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An easy on cruise industry
Cruise industry analysis
Pestle of the cruise industry in the usa
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This financial analysis report examines two high profile competitors, Royal Caribbean International and Carnival Cruise Line, within the cruise industry in order to evaluate company performance and financial health. The industry started a major growth phase in the late 1960s and early 1970s achieving more than 2,100 percent growth. The early goal of the cruise industry was to develop a mass market since cruising was until then an activity for the elite. A way to achieve this was through economies of scale as larger ships were able to accommodate more customers as well as to create additional opportunities for onboard sources of revenue. The global growth rate of the cruise industry has been enduring and stable, at around 7% per year in spite of economic cycles of growth and recession. For instance, the financial crisis of 2008-2009 has not impacted the demand for cruises. This underlines that the industry has been so far fundamentally supply based; the ships are built and the customers are found to fill them through various marketing and discounting strategies. Cruise lines companies compete with other vacation alternatives, such as land-based resort hotels and sightseeing destinations for consumers’ leisure time. Demand for such activities is influenced by political and general economic conditions. Companies within the vacation market are dependent on consumer discretionary spending. The year 2012 was overall a very difficult for the cruise industry. Carnival International is still recovering from the effects of sinking of Costa Concordia off Italy in January 2012. On other hand, Royal Caribbean’s biggest challenge in 2012 was due to one-time impairment charges of nearly $385 million related to Spanish line Pullma... ... middle of paper ... ...t example of short-term worries providing an opportunity for long-term investors to make a great investment. Works Cited http://media.royalcaribbean.com/content/en_US/pdf/13034530_RCL_2012StwrdshpTwoPgrs_v4.pdf http://analysisreport.morningstar.com/stock/research?t=RCL&culture=en-US®ion=usa&cur=USD&productcode=MLE http://answers.businesslibrary.uflib.ufl.edu/a.php?qid=76331 http://markets.ft.com/research/Markets/Tearsheets/Forecasts?s=RCL:NYQ http://www.miamiherald.com/2013/03/15/3289232/carnival-lowers-financial-outlook.html http://www.ukessays.com/essays/tourism/sustainable-measure-for-royal-caribbean-tourism-essay.php http://beta.fool.com/ruperthargreav/2013/03/05/does-carnivals-current-ratio-present-problem/25676/ http://beta.fool.com/hoangquocanh/2013/03/20/-161/27482/ http://beta.fool.com/kwmatt82/2013/01/23/royal-caribbean-earnings-bigger-better/22325/
The purpose of this paper is to provide a summary of the article called “Can We Keep Our Promises?” by Robert D. Arnott, and to help better understand the three key risks facing each investor.
Long term viability and lowering the risk of any possible action – the solution must be advantageous in the long run with the least amount of risk involved instead of just achieving short term cost advantages.
By checking the percentage of different groups of travelers, we found out that business and leisure travelers are nearly equal to each other, but business travelers are always a little higher than leisure travelers in overall. Therefore, we were more aggressive with Miami in our price increases for the weekdays because most of our customers are not price sensitive. Based on a few results of ours, they also showed that increasing price will benefit us more in profits. For the weekends, the market size of leisure travelers is higher. In order to match with the inelastic demand, we adjusted our price based on the demand
Greece-based Celestyal Cruises prides itself on a unique ability to showcase “authenticity” in its home country, and in striving to do that exposes travelers not only to popular, bustling ports of call, but also to charming hilltop villages; sleepy, out of the way tavernas; and locally-run businesses that date back generations. With slightly smaller, cozier ships, Celestyal is able to access ports that larger cruise ships cannot – just one of the features that sets this cruise company apart, allowing it to bring travelers to many unexpected and off the beaten path destinations in the Greek islands.
The company’s current strategy is to attract more repeat cruisers and new cruisers of different segments by offering different types of packages. Such differences include choice of shorter or longer cruises, a low to moderate price for affordable cruises for middle class, and longer luxury cruises for affluent classes. As part of the company’s plan, Carnival is "going global" through a joint venture with Hyundai Merchant Marine to the Asia market.
The Provision Master is facing a challenge jobs because the Provision Master must analyze the previous trips experiences, the season, and the current customer base so that enable to come out a list which can satisfy the passengers’ need. The Provision Master may need to consider where the passengers from like US based, European based or Asian based because different region passengers consume different things. The Provision Master also has to consider the number of child passengers on the cruise because they consume less than adult passengers. When the list is finalized, it is transmitted to RCCL’s procurement department, which then does an extract in the system and sends purchase requisitions to suppliers via electronic data interchange (EDI), fax or e-mail.
Thanks to these factors, pricing becomes one of the primary uses with which hotels attract customers. However, due to customers’ independent nature, there influence over industry players is limited. In the high-end segment of hotels, price influence becomes even less as hotels find it easier to differentiate themselves from the competition and customers become less price sensitive coming to expect higher prices as a symbolism of superior quality and services. Lastly, corporate business and tour operators can exert more influence due to their large purchases but this affect is of a limited nature and does not extend across the whole
Pattullo report gives a first-hand account as to who controls each segment of the tourism industry; the tour operations, the large hotel chains, and the airline companies. The Caribbean’s economy depends on an industry that is mostly foreign-owned and controlled and the people who live there do not have an opportunity of owning or investing in it. In Pattullo’s report, it reveals that the large travel industry corporations are the ones who have most of the control. But those corporations are not located there. Her report exposes that the true benefiters of tourism in the Caribbean are foreign-owned investors and corporations.
William Sharpe, Gordon J. Alexander, Jeffrey W Bailey. Investments. Prentice Hall; 6 edition, October 20, 1998
A second strategy that has been rejected is one concerned with the consumer awareness of SGC. Currently, SGC is only advertising to travel agencies. Coupled with segmentation, SGC’s current advertising strategy has hurt SGC in the sense that consumer awareness is considerably low. Only a small portion of the population even knows that Sea Goddess exists. SGC is only targeting those who travel frequently. They may want to target the portion of the population that wants to travel, but is unsure of where to go or what to do. In order for SGC to reach the consumer, new efforts must be made in the advertising plan. Mere travel agency recommendations are not going to be enough to keep SGC alive in the marketplace. Other vehicles are going to be necessary to spread SGC’s message about the luxuries and benefits of this extraordinary cruise. At the present time, only a small number of all travel agencies have the sufficient knowledge that it takes to make an informative sell to the consumer. It may be profitable for SGC to employ some hi...
The celebration of the Carnival first began in Italy before the first day of the Lent season and was later brought to Brazil by Catholic Portuguese settlers in the 18th century. The origin of Carnivals may not be Brazilian, yet even today Brazil most embodies the Carnival celebrations and spirit. There are many small festivals held throughout the year, but few claim to compare to the annual “Carnaval” in Rio de Janeiro. The celebration is only a small part of the year, but its influence on the community remains for the whole year. Carnaval is considered a time when socio-economic status disappears and communities come together. However, Carnaval also strongly impacts Brazil by providing space for individuality and celebrating individual characteristics. Indeed, Carnaval has become an opportunity for small revolts and protests by the people usually against the government. Brazilians who aren’t satisfied with social standards or laws will speak up and use Carnaval as their platform for protest. The celebration creates an atmosphere of trust and community in which people feel comfortable voicing their opinions. It has been used for feminist movements, gay right movements, as well as others. Not only is it beneficial to marginalized groups who find the opportunity to voice their frustration, Carnaval is used as an opportunity to forget and move past the brutality of life. Whether it’s death or unemployment, Carnaval activities focus on the positive aspects of life and don’t tend to dwell on the past. Brazil has become one of the happiest emerging nations because of the Carnaval. Although Carnaval appears to consist of mainly outrageous parties, it represents much more than that. Carnaval provides a public forum to ce...
In 2013-14 Tauranga had 83 voyage calls, 25 vessels entering with 83 port days in total. They also had 100 unique passengers and 149,000 passenger port days. Tauranga has established itself as a go-to destination for cruise passengers, with its natural beauty and friendly locals it is not hard to see why. Over the years, Tauranga’s cruise tourism has changed from the 2013-14 statistics, the amount of voyage calls this year has gone down but the amount of unique passengers has gone up to 160,100.
... stock fluctuations. If a financial advisor cannot be afforded, it would have been in the best interest of the investor to read more on the stock market news regarding what stocks were predicted to have a profitable growth. The investor could have stayed with energy and renewables, just cold have chosen different corporations then the ones chosen.
...ponents. To run smoothly the parts have to basically work together like a well-oiled machine. There are several factors that can drastically change the way the market goes. The state of the world basically drives the tourism industry, as does the pretty bells and whistles. What the media has to say can drive the market as well, and when disaster strikes the numbers drop. I know that the future is unpredictable, but additional safety training and procedures are essential to all types of businesses even tourism. The images that had the captain leaving his ship and the passengers and crew to fend for themselves was devastating, and the most recent image of the cruise ship with bags of human waste…painted a disgusting and lasting negative image in the minds of views. I could imagine many ticket holders calling to cancel cruises at the sight of that, thanks to the media.
Using the Modern Portfolio Theory, overtime risk assets will provide a higher expected rate of return, as compensation to the investors for accepting a high risk. The high risk will eventually lower collecting asset classes to the portfolio, thus reducing the volatile risk, and increasing the expected rates of return. Furthermore the purpose of this theory is to develop the most optimal investments portfolio which would yield the highest rate of return while ascertaining the risk for the individual or corporate investor.