Product
Premium Semiformal, premium-quality cruises of 7
days or longer, ships designed to offer more
attentive service, theme lounges, theaters, cigar
bars, games, fitness facilities,
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Product
Luxury Cruise emphasize greater choice of food,
beverage, and entertainment options in more
formal atmosphere, more spacious luxurious
accommodations,
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Product

• Luxury cruise ships are often smaller than
  others, holding anywhere from 100 to 1,000
  passengers.
• However they offer a higher ratio of staff to
  passengers to ensure every attention is paid to
  passenger comfort. The luxury cruising niche
  generally appeals to mature, experienced
  travelers more interested in life enrichment as
  opposed to a high onboard activity level. With a
  very high percentage of repeat passengers, luxury
  cruises generally enjoy the highest customer
  satisfaction levels.

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Product

• Exclusive, yacht-like environment with only
  100-200 passengers, high staff-to-customer ratio
  allows highly individualized service

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Place

• Locating in more ports around the world to
  draw passengers from a wider geographic area.

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Price

• Prices tailored to specific groups
• Adding shorter and cheaper cruises
• Different prices for types of cruises

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Promotion

• Advertising programs

• Developing long-term relationships with past
  customers
• For instance Carnival offered substantial
  discounts to past customers
• Always understanding of what new customers want
  from a vacation and how they make their leisure
  purchase decisions

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STP Analysis
S Segmentation
STP Analysis
T Targeting
P Positioning
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Segment characteristics and behavior needs.
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Segment and Product Positioning

Independent life
Segmentation and Behavior needs relax gain
more experience from different parts of the world
sports, other activities exciting vacation
good memories
Product positioning activities, games, and
parties throughout the trip varies
destinations longer destination cruises for
singles Sports e.g.. -Scuba diving,
-Fishing, fly fishing - Jet ski kayaks -
Surfing - Diving
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Segment and Product Positioning
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7wCkNjmABxm0QS6WZPgWWH/cruise.jpg
Family Building

• Segmentation and Behavior needs
• romantic memories
• sports, other couple activities
• relaxation
• - Honeymoon

Product positioning Varies romance place
e.g. - room - restaurant - comfortable bars -
massaging services Sports e.g. -Scuba diving,
-Fishing, fly fishing - Jet ski kayaks -
Surfing - Diving
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Segment and Product Positioning
The court life. (A child, but not growing)
Court life

• Segmentation and Behavior needs
• - on their vacations
• - relax and enjoy themselves
• - their children are being well taken care of,
  making new friends, and having fun.

Product positioning Special offer for
children and parent parents -Multi-room
suites a lots of fun activities for various
age groups such as - Various sport - various
show - playground
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Segment and Product Positioning
The life remaining. (Children grow)
Remaining life

• Segmentation and Behavior needs
• - relaxing in healthy trip
• enjoy comfortable travel
• meditation
• - daily helping
• - health care travel

• Product positioning
• - offering the assisted living facilities
• - offer all trip nursing cares
• - massage and interesting therapy

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Conclusion

• The cruise industry may have some problems they
  need to attend to
• Terrorist threats
• Political unrest around the world
• High energy costs
• Pollution from harbors and cruisers
• Sicknesses and epidemias on the cruises
• Over-capacity

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Conclusion

• The biggest challenge for the companies is to
  increase the number of passenger bookings
• The ships are bigger and there are more and more
  of them
• The investments in new ships are huge
• Its important to develop long-term relationships
  with past customers
• The target market are customers who have never
  been on a cruise before

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Q A
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What are the trends that influence consumers,
that cruise liners should be conscious about?
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• 1) Individualism
• they plan their own travel with their own
  tastes and wishes2) Hedonism
• about getting a taste of life and being able
  to experience things3) Concern of the
  environment
• important for the consumers to know that
  cruise ships are concerned of the environment4)
  Origins
• customers want to see something rare and
  something original

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• What are the global issues that have influenced
  the cruise industry over the past few years and
  pose challenges to the industry?

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• 1) economic downturns and rising fuel
  prices
• 2) health scares
• 3) natural disasters

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• What are the global mega trends that influence
  the cruise tourism industry as a whole that will
  have to be accounted for by the industry in order
  for it to thrive?

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• Democratization not only for the well off but
  also common people can now participate in what
  has in former times been a luxury
• 2) Globalization cruise tourism as other
  branches is becoming more and more globalized
• - describes an ongoing process by which
  regional economies, societies, and cultures have
  become integrated through a globe-spanning
  network of exchange.
• - information help the consumers for
  choosing their satisfied cruise.
• example flow of Asian tourists visiting Europe

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Thank you