Question

Carnival Cruise/ travel industry analysis (stakeholder analysis, competitor’s analysis, supply chain analysis, market analysis, etc)

Answer 1

The Carnival Corporation is the world's largest and most profitable cruise ship. Their corporate headquarters are headquartered in Miami, Florida with more than 91,000 staff and headquarters worldwide. It all started in 1972 with Ted Arison who had a dream for building the world's biggest cruise ship. Carnival gradually started to develop and "The World's Most Famous Cruise Ship" was awarded over time. In 1987, the management team decided to take advantage of its well-known popularity and joined the New York Stock Exchange as a CCL publicly.

Carnival Corporation had begun to take shape, but in 2003 they merged effectively with Princess Cruises forming a global power house. Additionally, Carnival purchased P&O cruises, Ibero cruises and AIDA Cruises lines. Carnival had been the world's largest cruise company, from the US to Europe. Although each line had its own differentiation and separate operations, Carnival operated many cruise line operators. In 1972 the owner and operator of all the Carnival had a dream for Ted Arison. Ted's story begins when he stole a small ship named the Mardi Gras and converted it into a luxury ocean liner.

Despite the tourism industry's economic downturns; Carnival has continuously evolved and extended its cruise line brand portfolio. Carnival Corporation has 10 cruise lines and 100 operating vessels. Carnival has been able to produce nine per cent sales in its cruise line portfolio and deliver new ships per year. Carnival growth strategy has allowed the company to raise sales by four percent and retain the largest and most profitable travel business worldwide.

Carnival strategies is to compete by providing everybody can have the most accessible all inclusive entertainment travel experience. Carnival Cruise Lines has a fleet of 24 ships. Carnival buys old ships and they are being refurbished with modern upgrades. By doing so, Carnival is saving millions of dollars and keeping prices down. Another tactic carnival does is buy huge quantities of fuel when oil prices are small. Marketing strategy for Carnival is to mark their name as a fun ship; people are drawn to inexpensive travel that has loads of fun.

Governments and political influences in the cruise sector work hand in hand. Every government country is in contact with the cruise ship operators from port facilitation to security & rescue emergencies. Pirates are a constant problem depending on the region. Cruise ship operators are dependent on local governments to defend themselves from these attacks. Government plays an important role when it comes to safety & protection.

The cruise line industry is rising at an 8 per cent growth rate and today more people than ever before are sailing. There are many economic factors involved, such as the economic positions of the clientele, demand growth, currency levels while operating abroad and inflation plays a role. Under management and operating standards, the cruise operators will be affected. If the fuel price continues to increase, then this will impact the company's operating costs. If interest rates increase this will impact the company's revenues. Economic aspect plays a major part in the company's survival.