Cruise ship_Not just for Grandma and Grandpa anymore

CHAMBUU

BATTULGA

巴圖M997Z207

MARIE

NIKKI

MARTINEZ

馬妳琪M997Z208

SUDIANA

COLYN

許毓殷M997Z237

MARKO

MARINIC

馬可M997Z206

ANJA

GRGIC

安利敏 M997Z205

TRAN THI

THANH

LOAN

陳氏青鑾 M997Z215

Contents

Overview about cruise shipCruise lines & Market shareChange in cruise ship industrySWOT analysesConclusion

Cruise ship Industry A large ship coined in1818,

operated out of New York City - the first shipping establishment, offering a scheduled from the U.S. to England.

Until 1975-1980, cruises offered shuffleboard, deck chairs, "drinks with umbrellas and little else for a few hundred passengers." After 1980, they offered increasing amenities. As of 2010, city-sized ships have dozens of amenities.

Thanh Loan

This industry is now one of the fastest growing sectors of the travel industry.

The global cruise ship industry sees an annual growth of about 7 percent.

There have been nine or more newly-built cruise ships added every year since 2001

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Appealing destination to cruise ship.

Most appealing destination to cruise ship.

Caribbean 45%

Alaska 25%

Bahamas 25%

Hawaii 15%

Europe 9%

Panama canal 8%

Mexico 8%

Source: CLIA 2008 Market profile study

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The number of passengers in each year (1990-2010)

Year

Number of passengers

(million)Year

Number of passengers

(million)

1990 4,5 2002 9,22

1997 6,8 2003 9,5

1999 8,7 2004 10,6

2000 8,0 2006 13,8

2001 8,4 2010 17,0

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Source: CLIA 2008 Market profile study

Cruise lines &Market share

Capacity

North America

Rest of world

Carnival 126,785 78,517

Royal Carribean

89,225 10,247

Louis 10,174

Thomson 7,153

Cuise line

Cruise ship industry’s market share

Cruise lines’s Capacity

Source: CLIA 2008 Market profile study Battu

The combination of an attractive vacation value

and marketing buzz surrounding new ship designs will provide opportunity to introduce new cruisers to the cruising experience. This will stimulate market growth for the industry through 2013. The end of 2013 projects passengers carried to reach 21.3 million, a 15.7% increase from 2010

Battu

Major competitors and Market share

* Total worldwide cruise passenger capacity will increase 6.9% over 2009. * Annualized total passengers carried worldwide in 2010 are estimated at 18.4 million. * The total worldwide cruise market is estimated at $26.8 billion, a 7.4% increase from 2009.

Battu

Factors:

Titanic

Facilities

Price

Advertising and Promotion

Customer Segment

Port Location

Changes in Cruise ship industry

Sudiana

Factors Titanic

The release of Titanic movie, about a passenger ship that sank somewhat turn out to have a surprising impact towards the demand for cruise vacations, for instance Royal Caribbean experienced their largest booking during the month following the movie release.

Facilities

New ships were built much bigger and steadier to improve their physical facilities and service include by adding casinos, shopping arcades, theatres, health spas, internet access in every stateroom, suite with private balconies, and even a skating rink.

Sudiana

Factors

Price Price were adjusted to the type of cruise, shorter

and cheaper cruise were available for price-sensitive customer.

Advertising and Promotion Major sums were devoted to advertising and

promotion programs to inform the customer about the type of cruise, the rates and the amenities available.

Sudiana

Factors

Customer Segment

Ship designs, onboard amenities and activities, food and beverage options, itineraries, and prices were all tailored to specific demographic, social, and lifestyle groups. For instance, P&O Princess launched “Ocean Village” cruises in the Mediterranean in 2003, targeted at younger couples who enjoy sports and educational activities.

Sudiana

Port Location

Ships were located in more ports around the world - from Southampton in the United Kingdom to Hong Kong, Majorca, Australia, and even Galveston, Texas - to draw passengers from a wider geographic area.

Sudiana

SWOT ANALYSIS

Nikki

STRENGTHS

EXCEPTIONAL VALUE PROPOSITION WIDE APPEAL POSITIVE GUEST DEMOGRAPHICS FAVORABLE SUPPY AND DEMAND BALANCE CONSISTENT MARKET GROWTH

Nikki

SMALL SEGMENT OF TOURISM ECONOMIC DOWNTURN

WEAKNESS

Nikki

OPPORTUNITIES

Globalization- deterritorialization”Growing middle class in many countries (ASIA)Expanding cruise tours to Asian countriesChanges in consumer perceptions of vacation (cruise ships as a real destination, not ports)Variety of lifestyles- satisfying demands

Anja

Terrorist attacks – modern piracy High energy costs Natural disasters- tsunami, typhoons; Demand and supply concentrated in North America- less buying power Potential changes in “FLAG OF CONVENIENCE” system Pollution of harbors

THREATS

Anja

Conclusion

Marko

Cruise ship industry today invests a lot of effort to sustainability

Climate ChangeEnergy ReductionEnvironmental FootprintShipboard Waste ManagementShipboard Wastewater ManagementEnvironmental ComplianceEnvironmental TrainingISO 14001 CertificationsCorporate Governance – Health, Environmental, Safety

and SecurityEmployee Training and BenefitsSustainability/ Corporate Social Responsibility

Marko

Energy reduction (ISO 14001 Environmental Management Systems (EMS):

Itinerary and arrival/ departure changesVessel shore power installations (“Cold Ironing”)Optimization of diesel generator use at sea and in portInstallation of more energy efficient lightingUse of anti-fouling release coating (marine coating) technology

Marko

Heating, Ventilation, and Air Conditioning (HVAC) Control/ Automation

SystemsPeriodic cleaning of propellers and hullsDynamic Trimming Assistant (DTA) systemsEvaporator managementDevelopment of new ships’ ability to use alternative

fuels

Thank you for attention!