Carnival Cruise Lines

1. Carnival Cruise Lines
Dursun POLAT
Ali DOGAN
Recep MAZ
Faruk ALKAN

2. Carnival Cruises Company Overview
 Carnival Cruise Lines is a British-
American owned cruise line. Founded by Ted
Arison in 1972 and headquartered in Miami.
 Carnival Cruises is one of the world's most
innovative cruise lines
 The company has the largest fleet in the group
 1975 Began turning profits and operating above
100% capacity.
 1980’s maintained growth rate of ~30%
 1987 Arison sold 20% of his shares in CCL and
generated over $400 million for expansion.

3. History cont.
 Today, (22) ships 100% owned by Carnival World’s largest
multiple-night cruise company based on: number of
passengers revenues generated available capacity
 Carnival Cruise Lines is a member of the exclusive World's
Leading Cruise
 1991 Carnival attempted to purchase Premier Cruse Lines
but it was never consummated also took on its 3rd
superliner known as the Sensation, later in the year they
contracted the fourth superliner which was to be named the
Fascination
 1993-1995 addition of the Imagination for CCL, and the
Ryndam for Holland America Lines
 1997 attempted to buy Celebrity Cruise Lines for $525
million, but was overtaken by the inside ties of Royal
Caribbean to Celebrity.
 June of 1997 CCL purchased an Italian cruise company by
the name of Costa for $141 million.

4.  Largest Vacation Company in the world
 Publicly traded since 1987 on both the NYSE and the
London Stock exchange
 Carnival is the only company in the world to be included in
both the S&P 500 Index in the United States and the FTSE
100 Index in the United Kingdom.
 Headquartered in Miami, Florida, U.S.A. and London,
England
 75,000 employees worldwide. Operates a fleet of 81 ships,
and another 20 vessels scheduled for delivery by 2011.
 With approximately 144,000 guests and 60,000 crew
members, there are over 200,000 people at sea with
Carnival at any given time.

5. Customer Profiles
Carnival
Industry
Cruise
Average age was 46 years Average age was 50 years
with wide age difference
Household Income was about Household Income was about $ 99,000
$ 65,000
Carried fewer married
passenger (55%) 78% customers were married
Popular with people of all age
group
Popular with old and affluent
Half of the guests were first
timer
One third guests were first timer

6. Cruise Pricing
 Cruise price includes: all meals and entertainment; casino; nightclubs; theatrical
shows; movies; parties; a discotheque; health club; and swimming pools
 Cruises generally substantially booked several months in advance
 Other revenues:
• casino
• liquor and gift shop sales
• shore tours
• photography
• spa services
• promotional advertising by port of call merchants
• pre- and post-cruise land packages

7. Mission Statement
 Carnival has the unique ability to provide customers with a
wide range of vacation choices that appeal to any taste,
interest, lifestyle, or budget. With a mission to surpass
customer expectations, Carnival offers leisure travelers
vacation experiences equal or superior to those at the world's
most popular travel destinations. Carnival wants to remain the
leader and innovator in the cruise industry and intends to do
this with sophisticated promotional efforts and to gain loyalty
from former cruisers by refurbishing ships, varying activities
and ports of call, and being innovative in all aspects of ship
operations.

8. Vision Statement
 “To consistently
provide quality
cruise vacations
that exceed the
expectation of our
guests”

9. SWOT Analysis
Strengths
 Global Presence
 Brand Equity
 Strong Consumer Demand in Europe
 In 2006, all operating companies achieved
ISO 14001 Standards
 Diverse Staff
 Tons of entertainment aboard all fun ships

10. Weaknesses
 Hurricanes and Other Bad Weather
 Rising Cost of Fuel
 Less disposable income available
 Shifts in Currency Exchange Rates

11. Opportunities
 Expand Luxury Liners
 Offer more destinations
 Expand presence in China
 Expanding into Alaskan rail road market &
Motor Coach market for sightseeing and
tourism

12. Threats
 Competition:
Royal Caribbean Cruise Lines
Star Cruise Lines
 Less patronage on cruise ships due to
unpredictable hurricane seasons

13. Marketing Strategy
 They promote the cruise as an alternative
to land based vacations
 The ship is an experience by itself
 They use ports of call as an added bonus
to the cruise experience
 In 2010 their marketing campaign: "A
Million Ways to have Fun!"

14. Industry Competitors
Major Competitors: Other Competitors:
 Celebrity Cruises  American Hawaii Cruises
 Norwegian Cruise Lines  Club Med
 Star Cruise Lines  Commodore Cruise Line
 Princess Cruises  Cunard Line
 Royal Caribbean Cruise  Dolphin Cruise Line
Lines  Radisson Seven Seas
Cruises
 Royal Olympic Cruises
 Royal Cruise Line

15. Recommendations
•
• Increase the direct consumer contact points
• Developing the loyalty programs without comparing with
industry needs
• Special and adequate follow up by all centre executives for
the past guests
• Building up the IT infrastructure to improve and own
consumer database

16. Recommendations
• Developing a process to record the feedback of consumers
and working upon it
• Concentrate on developing repeat customers by building a
state-of-the-art customer relationship management (CRM)
system and by offering its current customers incentives to
refer friends and family members
• Enriching the website
• Building relationships with consumers
– greetings on occasions (birthdays, anniversaries etc)
– special rebates for new offerings

17. Sources
 “Annual Report.” (2009). Carnival Corporation & plc. (2,3,33).
 Carnival Scrubs Ship After Virus Sickens Nearly 700 Passengers.
Wall Street Journal. (Eastern Edition). New York, N.Y. November
20, 2006.
 Passengers Injured When Cruise Ship Rolls Sharply at Sea. Wall
Street Journal. (Eastern Edition). New York, N.Y. July 19, 2006.
 Carnival: CCL Stock Quotes. (2011) Morningstar.com.
http://quote.morningstar.com/Quote/Quote.aspx?ticker=CCL
 Royal Caribbean Cruise Ltd. (2011) Morningstar.com.
http://finance.yahoo.com/q?s=RCL
 “Cruise Lines Hit High Water Mark with Record Sales.” (2007)
Courier.org. http://www.courier.org/corgcms/content/view/141/2/
 Melvin R. Mattson. Marketing Management: Case Analysis by
Teams. McGraw-Hill Companies, Inc. (2009). Pgs. 196-212.
 Carnival Cruise Lines Official Website: www.carnival.com

18. Thank You !