CRUISE SHIPNot just for Grandpa and Grandma Anymore

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OUTLINEI. Introduction:

- Company profile- History- Brands

II. Growth of Global Cruise IndustryIII. Factors help build Demand for Cruise IndustryIV. Achievements of Carnival CorporationV. Economic Impact of the Cruise IndustryVI. Future ChallengesVII. Building Loyalty of CustomersVIII. Community RelationsIX. ConclusionX. Questions & Answers

COMPANY PROFILE

Carnival Corporation

• Field: Global cruise company and vacation company• Headquarters: Miami, Florida, U.S.A. and London, England• Employees worldwide: Approximately70,000• Total number of ships: 98• Chief Executive Officer: MickyArison

HISTORY

• Carnival Corporation & PLC is a British – American Panamanian corporation and the world’s largest cruise ship operator.

• Initially formed in 1972 under the name Carnival Cruise Lines by the late cruise industry pioneer Ted Arisonand gained significant acquisitions throughout its development.

HISTORY• In 1993, the company changed its name to Carnival Corporation and continued its

expansion further into virtually every market segment of the cruise industry with the acquisitions of Curnard Line in 1998 and Costa Cruises in 2000.

• In April 2003, agreements were finalized to combine Carnival Corporation with P&O Princess Cruises plc, creating the world’s first global cruise operator encompassing 12 highly recognizable brands and making the new company one of the largest leisure travel companies in the world.

BRANDS

Carnival Cruise Lines Princess Holland America The Yachts of Seabourn

Ibero CruisesCosta CruisesAIDACunard

P &O Cruises Ocean Village P &O Cruises Australia

Growth of Global Cruise Industry• The global cruise industry averaged an 8.5 percent annual growth in

bookings throughout the 1990s. Cruise lines were among the most profitable of all services businesses during that decade.

• Industry estimates are that 13.5 million people took a cruise vacation in 2009, with a total of 14.3 million passengers forecasted to sail in 2010.

• Nearly 40 new ships were built in the 1980s and during the 1990s, nearly 80 new ships debuted. By the end of 2009, over 100 new ships were introduced since 2000, with 12 new vessels on the way for 2010.

FACTORS HELP BUILD DEMAND FOR CRUISE

VACATIONS

IMPROVEMENTS IN PHYSICAL FACILITIES• New ships were built not only much

bigger and steadier than their predecessors, but also incorporated amenities such as casinos, shopping arcades, theaters, 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.

• Ships were located in more ports around the world to draw passengers from a wider geographic area.

• Major sums were devoted to advertising and promotion programs.

A variety of tailored cruises to different customer segments

• Firms understand and cater to the differing needs, desires, and purchase criteria of different customer segments.

• Ship designs, onboard amenities and activities, food, and beverage options, itineraries, and prices were all tailored to specific, demographic, social, and lifestyle groups.

Analysis of needs of customer segments

Couples in 50s and 60sWalking/jogging tracks, pool and piano bar and deck bar, bright and pleasant dining room serving tasty food…

Family with young childrenMultiroom suites, supervised activities

Achievements of Carnival Corporation• Carnival Corporation served over 6 million customers in 2005; more than one-third of

whom sailed from ports in the United Kingdom, Europe and Australia.• Firm’s net income in 2005: $2.3 billion Firm’s sales revenue in 2005: $11.1 billion• The firm forecasts an average of 8 percent annual revenue growth through 2009

Carnival Corporation’s report on quarterly earnings in 2010

1stquarter earnings( US dollar)

2ndquarter earnings(US dollar)

3rd quarter earnings(US dollar)

Net income $ 175 million $ 252 million $ 1.3 billion

Revenues $ 3.1 billion $3.2 billion $ 4.4 billion

1stquarter earnings(US dollar)

2nd quarter earnings(US dollar)

3rd quarter earnings(US dollar)

Net income $ 260 million $264 million $ 1,1 billion

Revenues $ 2.9 billion $ 2.9 billion $ 4.1 billion

Carnival Corporation’s report on quarterly earnings in 2009

ECONOMIC IMPACT OF THE CRUISE INDUSTRY

• Direct benefits: - cruise related expenditures such as that of the passengers and crew and employee wage.• Indirect benefits: - Passengers use the transportation, food, and lodging. - Repair and maintenance of the ships, gas and other fees and revenues associated with the tourism activities at a destination.

2004 2005 2006 2004/2005 2005/2006Total output 30.06 32.43 35.73 10.0% 10.2%

Employment 315.830 330.346 347.966 4.6% 5.3%

Wages and salaries (US)

12.42 13.52 14.73 8.8% 9.0%

FUTURE CHALLENGES• Terrorist attacks

• Political unrest

• High energy costs

• Over capacity

BUILDING LOYALTY OF CUSTOMERS

Interacting with customersMiami-based Carnival Cruise Lines has been a pioneer in leveraging social media to build customer loyalty and satisfaction. Carnival’s Senior Manager for Interactive Marketing Strategy Jordan Corderra and Social Media

Strategist Stephanie Leavitt about how they built such a successful and loyal online community.

BUILDING LOYALTY OF CUSTOMERS

Carnival Cruise Line’s social media components:• Blog: John Heald’s Blog • Virtual, interactive tour: FunShipIsland.com• Online community/ social network: CarnivalConnections.com• Twitter: CarnivalCruise• Flickr photostreams

Carnival Cruises successfully implemented social media

Carnival is having quite a popular blog, written by Carnival’s Senior Cruise Director John Heald; John Heald’s Blog.

The blog, which was started to give insight to the behind-the-scenes activity in the life of a cruise director, originally was a one month project but due to its success continued and is still growing strong.

Carnival Cruises successfully implemented social media

• Social networking: carnivalconnections.com

Carnivalconnections enablescustomer’s to connect to friends, invite friends and share experiences of previous cruises and expectations of future cruises with each other.

Also, the social network provide customer’s to write reviews about cruises which they can share with the public.

Building loyalty of customersCarnival Cruise Lines’ Rewards Program:

COMMUNITY RELATIONS• Through its cruise companies, Carnival Corporation & plc supports and

encourages the extraordinary efforts of its employees whose involvement in a wide variety of programs provide aid, donations and services to a huge array of charitable organizations

Carnival employees teach children at Miami’s Renaissance Elementary Charter School about the various aspects of business and the cruise industry as part of the Junior Achievement Mentoring Program.

Members of FUN Team clear debris from Biscayne Bay during the annual Baynanza

Beach Clean Up initiative

Community relations• From employee fundraisers and hands-on volunteer service initiatives to

cash and cruise donations and innovative philanthropic programs, Carnival strives to make a difference, both nationally and internationally.

• Over the years, these efforts have made Carnival Corporation & PLC a stronger company and have created extraordinary pride among its employees. Carnival Corporation & plc supports the accomplishments of its employees and will continue its efforts to build better and stronger communities throughout the world.

CONCLUSION

Carnival has the unique ability to provide customers with a wide range of vacation choices that appeal to any taste, interest, lifestyle, or budget.

Carnival has implemented new concept of cruising including some programs that have met with incredible success

One proposed definition of value is quality at the right price.

With a theme of "Fun Ships" and low pricing, Carnival Cruise Lines should seek a market penetration strategy.

THANK YOU FOR YOUR ATTENTION