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 industry trends pertinent to formulating a sound marketing strategy, as well as a SWOT analysis to help determine how Carnival and best leverage their strengths while taking advantage of opportunities and being aware of industry and competitor threats.
The cruise ship industry is intensely competitive because industry participants offer consumers a pricing scheme that declines as the date of departure draws nearer. Further, the industry has been experiencing high annual growth rates and the number of passengers booki...