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Carnival Cruise Lines Essay

1266 words - 6 pages

Although sea voyages have held an aura of mystique for centuries, only in recent decades have the general masses been able to experience open seas and exotic ports of call as a purely recreational activity. Cruises, i.e., sea voyages for pleasure, offer passengers the convenience of an assigned cabin as they sail along a fixed itinerary that concludes at their original point of sea embarkation. Almost everything about the entire cruise industry is international, from the routes traveled to the use of flags of convenience to the locations of shipyards to the staffing of vessels. By far the largest cruise competitor is Carnival Corp., which claims more than 40 percent of the global cruise ...view middle of the document...

2. What specific steps have Carnival Cruise Lines taken to benefit from global societal changes? Carnival has responded to global environmental changes in a variety of ways. Because a ship is highly vulnerable to terrorist acts, Carnival has instituted very strict security measures. It has also implemented strict health and safety measures. Carnival has dealt with economic recessions by offering shorter cruises that embark closer to home and with times of economic prosperity by offering longer cruises that incorporate more exotic destinations. It minimizes staffing costs by sourcing employees on a global basis. In addition, across its various lines, Carnival offers a wide variety of themes, classes of service, and destinations. 3. What are some of the differences by country that affect the operations of cruise lines? Political/legal, geographic, economic, and sociocultural differences all affect the operations of cruise lines, which are truly international in nature. For example, most shipping lines choose to flag their vessels in countries such as Liberia, Mongolia, or Panama because of the lower taxes and less stringent employment
practices required by the laws of those countries. Relatively few countries (Finland, France, Germany, Italy, Japan, and South Korea, for example) have shipyards capable of building cruise ships. Consequently, governments (e.g., Italy) may choose to subsidize the ship-building industry in order to secure contracts for their domestic firms. The favorable location of the Caribbean/Bahamas and the Hawaiian Islands makes them busy destinations year round, while Alaska is strictly a seasonal favorite. Because of their professional skills and fluency in English, Philippine workers comprise nearly a third of the seamen worldwide. Yet many other crew members also come from Eastern Europe, Vietnam, and China. Finally, in addition to the fact that many ships are designed to accommodate the economic realities of the mass market, others are specifically designed to appeal to the cultural preferences of their clientele (e.g., Costa, based in Italy, offers a distinctive Italian flavor). 4. Although most cruise line passengers are from the United States, the average number of vacation days taken by U.S. residents is lower than in most other high-income countries. For instance, the number is 13 days per year in the United States as compared to 42 days in Italy, 37 in France, 35 in Germany, and 25 in Japan. How might the cruise lines increase sales to people outside the United States? Given that the majority of people in the targeted income segment ($20,000-$60,000 per year) have yet to take a cruise, the major task confronting the cruise line industry is one of marketing. In addition to promoting the many appealing features of its various cruises and lines throughout the developed world and selected developing countries, Carnival...

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