Question 1
Global forces
- development of transocean air service : pros and cons
? took business passengers from liners
- competitive change: advent of jet travel 60's
? growing mass market for budget minded international travellers
immune of economic recessions: during that, people just took shorter cruises, with nearby embarkation ports
- all inclusive prices / day vs travels to big cities ? bargain
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- Question 2
- Cruise line industry: part of the larger global tourist industry= 10% of global spending
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New target : economic middle class in addition to the rich = groups with income but not a rich customer segment
Shipping lines "getting there is half the fun"
Conversion more shipboard space to low priced accommodations
Retired the giant luxury liners
Globalization : the shipping company can be registered as a national legal entity (ex: Liberian/Mongolian), and it can take advantage of the lower taxes and less stringent rules on its employment practices that those countries offer
No income taxes, but port fees wherever the ship docks
- This has come about because there are more women in the workplace, which gives households more disposable income.
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Question 2 Carnival
Cruises to every continent
Fun ship concept = transformation of liners' travel
Opportunity : liners retired ? buy used ships at cheap price
- growing affluence = more people can afford vacation
fun ship concept : take group tours and visit theme parks+las vegas
- operates in different areas of the world : diversification and product differentiation
- different targets / segments
- entire cruise line is international
- nationality of the companies
- "flags ...