Cruise Ships Group Two

Group Two Members Khuong M997z212 Son M997z209 Rattaya M997z230 Jarinthon M997z225 Thao M997z216 Huong M997z226

Contents Introduction about Sea Cruise 1 Factors changing customer perceptions 2 Future Challenges 5 Customer Segmentation 3 Marketing Mix 4 Conclusion & Suggestion 6

Sea Cruise Before and After 1980s

Before 1980s  Viewed as a dull and sedate vacation.  Just fit for elderly generation who liked playing shuffleboard, sipping tea…

After 1980s  This viewed began to change. => There was a growth in bookings global cruise, an 8.5% annual during the 1990s.  Some countries had the encourage policies like low taxes or operating costs when registering their ships.  In that decade, cruise lines were the most profitable off all service businesses.

After 2002  However, the industry’s increase slowed because some reasons: - Terrorism. - High energy costs. - Increased pollution of harbors. - ….

Introduction About Carnival Corporation & PLC

 Type: Public  Industry: Travel  Founded: 1972  Headquarters: United States, United Kingdom, Panama…  Revenue: $13,157 million (2009)  Operating income: $2,154 million (2009)  Net income: $1,790 million (2009)

Overview  Carnival Corporation & PLC comprises eleven individual cruise line brands, operating a combined fleet of 96 ships, totaling more than 160,000 berths. Executive control of each brand is by geographical location. - AIDA Cruises, Germany - Carnival Cruise Lines, United States - Costa Cruises, Italy - Cunard Line, United Kingdom - Holland America Line, United States - Ibero Cruises, Spain - Ocean Village, United Kingdom - P&O Cruises, United Kingdom - P&O Cruises Australia, Australia - Princess Cruises, United States - Seabourn Cruise Line, United States

Brands & Ships  Carnival Cruise Lines: Carnival Conquest, Carnival Destiny, Carnival Dream, Carnival Ecstasy, Carnival Elation, Carnival Fantasy…  Holland America Line: Amsterdam, Eurodam, Maasdam, Nieuw Amsterdam, Noordam, Oosterdam, Prinsendam, Rotterdam, Ryndam…  Princess Cruises: Caribbean Princess, Coral Princess, Crown Princess, Dawn Princess, Diamond Princess…  Seabourn Cruise Line: Seabourn Legend, Seabourn Pride, Seabourn Spirit, Seabourn Odyssey

Notable Ships  Carnival Corporation & plc have various notable ships as follows: - Queen Mary 2: the latest in a line of 'Cunard Queens', the prestigious transatlantic ocean liners (Cunard Line). - Carnival Destiny: the first cruise ship to be built over 100,000-GT (Carnival Cruise Lines). - Star Princess: received media attention when a large fire ripped through berths in March 2006 (Princess Cruises). - Caribbean Princess: the first cruise ship to have an outdoor movie theater (Princess Cruises). - Ventura: the largest cruise ship ever built for the British market (P&O Cruises). - Azura: a sister ship to Ventura, currently the largest cruise ship for the British market (P&O Cruises).

Factors Help Change Customer Perceptions

1. External Effects  The largest volume of booking in its history during the month following the release of Titanic movie.  Having many ports around the world – from Southampton in the UK to Hong Kong, Majorca, Australia and even Galveston, Texas – to draw passengers from a wider geographic area.

2. Changes In Business Strategy  Invested heavily in improving physical facilities: - Many new ship were built (bigger and steadier) - Incorporated amenities: casino, shopping arcades, theater, health spas, internet access in every stateroom, suites with private balconies, and even a skating rink.  Shorter and cheaper cruises were added to attract more price – sensitive customers.  Catering to the differing needs, desires and purchase criteria of different customer segments.

3. Social Factors  Reference groups: younger couples, honeymooners, singles crowd, various age groups.  Family: with young children by offering multiroom suites.  Roles and status: Princess, Famous Actors and Singers and Politicians

4. Personal Factors  Economic situation: Personal income, savings…  Lifestyle: is a person’s pattern of living as expressed in his/her psychographic. Singles : want to have non – stop entertainment Younger couples : enjoy sports and educational activities Honeymooners : romantic atmosphere Families with young children : large and multifunction room suites, supervised activities Elderly peoples : sedate vacation

Customer Segmentation

1. Younger Couples  Enjoy sports, educational activities, non-stop entertainment, experience new different parts of the world and offer passengers the chance to participate in such things as scuba diving, gourmet cooking, and wine tasting.

2. Honeymooners.  Romantic atmosphere, memorable honeymoon, relaxing time, and rejoice in the pristine and peaceful environment.

3. Families with Younger Children  Multi room suites, lots of supervised activities for various age groups, making new friends and having fun

4. Older People  Playing shuffleboard, sipping tea, dressing for dinner and let them to enjoy their vacation.

Marketing Mix

Product Facilities provided for Onboard fun:  Casual dining at Sea View Bistro.  Convenient 24-hour pizzeria.  Captain's cocktail party & gala dinner.  Complimentary 24-hour room service.  Camp Carnival for kid and teens.  Daily first-run movies.

Place  Travel agency (Local).  Visiting ports around the world.  Explore exotic destinations on land and at sea.  Pass through beautiful mountain ranges and seaside towns and witness wildlife.

Price  Different prices depend on types of cruises.  Cheaper price when compare with the competitor for attract more customers.

Promotion  Discount price for attract more customers, especially new customers.  Keep the current customer by providing free two-year subscription to Currents magazine (news, features and topics exclusively for Carnival past guests).

Future Challenges  Terrorist attack.  Political unrest.  High energy cost.  Difficulty in converting nonusers into customers.  Developing long-term relationship with customers requires a better understanding of what people want from a vacation and how they make their purchase decisions.

Opportunity  Substantial growth and profits cruise lines enjoyed during the 1990s spurred them to build more and bigger ships at an increasing rate.  Growth in passengers’ booking.

Conclusion  Cruise ship become popular day by day because it’s offering not only a holiday and much more convenience.  In the other hand, cruise ship industry need a high investment.  Cruise ship knows what their customer needs and know exactly their target segmentation.  Buying decision of customers are determine by many factors such as: cultural, social, personal…

Suggestions  Cruise lines should offer programs in the form of teenagers’ or children’s clubs, game areas and lounges for young guests, designed to make them feel at home at sea, and which, in effect, act as a kind of marketing, introducing young passengers to the basics of cruising and priming them for making a decision to cruise when they become adults. “By targeting them at a young age, we want to make them customers for life”

 Bringing new people in, both first-timers and people moving up from other cruise lines.  Once you get first-timers on a ship, you can almost depend on them to come back again.  A combination of Internet marketing and word-of-mouth recommendations may ultimately offer one of the most potent ways of reaching potential customers.