1. Cruise Ships Not Just for Grandma and Grandpa Anymore

2. ANDY CATHY MARYNAN RINKAMARTIN

3. About the Cruise industry 13.05 million passengers in 2008 70% of the passengers are from the US Generated 357,710 jobs in the US Paying a total of $16.2 billion in wages and salaries Average length of a cruise is 7.2 days

4. About the Cruise industry First cruise ship built in 1900 Biggest cruise ship: – The Independence Of The Seas – owned by Royal Carribean – accomodates 4370 passengers – 339m long

5. About the Cruise industry Before the 1980s, sea cruises were viewed as a vacation for elderly people That changed and the industry averaged an 8.5% annual growth in bookings throughout the 1990s Ships were registered in countries that had low taxes and operating costs Terrorism, high energy costs, increased pollution from harbors... made the industry slow down a bit in 2002

6. Savvy Marketing Helped Fuel Industry Growth

7. Product Many new ships were built that were not only much bigger and steadier than their predecessors, but also incorporated amenities

8. Product Understanding and catering to the differing needs, desires and purchase criteria of different customer segments

9. Product Contemporary/ Resort class Value-oriented cruises of 3-7 days, casual environment, newer or recently renovated ships, lots of open deck and pool space… Organized activities, dancing and buffet-style meals.

10. Product Premium cruises offer similar activities to a mainstream cruise line but with more upscale amenities and service. Holding between 500 and 1,500 passengers and offering more space per guest than contemporary vessels.

11. Product Premium Semiformal, premium- quality cruises of 7 days or longer, ships designed to offer more attentive service, theme lounges, theaters, cigar bars, games, fitness facilities, …

12. Product Luxury Cruise emphasize greater choice of food, beverage, and entertainment options in more formal atmosphere, more spacious & luxurious accommodations,…

13. Product  Luxury cruise ships are often smaller than others, holding anywhere from 100 to 1,000 passengers.  However they offer a higher ratio of staff to passengers to ensure every attention is paid to passenger comfort. The luxury cruising niche generally appeals to mature, experienced travelers more interested in life enrichment as opposed to a high onboard activity level. With a very high percentage of repeat passengers, luxury cruises generally enjoy the highest customer satisfaction levels.

14. Product Exclusive, yacht- like environment with only 100-200 passengers, high staff-to-customer ratio allows highly individualized service

15. Place Locating in more ports around the world to draw passengers from a wider geographic area.

16. Price Prices tailored to specific groups Adding shorter and cheaper cruises Different prices for types of cruises

17. Promotion Developing long-term relationships with past customers For instance: Carnival offered substantial discounts to past customers Always understanding of what new customers want from a vacation and how they make their leisure purchase decisions Advertising programs

18. STP Analysis S =Segmentation T =Targeting P =Positioning “STP” Analysis

19. Segment characteristics and behavior needs. The independent life The life remaining. (Children grow) The court life. (A child, but not growing) The court life. (A child, but not growing) The family building. (No children) The family building. (No children)

20. Segment and Product Positioning www.themegallery.com Segmentation and Behavior needs + relax + gain more experience from different parts of the world + sports, other activities + exciting vacation + good memories Independent life Product positioning + activities, games, and parties throughout the trip throughout the trip + varies destinations + longer destination cruises for singles + Sports e.g.. -Scuba diving, -Fishing, fly fishing - Jet ski – kayaks - Surfing - Diving

21. http://api.ning.com/files/cJUn1CUp1q1GfGmDfgDk- DKa6bxmfzVMrJVnOeCkPiuJGenVFBhprBnnUnYYnkHjnNthJEm1d G7wCkNjmABxm0QS6WZPgWWH/cruise.jpg Segment and Product Positioning Segmentation and Behavior needs - romantic memories - sports, other couple activities - relaxation - Honeymoon Family Building Product positioning + Varies romance place e.g. - room - restaurant - comfortable bars - massaging services + Sports e.g. -Scuba diving, -Fishing, fly fishing - Jet ski – kayaks - Surfing - Diving

22. Segment and Product Positioning The court life. (A child, but not growing) The court life. (A child, but not growing) Segmentation and Behavior needs - on their vacations - relax and enjoy themselves - their children are being well taken care of, making new friends, and having fun. Product positioning + Special offer for children and parent parents: -M ulti-room suites -M ulti-room suites + a lots of fun activities for various age groups such as: - Various sport - various show - playground Court life

23. The life remaining. (Children grow) Segment and Product Positioning Segmentation and Behavior needs - relaxing in healthy trip - enjoy comfortable travel - meditation - daily helping - health care travel Product positioning - offering the assisted living facilities - offer all trip nursing cares - massage and interesting therapy Remaining life

24. Conclusion The cruise industry may have some problems they need to attend to – Terrorist threats – Political unrest around the world – High energy costs – Pollution from harbors and cruisers – Sicknesses and epidemias on the cruises – Over-capacity

25. Conclusion The biggest challenge for the companies is to increase the number of passenger bookings The ships are bigger and there are more and more of them The investments in new ships are huge It’s important to develop long-term relationships with past customers The target market are customers who have never been on a cruise before

26. Q & A

27. What are the trends that influence consumers, that cruise liners should be conscious about?

28. 1) Individualism – they plan their own travel with their own tastes and wishes 2) Hedonism – about getting a taste of life and being able to experience things 3) Concern of the environment – important for the consumers to know that cruise ships are concerned of the environment 4) Origins – customers want to see something rare and something original

29. What are the global issues that have influenced the cruise industry over the past few years and pose challenges to the industry?

30. 1) economic downturns and rising fuel prices 2) health scares 3) natural disasters

31. What are the global mega trends that influence the cruise tourism industry as a whole that will have to be accounted for by the industry in order for it to thrive?

32. 1)Democratization – not only for the well off but also common people can now participate in what has in former times been a luxury 2) Globalization – cruise tourism as other branches is becoming more and more globalized - describes an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of exchange. - information help the consumers for choosing their satisfied cruise. example: flow of Asian tourists visiting Europe