The Marketing Strategy of Carnival Cruises | Services Marketing Case Studies

Details

Case Code : CLSM004
Publication date : 2005
Subject : Services Marketing
Industry : Travel, tourism and hospitality
Length : 04 Pages
Price : Rs. 100

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Key words:

Carnival, Vacation Packages, 9/11 Attacks, Recession, Vacation Spending, Consumer Behavior, Price Conscious Customers, Acquisition Strategy, Brand Portfolio, 'Yachts Of Seabourn', 'Funships', Queen Mary 2, P&O Princess, Marketing Strategies, Micky Arison, Baby Boomers, Fuel Costs, Seasonality.

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

The caselet provides details on the business operations of Carnival, the world's leading cruise company. The 9/11 attacks and recession in the US economy hit the travel industry hard. The caselet discusses the measures taken by Carnival to tide over the crisis. This includes the new service offerings made by the company. Finally, the caselet outlines the opportunities and threats that are involved in Carnival's business operations.

Issues:

  » Opportunities and Challenges in US travel industry.
  » Marketing strategies of US cruising companies.
  » Perishability of services.

Introduction

Carnival the world's leading cruise company with 12 brands in its fold, registered revenues of US$ 6718mn for 2002-03 with a net profit of US$ 1194mn. It mainly operates in North America, Europe, and Australia. Carnival has a fleet of 78 ships, each with the capacity to accommodate 600 to 4300 customers.

Carnival offers various vacation packages ranging from 7 to 14 days. Some packages even extend up to 30 days. Carnival segmented its vacation packages into three categories -- contemporary, premium, and luxury -- based on the nature of the tours, the quality of customer service, and the itinerary of the vacation. The key destinations that Carnival covers include Alaska, the Caribbean, Europe, the Panama Canal, the Mexican Riviera, the South Pacific, South America, Hawaii, Asia, and Canada/New England...

Questions for Discussion:

1. SWOT analysis is the key task a service marketer has to perform before making any marketing planning strategy. In this context, do a SWOT analysis of Carnival cruises.

2. Discuss the steps Carnival took to overcome the crisis time following the 9/11 attacks and the recession in the US economy.