The Cruise Line Industry

854 Words2 Pages

The Two forces currently affecting the cruise line industry are the economic and political forces. These two forces represent threats to the company and the industry because in 2009 the economy of the use was in a downturn and sales went down for that year. The global recession significantly impacted the financial performance of travel companies worldwide. Carnival suffered significant loss. Reduced travel demand as a consequence of the recessionary economy by 13%. As the consumer’s discretionary spending capacity declines, the demand for Carnival’s cruise services would also decline affecting the revenue growth as well.
The other threat was the political issues in Mexico and Africa were uncertain and problem some as this two places had very important ports for the cruise line industry. The cruise line did not feel safe going to this ports. In addition, with respect to the economic the cruises benefits from their guest.
The two opportunities were the social culture, and technological as he cruise line because of the down economy in the US they turn to Europe for the 2009 year in which they gain market share, and actually help the company turn a profit that year as the company shift the marketing to the European culture.
The other opportunity is the technological advances the company was upgrading their ships and more importantly were working on building new ones that will be ready to set sail in 2014. In addition, the technology has increased the cruise travel. Gives the technology to enhance the activities within the cruise.

Carnival Cruise Lines was the most popular and most profitable cruise line in the world. In regards of threat of new entrants, it is very difficult to enter in the cruise industry. The competition ne...

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...ns covering certain employee categories, and union relations were considered to be generally good. The American Maritime union had cited Carnival (and other cruise operators) several times for exploitation of its crews.
In order to comply with government regulations, internationally, all ships and operations conformed to the SOLAS (Safety of Life at Sea) regulations adopted by most seafaring nations.
In U.S. waters and ports, the ships had to comply with U.S. Coast Guard and U.S. Public Health regulations, the Maritime Transportation Security Act, International Ship and Port Facility Security Code, U.S. Oil Pollution Act of 1990, U.S. Maritime Commission, local port authorities, local and federal law enforcement agencies, and all laws pertaining to the hiring of foreign workers. Under he Center for Disease Control all the cruises are inspected for health issues.

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