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Carnival Cruise Lines
What threats exist for the future performance of the cruise-line industry and, specifically, of Carnival Cruise Lines? If you were in charge of Carnival, how would you (a) try to prevent these threats from becoming reality, and (b) deal with them if they were realized?
There are numerous threats imaginable that could potentially affect Carnival Cruise Lines in the future; everything from the swine flu, to greater regulation of international water, carbon taxes and even terrorism could play a role. Basically, anything that would somehow disrupt the cruise lines business flow could be considered a threat to their profitability and sustainability. Furthermore, the range of the specific types of potential threats seem to fail within three broader categories; threats to safety, threats from regulatory agencies, and threats imposed from suitable alternatives.
The first threat mentioned, threats to safety, involves anything that could injure passengers' while participating on a cruise trip. The obvious examples are terrorism and any form of transmittable illness such as the...
Any such event could negatively affect the publicity of the industry in such a way that it significantly decreases demand for a lengthy period due to the negative publicity that the cruise line would undoubtedly receive. There have already been reports of the norovirus pathogen infecting nearly seven hundred people on one cruise liner (Public Health & Drinking Water 2006). To alleviate the potential for health and safety risks all measures should be taken to provide the appropriate screenings and on-board security and care. If a single incident occurs the detriment to the industry could be devastating.
The threats from regulations seem to have two key components. First there is the possibility that the international cruisers could fall under more tax regulations. Either directly, by being taxed on income from the port authorities in which they operate. Currently, they enjoy some amount of freedom from taxation due to the fact of their international status. Another, very real likelihood is that the industry could be taxed on fuel in which they are heavily reliant upon.…
Works Cited
Carnival Corporation. "Code of Business Conduct & Ethics." Carnival Corporate Information. 2006. http://phx.corporate-ir.net/phoenix.zhtml?c=140690&p=irol-govconduct (accessed February 10, 2011).
Public Health & Drinking Water. "Norovirus Sickens Nearly 700 on Cruise Ship." Water and Health. December 4, 2006. http://www.waterandhealth.org/tag/news / (accessed February 10, 2011).
Carnival Cruise Lines It is a strange reality that part of what made Carnival Cruise Lines the spirit of a "Fun Ship" came about because of how their vessel ran aground on its maiden voyage. The company literally used that experience to propel itself forward into a successful business model (442). Now it must live with the reality that when a similar mistake occurred, innocent customers perished. And there is no
Carnival Cruise Lines- What specific steps has Carnival Cruise Lines taken to benefit from global social changes?While before sea travel for pleasure was an opportunity available only to the very rich, during the th century, cruises increasingly became a form of accessible leisure travel to the less wealthy. In fact, they enabled people to take their families on vacation, have a reliable place to stay, and offered entertainment even between
(Ibid; paraphrased) on a more positive note, according to one report: "Cruise ships have become one of the many options for corporate meeting planners when faced with a decision regarding a destination for meetings and incentives (employee rewards). 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;
1. Should Carnival do “CRM?” Carnival should definitely do CRM. Carnival obtained its identity as the “fun ship” when its maiden voyage ran onto a sandbar: the management team turned the disaster into a enjoyable experience for passengers by opening the bar for them. It was an inspired reaction to a difficult situation—and it helped to earn the cruise line its reputation. However, having developed over the decades and become a mid-tier
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
Carnival Cruise Lines is one of the largest cruise ship lines in the world. Headquartered in Miami, the company operates under the Carnival, Holland America, Cunard, Princess, Seabourn, P&O and Costa brands. The cruise ship industry is highly-competitive, and risks being at overcapacity, but Carnival has been consistently profitable over the years, earning $15.4 billion in revenue and $1.07 billion in net income (MSN Moneycentral, 2014). It is estimated that