Carnival: Cruise Lines

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Carnival Cruise

1. What global forces have contributed to the growth of the cruise-line industry?

One of the forces that contributed to the growth of the cruise industry was the arrival of the transoceanic airline. The shipping lines had to come up with a way to compete with the new speedy and affordable way of travel. Another global force is the working middle class that the cruise industry now targets in addition to the rich.

2. What specific steps has Carnival Cruise Lines taken to benefit from global societal changes?

The major cruise lines have a policy of strict security checks for boarding passengers. In addition following 9/11, Carnival increased their number of U.S. ports from which the ships embarked. They also avoid cruising areas of increased danger and crime. During hard economic times, Carnival’s all-inclusive deals are bargains when compared to other travel options. Also the option of a shorter cruise or nearby ports has helped keep the cost down.

3. What are some of the national differences that affect the operations of cruise lines?

Since the cruise lines can obtain flags of convenience they benefit from the national differences. Some of the differences among the countries are economical, political, labor and environmental regulations. For example, a ship registered in Liberia, can take advantage of the lower taxes and its more lax employment rules. A third of the entire world’s ship’s crew is from the Philippines, where there are reasonable labor costs. 4. Although most cruise line passengers are from the United States, the average number of vacation days taken by U.S. residents is lower than that of workers in most other high-income countries. (13 days, compared with 42 in Italy, 37 in France, 35 in Germany, and 25 in Japan). How might the cruise lines increase sales to people outside the United States?

In order to increase sales among people outside the United States, Carnival needs to develop some sort of marketing

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