Case Study Undergraduate 1,368 words

Royal Caribbean Cruise Line IT Strategy Case Study

~7 min read 6 sections Business · Business Strategy

Abstract

This case study examines the information technology strategy of Royal Caribbean Cruise Line (RCCL), addressing the strategic importance of IT in the cruise industry and how it evolved from a siloed, risk-averse department in 1996 to a customer-centric organization. The paper analyzes the appropriateness of IT downsizing following September 2001, evaluates whether web technologies can reduce reliance on travel agents, and assesses alignment between IT and business plans. It concludes with prioritized investment recommendations covering crew management systems, passenger satisfaction tools such as the Silverwhere dining program, and long-term infrastructure development through Service-Oriented Architecture.

Key Takeaways

The Strategic Importance of IT in Entertainment and Cruise Businesses: IT's role in entertainment and cruise operations
RCCL's IT Environment: From 1996 to the Present: Evolution from siloed to customer-centric IT
Evaluating the Post-9/11 IT Downsizing Decision: Critique of September 2001 project cuts
Reducing Dependence on Travel Agents Through Web Technologies: Web tech strategy vs. travel agent channel
Aligning IT Plans with Business Goals: IT-business alignment and project breakdown value
Investment Criteria and Prioritization Recommendations: Prioritized IT investment framework for RCCL

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What makes this paper effective

Directly answers each case study question with a clear position supported by cited industry sources, giving the analysis credibility and structure.
Connects broader IT management principles — such as customer-centricity and alignment with business strategy — to specific RCCL decisions, showing theoretical grounding applied to a real organization.
Provides concrete, prioritized recommendations at the end rather than vague conclusions, demonstrating practical analytical thinking.

Key academic technique demonstrated

This paper demonstrates effective use of the case study response format: each prompt is treated as a discrete analytical question, answered with a clear thesis, supporting evidence drawn from industry literature, and a reasoned conclusion. The student integrates secondary sources (trade publications accessed via ProQuest) to validate claims about industry practices, rather than relying on opinion alone.

Structure breakdown

The paper follows a question-and-answer structure organized around six prompts from the RCCL case. It opens by establishing the general strategic importance of IT in entertainment, then narrows to the cruise industry specifically. Subsequent sections evaluate RCCL's IT maturity over time, critique the September 2001 downsizing, assess the feasibility of disintermediating travel agents, examine IT-business alignment under the CIO's leadership, and close with a prioritized framework for future investment decisions.

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Essay 1,368 words

The Strategic Importance of IT in Entertainment and Cruise Businesses

Information technology is strategically important to any modern entertainment business. The management of all forms of data — from customer records and costing information to supply chain data, procurement partners' service level agreement (SLA) contracts, and pricing and profitability analysis — depends on how well integrated an organization's information systems are. The greater the knowledge and data integration within any entertainment business, the greater its ability to respond effectively to fluctuations in costs, customer preferences, and supply chain disruptions, all of which are essential for remaining competitive. For entertainment businesses that rely on customer loyalty, as Harrah's does for example (Stanley, 31), the use of analytics to nurture greater customer loyalty over time (Stanley, 32) is critical to the successful execution of their business model.

The time, location, date, and cost constraints under which the cruise industry operates make investment in information technology a critical foundation for successful operations. Several factors make IT systems especially important in this context. First, supply chain coordination and planning at the ship level — including port logistics and the precise timing of food, beverage, and maintenance materials deliveries — must be coordinated across multiple departments of the cruise ship and sourcing departments at headquarters. Second, managing onboard crews and their continual training to improve customer service and ship maintenance skills requires IT systems to keep these activities organized (Upsaker, 113). Third, there must be a continual focus on delivering the best possible passenger experience. Giving onboard ship stewards a 360-degree view of the customer by partnering with travel agents — to learn customers' seating preferences at dinner or their interests in shore excursions, for example — represents a strategic use of IT in the cruise industry (Datz, 73).

5 Sections Hidden · 890 words

RCCL's IT Environment: From 1996 to the Present200 words

The IT department at RCCL in 1996 was operationally mature but had become insular, isolated, and silo-like in its functioning. Known for a command-and-control culture, low innovation, and a narrow focus…

Evaluating the Post-9/11 IT Downsizing Decision170 words

The downsizing of IT projects in September 2001 was too drastic. Rather than cutting so quickly and deeply into the Leapfrog initiative,…

Reducing Dependence on Travel Agents Through Web Technologies175 words

RCCL can reduce its dependence on travel agents using guided selling technologies (Lager, 25–26) — web-based applications that would run on their website, integrated with other systems through the Enterprise Application Integration (EAI) plans the company has referenced in interviews (Murphy, 153). The question, however, is whether RCCL actually wants to pursue this…

Aligning IT Plans with Business Goals150 words

Under the current CIO's leadership, RCCL's IT plans are tightly aligned with business plans. The CIO has led the department to treat internal departments that…

Investment Criteria and Prioritization Recommendations195 words

The CIO should first consider the costs and potential risks associated with personnel management. Ensuring that ships are staffed with knowledgeable crews who are continually…

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References

Datz, Todd. "All Hands on Tech; Designing an IT System from Scratch Can Be Both Daunting and Thrilling." CIO, 15 Jun. 2004, pp. 72–78. ABI/INFORM Global. ProQuest. Accessed 13 Jun. 2008.

Lager, Marshall. "Pointing to Profits." Customer Relationship Management, 1 May 2006, pp. 24–28, 30. ABI/INFORM Global. ProQuest. Accessed 16 Jun. 2008.

Murphy, Tom. "IT Matters." International Cruise & Ferry Review, 1 Oct. 2003, p. 153. ABI/INFORM Trade & Industry. ProQuest. Accessed 13 Jun. 2008.

Santangelo, Ronald A. "What's Happening in the Cruise Industry." Journal of Travel Research, vol. 23, no. 2, 1984, p. 3. ABI/INFORM Global. ProQuest. Accessed 16 Jun. 2008.

Siskin, Jonathan. "Royal Caribbean Sets the Pace in Onboard IT Systems." International Cruise & Ferry Review, 1 Oct. 2004, pp. 103–104, 106. ABI/INFORM Trade & Industry. ProQuest. Accessed 14 Jun. 2008.

Stanley, Tim. "High-Stakes Analytics." Optimize, 1 Feb. 2006, pp. 28–32, 12. ABI/INFORM Global. ProQuest. Accessed 14 Jun. 2008.

Upsaker, Per Steinar. "Solutions to Streamline Maritime Operations." International Cruise & Ferry Review, 1 Apr. 2002, p. 113. ABI/INFORM Trade & Industry. ProQuest. Accessed 5 Jun. 2008.

Vijayan, Jaikumar. "Cruise Line's IT Plans Stranded." Computerworld, 19 Nov. 2001, pp. 1, 16. ABI/INFORM Global. ProQuest. Accessed 16 Jun. 2008.

Key Concepts in This Paper

IT Alignment Customer-Centric IT Cruise Supply Chain Travel Agent Channel Silverwhere Program Post-9/11 Downsizing Service-Oriented Architecture Enterprise Application Integration Customer Loyalty IT Maturity