Cruise ShipsNot Just for Grandma and Grandpa Anymore

ANDY

CATHY

MARY NAN

RINKAMARTIN

About the Cruise industry

• 13.05 million passengers in 2008• 70% of the passengers are from the US• Generated 357,710 jobs in the US• Paying a total of $16.2 billion in wages and

salaries• Average length of a cruise is 7.2 days

About the Cruise industry

• First cruise ship built in 1900• Biggest cruise ship:

– The Independence Of The Seas– owned by Royal Carribean– accomodates 4370 passengers– 339m long

About the Cruise industry

• Before the 1980s, sea cruises were viewed as a vacation for elderly people

• That changed and the industry averaged an 8.5% annual growth in bookings throughout the 1990s

• Ships were registered in countries that had low taxes and operating costs

• Terrorism, high energy costs, increased pollution from harbors... made the industry slow down a bit in 2002

Savvy Marketing Helped Fuel Industry Growth

Product

Many new ships were built that were not only much bigger and steadier than their predecessors, but also incorporated amenities

ProductUnderstanding and catering to the differing needs, desires and purchase criteria of different customer segments

Product

Contemporary/ Resort classValue-oriented cruises of 3-7 days, casual environment, newer or recently renovated ships, lots of open deck and pool space…Organized activities, dancing and buffet-style meals.

ProductPremium cruises offer similar activities to a mainstream cruise line but with more upscale amenities and service.

Holding between 500 and 1,500 passengers and offering more space per guest than contemporary vessels.

ProductPremiumSemiformal, premium-quality cruises of 7 days or longer, ships designed to offer more attentive service, theme lounges, theaters, cigar bars, games, fitness facilities, …

Product

LuxuryCruise emphasize greater choice of food, beverage, and entertainment options in more formal atmosphere, more spacious & luxurious accommodations,…

ProductLuxury cruise ships are often smaller than others, holding anywhere from 100 to 1,000 passengers.However they offer a higher ratio of staff to passengers to ensure every attention is paid to passenger comfort. The luxury cruising niche generally appeals to mature, experienced travelers more interested in life enrichment as opposed to a high onboard activity level. With a very high percentage of repeat passengers, luxury cruises generally enjoy the highest customer satisfaction levels.

ProductExclusive, yacht-like environment with only 100-200 passengers, high staff-to-customer ratio allows highly individualized service

Place Locating in more ports around the world to draw

passengers from a wider geographic area.

Price Prices tailored to specific groups Adding shorter and cheaper cruises Different prices for types of cruises

Promotion

Developing long-term relationships with past customers For instance: Carnival offered substantial discounts to past customersAlways understanding of what new customers want from a vacation and how they make their leisure purchase decisions

Advertising programs

STP Analysis

S = Segmentation

T = Targeting

P = Positioning

““STP” STP” AnalysisAnalysis

Segment characteristics and behavior needs.

The independent lifeThe independent life

The life remaining. (Children grow)

The life remaining. (Children grow)

The court life.

(A child, but not growing)

The court life.

(A child, but not growing)

The family building.

(No children)

The family building.

(No children)

Segment and Product Positioning

www.themegallery.com

Segmentation and Behavior needs

+ relax + relax + gain more experience + gain more experience from different parts of the from different parts of the world world + sports, other activities+ sports, other activities+ exciting vacation + exciting vacation + good memories+ good memories

Independent life

Product positioning

+ activities, games, and parties+ activities, games, and parties throughout the tripthroughout the trip+ varies destinations+ varies destinations+ longer destination cruises for + longer destination cruises for singles singles + Sports e.g..+ Sports e.g..

-Scuba diving, -Scuba diving, -Fishing, fly fishing-Fishing, fly fishing- Jet ski – kayaks- Jet ski – kayaks- Surfing- Surfing- Diving- Diving

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G7wCkNjmABxm0QS6WZPgWWH/cruise.jpg

http://api.ning.com/files/cJUn1CUp1q1GfGmDfgDk-DKa6bxmfzVMrJVnOeCkPiuJGenVFBhprBnnUnYYnkHjnNthJEm1d

G7wCkNjmABxm0QS6WZPgWWH/cruise.jpg

Segment and Product Positioning

Segmentation and Behavior needs

- romantic memoriesromantic memories- sports, other couple sports, other couple activitiesactivities- relaxationrelaxation- Honeymoon- Honeymoon

Family Building

Product positioning+ Varies romance place e.g.+ Varies romance place e.g.

- room- room- restaurant- restaurant- comfortable bars- comfortable bars- massaging services- massaging services

+ Sports e.g.+ Sports e.g.-Scuba diving, -Scuba diving, -Fishing, fly fishing-Fishing, fly fishing- Jet ski – kayaks- Jet ski – kayaks- Surfing- Surfing- Diving- Diving

Segment and Product Positioning

The court life.

(A child, but not growing)

The court life.

(A child, but not growing)

Segmentation and Behavior needs

- on their vacations- on their vacations- relax and enjoy - relax and enjoy themselvesthemselves

-- their children are being their children are being well taken care of, making well taken care of, making new friends, and having funnew friends, and having fun..

Product positioning

+ Special offer + Special offer for children and for children and parent parents: parent parents:

-M-Multi-room suitesulti-room suites

+ a lots of fun activities for + a lots of fun activities for various age groups such as:various age groups such as:

- Various sport- Various sport- various show- various show- playground- playground

Court life

The life remaining. (Children grow)

The life remaining. (Children grow)

Segment and Product Positioning

Segmentation and Behavior needs- relaxing in healthy trip-enjoy comfortable travel -meditation- daily helping

- health care travel

Product positioning

- offering the assisted living facilities

- offer all trip nursing cares

- massage and interesting therapy

Remaining life

Conclusion

• The cruise industry may have some problems they need to attend to– Terrorist threats– Political unrest around the world– High energy costs– Pollution from harbors and cruisers– Sicknesses and epidemias on the cruises– Over-capacity

Conclusion

• The biggest challenge for the companies is to increase the number of passenger bookings

• The ships are bigger and there are more and more of them

• The investments in new ships are huge• It’s important to develop long-term

relationships with past customers• The target market are customers who have

never been on a cruise before

Q & A

What are the trends that influence consumers, that cruise liners should be

conscious about?

1) Individualism – they plan their own travel with their own tastes and wishes

2) Hedonism – about getting a taste of life and being able to experience things

3) Concern of the environment – important for the consumers to know that cruise ships are concerned of the environment

4) Origins – customers want to see something rare and something original

What are the global issues that have influenced the cruise industry over the past few

years and pose challenges to the industry?

1) economic downturns and rising fuel prices

2) health scares3) natural disasters

What are the global mega trends that influence the cruise tourism industry as a whole that will have

to be accounted for by the industry in order for it to thrive?

1) Democratization – not only for the well off but also common people can now participate in what has in former times been a luxury

2) Globalization – cruise tourism as other branches is becoming more and more globalized - describes an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of exchange. - information help the consumers for choosing their satisfied cruise.

example: flow of Asian tourists visiting Europe