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In the past five years, all major cruise lines have unveiled mega cruise ships to attract a piece of the more than $20 billion corporate meeting and incentives market (Buia, 2001; as cited by Phillips, 2005).
II. PORTER'S FIVE FORCE ANALYSIS SUMMARY
To summarize the competitive rivalry in the industry is fierce although the threat of new entrants is highly improbable due to concentration in the industry. The industry as stated by the Abacus system report will need to concentrate on luring female travelers and retirees into booking their cruise lines. Younger travelers will be targeted with budget cruise offers. Fuel costs, passport requirements, and environmental concerns, terrorists concerns, and natural disasters have likelihood to impact the industry's profit margin. Internet booking of cruises also has and will continue to impact the order book for cruise lines. All three cruise lines focused upon in this analysis will remain strong due to their membership in the Cruise Line International Association (CLIA). The Royal Caribbean Cruise Line and Carnival Cruise Line are both especially strong, however as shown in this analysis Norwegian Cruise Line is holding their own running only slightly behind the other two. Thematic cruise line offers are growing as well as are customized cruise packages targeting specific groups of travelers. Cruise line travel, growing historically at a rate of 8.4% each year is projected to continue at the same or even greater percentage growth in the years to come. Cruise ships are now the preferred setting for corporate meetings as indicated in the report of Phillips (2005). The work entitled: "The World Cruise Shipping Industry to 2020" states that the challenges faced by the industry in the years ahead are those of: (1) the continuing public perception of terrorist threats; (2) Reluctance by some market sectors to go on fly/cruises; (3) the image of cruises; (4) the availability of suitable itineraries; (5) opposition from environmentalist groups; (6) limited specialist port facilities; and (5) the continued low level of market penetration by Asia. (2005) Factors stated to suggest future industry health are those of: (1) continued year-on-year passenger growth; (2) an increasing range of cruise types and...
(Ibid)
Bibliography
Which Way is the Travel Industry Headed? (2005) eMarketer. 14 Nov 2005 Online available at http://www.4hoteliers.com/4hots_fshw.php?mwi=1023.
Robertson, Graeme (2006) Cruise Ship Tourism Industry Lighthouse Foundation for the Seas and Oceans. Online available at http://www.lighthouse-foundation.org/index.php?id=112&L=1
New Breed of Travelers (2006) Abacus International 25 Feb 2006 Online available at http://www.4hoteliers.com/4hots_fshw.php?mwi=1184.
The World Cruise Shipping Industry to 2020 (2005) Bharat Book Bureau Online available at http://www.bharatbook.com/bookdetail.asp?bookid=7265&publisher=.
Eberhold, William B. (2005) Cruise Industry in Figures. Business Briefing, Global Cruise 2004.
CLIA 2006 Cruise Market Profile: Report of Findings (2006) CLIA April 2006.
Cruise Line Industry: Trends and Opportunities for Canadian Exporters (2005) Market Information United States Online available at http://ats.agr.ca/us/4120_e.htm.
ASTA Responds to Goldman Sachs Report (2006) ASTA Press Releases 24 March 2006. Online available at http://www.astanet.com/news/releasearchive06/032406a.asp.
FTC Closes Cruise Line Merger Investigations (2002) Federal Trade Commission Report. 4 October 2002 Online available at http://www.ftc.gov/opa/2002/10/cruiselines.htm.
Record Breaking Million Cruises (2005) IRN Research Press Release 2 June 2005 Online available at http://www.irn-research.com/press-release02June05.htm.
Phillips, WooMi (2005) an Analysis of Cruise Ship Meetings: Factors Influencing Organization Meeting Planners to Select Cruise Ships Over Hotels for Meetings - Hotel, Restaurant, Institution Management and Dietics, Kansas State University. Online available at http://www.haworthpress.com/store/ArticleAbstract.asp?sid=683DJVV1NEAF8P44U5JU8KUAT2LFBQ6C&ID=59936.
Cruise Line Industry
Bibliography
Which Way is the Travel Industry Headed? (2005) eMarketer. 14 Nov 2005 Online available at http://www.4hoteliers.com/4hots_fshw.php?mwi=1023.
Robertson, Graeme (2006) Cruise Ship Tourism Industry Lighthouse Foundation for the Seas and Oceans. Online available at http://www.lighthouse-foundation.org/index.php?id=112&L=1
New Breed of Travelers (2006) Abacus International 25 Feb 2006 Online available at http://www.4hoteliers.com/4hots_fshw.php?mwi=1184.
The World Cruise Shipping Industry to 2020 (2005) Bharat Book Bureau Online available at http://www.bharatbook.com/bookdetail.asp?bookid=7265&publisher=.
Cruise Line Industry: Trends and Opportunities for Canadian Exporters (2005) Market Information United States Online available at http://ats.agr.ca/us/4120_e.htm.
ASTA Responds to Goldman Sachs Report (2006) ASTA Press Releases 24 March 2006. Online available at http://www.astanet.com/news/releasearchive06/032406a.asp.
FTC Closes Cruise Line Merger Investigations (2002) Federal Trade Commission Report. 4 October 2002 Online available at http://www.ftc.gov/opa/2002/10/cruiselines.htm.
Record Breaking Million Cruises (2005) IRN Research Press Release 2 June 2005 Online available at http://www.irn-research.com/press-release02June05.htm.
Phillips, WooMi (2005) an Analysis of Cruise Ship Meetings: Factors Influencing Organization Meeting Planners to Select Cruise Ships Over Hotels for Meetings - Hotel, Restaurant, Institution Management and Dietics, Kansas State University. Online available at http://www.haworthpress.com/store/ArticleAbstract.asp?sid=683DJVV1NEAF8P44U5JU8KUAT2LFBQ6C&ID=59936.
S.-based headquarters, marketing and tour operations (Billion, 2006); Purchase of goods and services necessary for cruise operations, including food and beverages, fuel, hotel supplies and equipment, navigation and communication equipment, etc. (Billion, 2006).; Payments for port services at U.S. homeports and ports-of-call; and Maintenance and repair of cruise ships at U.S. shipyards and capital expenditures for port terminals, office facilities and other capital equipment (Billion, 2006). " The cruise industry economics benefits the
This third priority will eventually require the development of a Service-Oriented Architecture (SOA) that includes an enterprise content management (ECM) system that tracks internal documents, standard operating procedures and makes training more effective. As part of the SOA there also will need to be a unified Web-based portal that provides a glimpse of each customers' record and gives insights into how the onboard experience can be customized for them. Bibliography Todd
Ocean Village is UK-based and is uses the differentiated experience of offering families the opportunity to define their own cruise itinerary (Kwortnik, 2006). There is freedom as to when passengers will eat, what they choose to participate in, and the concept focuses on breaking out of the mold of highly predictable and regimented cruise programs. The two remaining brands, P&O Cruises Australia and the Yachts of Seabourn, each have
High-road competition focuses on service quality (Working for America Institute 2004), which means developing property in prime locations and the regular upkeep and upgrade of property. Hotels using high-road competition charge high room rates but provide top-class amenities, satisfying customer service and on-site attractions, such as restaurants, lounges, conference sites, gift shops and concierge service to attract customers and incline them to spend. Upper segments are likelier to engage in
Service Operations Celebrity Cruises Inc. falls under the competitive premium or cruising industry. The company faces the task of surviving within the competitive market while executing effective and efficient differentiation process. The aim of the strategy of the organization is to stand out in the perspective of the consumers hence improving on chances to combat competition. The report seeks to evaluate the situation of Celebrity Cruises within the industry and offer
"When a court strikes a contract provision for unconscionability it is declaring that provision is so unfair or oppressive that the court will refuse to enforce it." (Gillespie, 2007). The Thirteenth Amendment to the United States Constitution provides that, "Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to