Presented By: Group 4

Ayushi Godha (141113)

Jayant Kushwaha (141119)
Nikhat Raj (141130)
Ravi Shankar Rai (141139)
Smit Patel (141155)

CARNIVAL
CRUISE LINES

The Cruise Industry

Fastest growing category in leisure-travel
industry projected to serve 10 million
customers in 2004 compared to only 0.5
million customers in 1970.
A lot of potential customers can be served
as only 16% of North American market had
ever cruised.

Industry Evolution
In mid 1960s, shifted to pleasure cruising from
transportation.
New bigger ships were introduced with capacity
of 1800 to 3800 passengers along with a crew
strength of 700 to 1200.
The idea was to create a floating resort with all
amenities like exotic dining options, casinos &
bars, gyms & spas etc.
70 brands now serving the N. American market
since 1960s.
Carnival Corporation, Royal Carribean
International Ltd & Star Cruise were leading
players with top 10 holding 95% market.
Segments in cruise industry:

Carnival Cruise Lines

Ted Arison started carnival cruise lines in 1972.
Main idea was to provide a fun-filled vacation
option.
With 12 cruiselines and 75 ships, it covered
each of the four segments.
Carried 60000 passengers compared to
Seabourns 21000 passenger/year.
Allowed customers to customize their Fun
Ride in terms of activities and cruise duration.

The Carnival Customer

36 %- <=35 years, 40 %- 35-55 years, 24 %>=55 years
All types of customers- Families, Singles,
Honeymooners & Multigenerational families
Average income was $ 65000
55 % were married
Promotional tools- National TV, Cable Advertising,
Newspapers, Direct Marketing, Travel Agents

Distributing the Carnival

Product

Two main Channels- Travel Agents & Direct Marketing

Travel Agents
Vital but expensive sales force
Commission of 10 %
Effect on Profit & Loss statement
Direct Marketing
Inbound Avenues - Included 1800-Carnival and
Carnival.com on which only few customers booked
Outbound Avenues - A separate division which had
grown to more than 200 Personal Vacation Planners
(PVPs) and had proven effective sales

Delivering the Carnival

Experience

The Carnival Experience begins even before the cruise

sets sail
Customers book their reservation either through
agents or directly online
80-90% guests complete their registration online and
the rest do it during embarkation
Pre-cruise online sign-up for excursions and spa
appointments helped the management to apply
revenue management to increase profitability
The Sail and Sign card given to guests during
embarkation has evolved as a one stop shop for all onboard transactions

Challenges during
Embarkation

Embarkation and debarkation was a chaotic

process. VIP guests were escorted to a private
area for embarkation
Cleaning the rooms as soon as the guests left,
loading tons of luggage and food and directing to
proper storage facilities was a challenge
Unannounced inspections from the health and
safety department provided another challenge
Delivering a higher quality and a higher variety
experience to guests was a challenge and a
priority

Channels of Revenue
The ships shops sold everything from souvenir

trinkets to fine jewelry

Duty free shops sold discounted alcohol
Sommeliers sold a huge selection of wines at
dinner
The spa sold a range of treatments
Art auctions, wine tasting, Internet cafes, video
arcades, golf simulators, alternative bistro dining,
casinos, shore excursions, bars, photo gallery etc.

Carnivals Information
Systems
Components:
Information Systems(IS) group 275 full-time employees
shore plus 45 shipboard IS managers in charge of
enabling technology on board.
2 key guest management applications PMS & POS
Property Management Systems(PMS)
Point of sales(POS)- custom made application called FSS
Fun Sales system (FSS) Software enabling to record
sales data in outlets guests use to make purchase i.e., at
internet caf, spa, casino
Sails & sign cards mode of payment on ship

Cont.
On board billing done using FSS.
On arriving on port, data downloaded by operations
accounting personnel from PMS and prepare financial
statement in order to close the voyage.
This data has picture of household-level on board
spending.
Big travel distributors sold cruise product online.
Carnival had sophisticated revenue management
group that leveraged daily inventory, pricing and
booking data to optimally price each cruise.
Carnival used data to understand travel agents and to
create incentives and rewards for the sales force.
Fulfillment houses went bankrupt in 2001, Carnival
purchased 10 million household data from them.

The Potential Value of

The entire ship must not be for only one type of people/segment
Customer
but must has presence
of different typesData
of people
Experiment were done with loyalty program which will bring
following benefits:
1) After buying the Carnival Vocation Club people (customers) will
not cruise with competitors
2) It had been found that people spend more on the board
A second new initiative was recognition card, based on the color
of the card (issued to customers visit on cruise) the people
(customer) were treated
Their was Gold Sail & Sign card for repeat visitors (so employees
can differentiate these customers from first timer)
Compensating the bad experience with certain freebies/ goodies
so that the customer dont fill bad and can be retained in long run
Dial for Dollars, to encourage people to complain onboard
instead of doing bad mouth outside

TheFuture
The company was going to introduced 21st ship in the fleet
Leveraging brands market leadership with high margin was still one of
the problem for the company
How to leverage the substantial access to customer data to better
understanding of the customer for getting profit from cruise guest

Thank You