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Table of Contents

1. INTRODUCTION OF CRUISE SHIP INDUSTRY. 2


1.1 HAPPENINGS ON A CRUISE SHIP 2
1.2 FACILITIES AVAILABLE ONBOARD 3
1.3 FACTORS WHICH AFFECT THE PRICING OF A CRUISE SHIP PACKAGE 3

2. AN OVERVIEW OF ROYAL CARIBBEAN CRUISES. 5


2.1 COMPETITION 5
2.2. REVENUE SOURCES AND GROWTH. 5
2.3 SHIP OPERATIONS 6
2.4 SAILINGS 6

3. AN OVERVIEW OF CARNIVAL CORPORATION 7


3.1 MARKET SHARE 7
3.2 COMPETITION 8
3.3 REVENUE 8

4. AN OVERVIEW NORWEGIAN CRUISE LINER 10


4.1 NORWEGIAN CRUISING LINE. 10
4.2 NORWEGIAN CORPORATE OVERVIEW (ACQUISITION & MERGERS) 12
4.3 NORWEGIAN CRUISE DINING 12
4.4 COURTESY FARE 13
4.5 AHEAD OF THE PACK 13
4.6 SAILINGS 14

5. CONCLUSION 15

6. REFERENCES 16

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1. Introduction Of Cruise Ship Industry.

A cruise can be explicated as an expedition by sea on a cruise liner for leisureliness. These
cruise ships normally docks at different ports through its excursion. A Cruiser (cruise ship tourist) is
a person who travels around the ship. A cruise ship voyages at good weather conditions and is
varied on the traffic in the port and the distances of destination, which the cruise ship has to cover.
Rather than going point-to-point tourists prefer to take part in leisure activities within the ship.
(Dowling R.K 2006). A cruise accommodate immense amounts of travelers.
Since the initial times of first passenger ship, the cruise ship industry has grown remarkably
well. This industrys development has incorporated excursion voyages, transatlantic travel, the post
war boom and advent of modern cruising (Dowling R.K 2006). Due to the growth of cruise ship
industry and this is one of the major areas of tourism growth.
The cruisers appreciate the gratification of having accommodation included in their travel
package. The accommodation that ship offer varies form 4 person rooms to lavish suites. Meals are
offered throughout the day from course meals to themed dinners. Hygienically stored outstanding
and variety of foods are provided onboard. After breakfast mid morning snack is provided and
lunch is followed by a cup of tea. All this and the dinner buffet are included in the fare. All cruise
ships has bars & lounges onboard and alcoholic beverages are not included in the fare. Usually the
bars are closed when the ship is docked, this would encourage the tourist to spend money at the
destinations, which they have docked.

1.1 Happenings On A Cruise Ship


The most attractive part of being in a cruise is where; theyve been offered a wide range of
leisure activities and entertainment. Larger ships cater variety of services and facilities which all the
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costs are included in the fare. Cruisers have the opportunity to involve in the leisure activities while
they are aboard. Entertainment, which the ship provides, includes discos, musical production,
gambling and cabaret performances these types of entertainment are included in the fare and there is
continuous entertainment through out the journey for everyone onboard. When the ship is off port
the ship offers varieties of activities such as deck games, swimming pool, lecturers n interesting
subjects, exercise classes, cinemas, casinos, lounges, bars, navigational bridge visits, health spas
themed dinners and cabrets. For cruisers that are less active can relax at the pool or the deck area.

1.2 Facilities Available Onboard


Also passengers have access to small electric appliances as well as hair saloons, sauna & massages,
laundry facilities. How ever these facilities are not included in the fare.

1.3 Factors Which Affect The Pricing Of A Cruise Ship Package


The cost of the cruise determined by the season and the length of the cruise. The price of a package
will be higher as a result of the high demand. During off peak package rates are lower to attract
tourist. Rates can be determined depending on the size and type of the cabin and the position of the
cabin. Larger cabins on higher decks provide Exotic views are more expensive. Cabins, which are
positions inside, are inexpensive than outside cabins. Most of the passengers prefer to be in the
center of the ship where motion is least felt. It also depends on the number of passengers in the
cabin.

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Source: (Cederholm, Market Realist, 2015) figure 1

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2. An Overview Of Royal Caribbean Cruises.
In 1968 royal Caribbean cruise was found in Miami, Florida is the second largest cruise
company in the world. Royal Caribbean cruise operates 41 ships under six brands,
The Royal Caribbean International
Celebrity Cruises
Pullmantur
Azamara Club Cruise
Croisres de France
TUI Cruises through 50% joint venture. These six brands have the access to almost 490 destinations
in the world. (Cederholm, Market Realist, 2015)
According to my findings, all six brands provides a variety of activities, amenities and
services including swimming pools, simulated surfing, sun decks, beauty salons, health clubs and
spa facilities, ice skating rinks, rock climbing walls, basketball courts, golf courses and a whole
range of dining , shopping and entertainment experience. (Cederholm, Market Realist, 2015)

2.1 Competition

Primary competition for royal Caribbean cruise is Carnival Corporation and Norwegian
cruise line. The PowerShares Dynamic Leisure and Entertainment Portfolio, 5.5% holds by royal
Caribbean cruises, 5% by Carnival Corporation & 2.8% by Norwegian cruise line holdings.
According to my research, other than competing with other cruise liners royal Caribbean
cruise line is also competes with land based vacation alternatives as well. Including resorts, hotels,
theme parks, casinos, & organized tours etc. (Cederholm, Market Realist, 2015)

2.2. Revenue sources and growth.

Royal Caribbean gain revenue from passenger ticket revenue & onboard and other revenue.
Passengers ticket included for various cruise activities and facilities and also for passengers air

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transportation. The cruise does gain more revenue through insurance protection, tour packages, land
based tours and air charters business to third parties.
The ship also earns through third party concessionaries who pays a certain amount of percentage
and sells their goods and services onboard. (Cederholm, Market Realist, 2015)

2.3 Ship operations

Royal Caribbean cruise line operates nearly 21 ships with a volume of 59,650 berths and
carries 3.5million guests sourced form more than 217 countries in 2013. The cruise offers duration
of two to 18 nights, which is much more longer than seven-day cruises which is offered by other
existing brands. This is the reason where royal Caribbean cruise reaches upper and end of the
contemporary brand and is therefore able to attract customers from the first-class segment who
would like to have longer cruise length. (Cederholm, Market Realist, 2015)

2.4 Sailings

Alaska
Asia
Bahamas
Bermuda
Australia
New Zealand
Canada
New England
Caribbean
Cuba
Europe
Hawai
Pacific Northwest
Panama Canal
Repositioning
South Pacific
Transatlantic
Transpacific

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3. An Overview of Carnival Corporation

In 1972 Carnival Corporation incorporated in panama, which is the biggest cruise company
in the globe. The organization operates 101 cruise ships that travels to most popular destinations in
Europe, Americas, Australia, & Asia under 10 brands. Carnival corporation has a world market
share of ~47%. (Cederholm, Market Realist, 2015)

The expansion of various segment by Carnival Corporation was varied to contemporary,


first class and luxury cruise services by acquiring various brands. The acquisition of Holland
America line in 1989, seaborne in 1992, costar cruises in 1997 and Cunard line in 1998 are
premium and luxury operators which carnival corporation has acquired.
England & Wales in 2000 was combined by Carnival Plc. Carnival Corporation and
Carnival Plc. function as a dual-listed Organization. York Stock Exchange (or NYSE) lists Carnival
corporation shares, and London Stock Exchange trades Carnival Plc. Stocks.

3.1 Market Share

Cruise line international association explains between 2003 and 2013, 5% of worldwide
tourists travel to their destinations by water, cruise & ferry. While land based tourism has increased
by 57%, 77% of demand has been gained by the cruising industry.
Compound annual growth rate (CAGR) of cruise guests has increased 5% 22million in
2013. CAGR of carnival cruises and Plc. cruise passengers has increased of 4.6% between 2007 and
2013, close to world industrys growth of 5%. (Cederholm, Market Realist, 2015)

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Source: (Cederholm, Market Realist, 2015) figure 2

3.2 Competition

More than 80% of global passengers accounts for these three major cruise liners the carnival
corporation, Royal Caribbean cruises Ltd, and Norwegian cruise line holdings. According to
findings the carnival corporation carries a market share of 47%, followed by the royal Caribbean
cruise carries a market share of 23% and Norwegian carries 10%. The competitive advantage of
Carnival Corporation is due to scale. 101 ships are being operated. Where royal Caribbean cruise
operate 41 ships its closest competitor. (Cederholm, 2015)
Small players in the industry such as MSC Cruises, Disney cruise line and Thomson cruises.
According to the chart above carnival corporation market share has decreased from 50% in 2008 to
47% in 2013. (Cederholm, Market Realist, 2015)

3.3 Revenue

75% of Carnival Corporations total revenue is included in the passenger ticket fare. The
fare is included with the sale of air and other transportation. A cruise provides transportation to
various destinations and also it also stipulates accommodations, food choice, daily entertainment
option which they are more cost effective than land based retreats. (Cederholm, Market Realist,
2015)
Such Activities & facilities are onboard which includes nightclubs, bars, lounges, theater
shows, movies, libraries, health clubs, swimming pools, and much more. These recreation activities
and facilities are included in the ticket price. Other competitors such as royal Caribbean and
Norwegian cruise also derive more than70% of their income form passenger ticket fare.
Some onboard activities arent apart of the passenger ticket price. Such as non-alcoholic
beverages, alcoholic beverages, short excursion, casino, gift shop laundry, service spas and other

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dining options. Revenue which are earned from these activities comprise 24% of the total income.
(Cederholm, Market Realist, 2015)

Source: (Cederholm, Market Realist, 2015) Figure 3

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4. An Overview Norwegian Cruise Liner

In 1966 Norwegian Cruise line; a Bermudian Company headquarter in unincorporated


Miami Dade Country Florida, started its operations under the name of Norwegian Caribbean Line.
Norwegian cruise liner has created its own signature as a Freestyle cruising ship. Challenging the
traditional mode of cruising for other cruise competitors. Norwegian cruise line continuous
innovator of 44 years breaking the limitations of traditional cruising. Allowing guests more
looseness, freedom and flexibility freestyle cruising has modernized. (Norwegian Cruise Line,
2014)
Launch of 13 new ships in 1999 Norwegian sky, Norwegian Sun, Norwegian Star,
Norwegian Dawn, Norwegian Spirit, Pride Of America, Norwegian Jewel, Norwegian Jade (Pride
in Hawai) , Norwegian Pearl & Norwegian Gem. More than 26,000 berths are in Norwegians 11
ships. In Norwegian Breakaway Modest and most innovative ship launched in 2013, Norwegian
Getaway launched in 2014.. And Norwegian Cruise liners next chapter of innovative ship The
Breakaway-Plus Class Launched in 2015. (Norwegian Cruise Line, 2014)

4.1 Norwegian Cruising Line.

Breakaway Plus Class

Norwegian Bliss
Norwegian Escape
Breakaway Class
Norwegian Breakaway Norwegian Getaway

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Jewel Class

Norwegian Jewel Norwegian Jade

Norwegian Gem Norwegian Pearl

Epic Class

Norwegian Epic

Dawn Class

Norwegian Dawn Norwegian Star

Sky class

Norwegian Sun Norwegian Sky

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Norwegian Cruise Liner
Pride of America

4.2 Norwegian Corporate Overview (Acquisition & Mergers)

Norwegian acquired by Genting Hong Kong Limited (Star Cruises Ltd). Acquisition of
Norwegian, Star Cruises became the third largest cruise line in the world. While 100% of ownership
owned by star company embarked on expansions, onboard product enhancement and innovation.
Apollo Management a private equity group agreed
to invest $ 1billion cash equity in Norwegian in august
2007. Apollo has 50% of ownership of Norwegian and
majority of the companys board with certain rights
retains by star company in 7th January 2008.
Norwegian cruise line holdings broadcasted that
its has agreed to acquire Prestige cruises international Inc. in 2014, the market leader in the niche
cruise segment and parent company of Oceania Cruises & Regent Seven Seas Cruises. NASDAQ
Stock exchange officially listed Norwegian Cruise Line under NCLH(Norwegian Cruise line
holdings, Ltd) in 2013. (Norwegian Cruise Line, 2014)

4.3 Norwegian Cruise Dining

Unique Features; The organization delivered the utmost innovative ship to date , 4 000
passenger ship Norwegian getaway on the 10th January 2014. The lines ship hull artwork from
Miamis own David LEBO Le Batard and offers cruisers exceptional dining & entertainment
offerings including seafood restaurant Ocean blue by Iron chef Geoffrey Zakarian; a bakery by
Buddy Valastro star of TLC series. (Norwegian Cruise Line, 2014)
Freestyle Cruising offered by Norwegian gives the cruises the freedom and flexibility to
do what the cruises want, when they want. Convene to a four-course meal or snatch a burger hot off
the grill, dress up or dress down, sit with friend or make new friends, more and more dining options
and cruisers are free to enjoy them at their own schedule. (Ship detective LLC, 2017)

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Dining on Norwegian Getaway Dining on Norwegian Epic

4.4 Courtesy fare

Cruise fare includes meals in 2 main feasting rooms, help your self buffet, variety casual
cafs, grills and ongoing choices. (Ship detective LLC, 2017).

4.5 Ahead of the Pack

The companys dive in snorkeling program was the first of its kind in industry, out
island; Norwegian was the first cruise liner to provide such an experience at great Stirrup Cay, its
private island in the Bahamas. (Ship detective LLC, 2017)

Norwegian was the first in the industry to offer big name entertainers and full Broadway
production within fully equipped theaters. (Ship detective LLC, 2017)

Norwegian s childrens programme; created for junior cruisers ages 2-17, the kids crew
programs offers organized activities, games, parties and menus. (Ship detective LLC, 2017)
First ice bar at sea; Norwegian launched its modest and innovative Norwegian epic in June
2010, which features the first true ice bar at the sea with a bar, walls, tables, stools, glasses & life
size sculptures all made from ice. (Ship detective LLC, 2017)

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First accommodation for solo travellers; the studios staterooms only on Norwegian epic,
which makes cruising more attractive to solo travellers with unique and thoughtfully designed
accommodations without the single supplement cruise price. (Ship detective LLC, 2017)

Staterooms & Suites On Norwegian Epic

4.6 Sailings

Alaska
Asia
Australia
New Zealand
Bahamas
Florida
Bermuda
Canada
New England
Caribbean
Cuba
Europe
Hawai
Mexican Riviera
Pacific Coastal
Panama canal
South America
Transatlantic

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5. Conclusion

In conclusion, the cruise industry is becoming a major impact on world tourism industry,
where there are many cruise liners are rapidly expanding their fleets to its customers. Cruise ship
industry has been identified which provides a great strong opportunity to enhance overall
attractiveness of the industry. As an effect of this we can see that carnival corporation faces the
challenge to remain the market leader and retain their customer base in a saturated market.
People in the era of 21st century expectations are different where as they simply focuses on
how unique the product is and the low cost where as customers no longer focus on the products
function and features of it.
Slow responsiveness to industry trends, customer demands and lack of commitment to their
stakeholders will result decrease in growth of the liner. If a company wants to retain their market
share, should attain to maintain continuous innovation will help the organization to sustain.

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6. References
Dowling RK 2006. Cruise Ship Tourism. Australia: CAB International Publishing. Oval
International College: Tourism Management Study Guide, 2007.

Cederholm, T. (2015, January 22). Market Realist. Retrieved July 27, 2017, from Market
Realist: http://marketrealist.com/

Cederholm, T. (2015, January 14). Market Realist. Retrieved July 27, 2017, from Market
Realist: http://marketrealist.com/

Norwegian Cruise Line. (2014, September 2). Corporate Overview. Retrieved July 27, 2017,
from Norwegian Cruise Line: www.ncl.com

Ship detective LLC. (2017). Shipdetective LLC. Retrieved July 27, 2017, from Shipdetective
LLC: http://www.shipdetective.com/

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