Carnival Cruise Lines

In the travel and tourism industry, providing a high level of service and meeting myriad consumer demands are the name of the game. This is particularly true more than for most industries in the cruise ship industry. The passenger cruise ship industry rose from the ashes of the passenger shipping industry once the passenger jet became the preferred choice of passenger travel. The top two industry leaders are Carnival and Royal Caribbean, the former founded in 1972 and the latter 1970 (Floating 1). Today, it has evolved into an industry whose North American market alone provides $12 billion in annual revenues among fierce rivalry and competition for a percentage of that lucrative market share (Ellis 1). The cruise ship industry has evolved from moribund to muscle-bound over the past three decades. One of the biggest reasons is because of the satisfying economics involved in cruise ships. Unlike hotels, which fight to manage a 70% capacity, cruise ships regularly run at 95% capacity or higher (Floating 1). Additionally, unlike hotels passengers on cruise ships cannot wander off to other providers of food, beverages and entertainment. Carnival Corporation, a Miami-based cruise line, is the market share leader having captured one-third of the North American market share with $2.2 billion in annual sales (Ellis 1). This marketing analysis will focus on Carnival Corporation. Included in the analysis will be the

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t strong bookings, it is predicting a lower revenue yield growth in comparison with last year because of a capacity rise of 14% (Gould Stoddart 2). Another weakness that Carnival is in the midst of trying to overcome is its negatively publicity because of a ship fire in 1998. While the fire was contained to the aft of the ship and the only injuries were related to smoke-inhalation, the media widely covered the event as it occurred. The image of the Carnival Ecstasy at sea, with thick black smoke billowing up from the aft, added to consumer concerns about cruise ship safety. Nonetheless, industry experts contend cruise ship travel is one of the safest forms of travel in the world with records to document this fact, "With modern navigation and other technical equipment, along with strict fire-safety requirements, the danger of something happening at sea is very small" (Morris 3). However, this widely publicized event damaged consumer perception with respect to the nation's dominant cruise ship line. However, even the U.S. Government's Cruise Ship Safety Review Task Force has established the high level of safety in the ocean liner industry. During the summer of 1995, four foreign-flagged cruise ships experienced passenger fa

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