Carnival Cruise Lines Case

amusement park Cruise Lines case Questions 1. What ball-shaped forces make up contributed to the growth of the sail industriousness? Two major(ip) factors that have contributed to the growth of the cruise industry are the change in the rivalrous environment brought ab by by the advent of transoceanic airmanship draw in good and increasing discretionary incomes. As demand for liner travel declined in response to the suppuration of less expensive and much faster air service, raptus lines were forced to respond to the new market conditions by ontogeny sea travel for the middle class, i. . , cruises. In extension, all-inclusive prices, a enormous range of on-board and on-shore offerings, and the additional safety and security measures interpretd by the cruise industry have proven very attractive in light of juvenile political and socio-economic events. 2. What specific steps have genus Circus Cruise Lines interpreted to benefit from global societal changes? genus Circus has responded to global environmental changes in a variety of ways. Because a ship is highly vulnerable to terrorist acts, Carnival has instituted very strict security measures.It has excessively implemented strict health and safety measures. Carnival has dealt with economic recessions by offering shorter cruises that embark impending to home and with times of economic prosperity by offering long-lived cruises that incorporate more exotic destinations. It minimizes staffing costs by sourcing employees on a global basis. In addition, across its various lines, Carnival offers a wide-eyed variety of themes, classes of service, and destinations. 3. What are some of the differences by country that affect the operations of cruise lines?Political/legal, geographic, economic, and sociocultural differences all affect the operations of cruise lines, which are truly international in nature. For example, nigh shipping lines recognise to flag their vessels in countries such as Liberia, Mongolia, or Panama because of the bring down taxes and less stringent employment practices required by the laws of those countries. Relatively hardly a(prenominal) countries (Finland, France, Germ each, Italy, Japan, and South Korea, for example) have shipyards capable of building cruise ships.Consequently, governments (e. g. , Italy) may accept to subsidize the ship-building industry in order to secure contracts for their domestic firms. The booming location of the Caribbean/Bahamas and the Hawaiian Islands makes them busy destinations year round, while Alaska is strictly a seasonal favorite. Because of their professional skills and fluency in English, Philippine workers comprise tight a third of the seamen worldwide. Yet many other crew members also come from Eastern Europe, Vietnam, and China.Finally, in addition to the fact that many ships are intentional to accommodate the economic realities of the mass market, others are specifically designed to appeal to the cultural p references of their clientele (e. g. , Costa, based in Italy, offers a typical Italian flavor). 4. Although most cruise line passengers are from the United States, the add up number of vacation days taken by U. S. residents is lower than in most other high-income countries. For instance, the number is 13 days per year in the United States as compared to 42 days in Italy, 37 in France, 35 in Germany, and 25 in Japan.How might the cruise lines growth sales to nation outside the United States? Given that the majority of people in the tar perk uped income segment ($20,000-$60,000 per year) have yet to take a cruise, the major task confronting the cruise line industry is one of marketing. In addition to promoting the many appealing features of its various cruises and lines throughout the create world and selected ontogeny countries, Carnival could partner with foreign airlines and travel agents in order to get foreign vacationers to its many ports of embarkation. . What threats exi st for the future performance of the cruise line industry and specifically Carnival Cruise Lines? If you were in charge of Carnival Cruise Lines, how would you (a) try to prevent these threats from becoming a reality, and (b) deal with them if they do become a reality? While the potential market for Carnival seems very attractive, port capacity could well become an issue. The deep pissing and the massive facilities required to dock a liner in any port are limited.In addition, there are passionate cries from environmentalists regarding the damage (pollution of the seas, disorientation of sea mammals caused by the noise of the propellers, etc. ) being caused by liners both in port and at sea. Should there be a major global economic disaster or a global health pandemic, the cruise line industry will surely suffer. To proactively deal with the speculation of a downturn, Carnival should invest heavily in research and development in order to continually minimize the environmental impac t of its ships and their operation. It essential also carefully develop its global cruise structure n a way that complements existing capacityor else work with ports to provide additional capacity. If Carnival finds that it must react to a downturn, it should always hazard in terms of all of its stakeholders, not just its stockholders. Of course, it will compliments to minimize any damage to its operations and profits. However, given the immense sizing of the firm, it may also be possible for Carnival to reach out to others (such as providing liners to be used as housing for workers, as in the case of Hurricane Katrina). Carnival will be better served by a long-term rather than a short-term orientation. 6.Discuss the ethics of cruise lines regarding the escape of almost all taxes while simultaneously buying ships built with political subsidies. This is definitely a complex issue. While cruise lines avoid most taxes by flying flags of whatchamacallit, they argue that they must do so for hawkish (cost-savings) reasonsand that other governments could choose to offer the same benefits. Their supporters also argue that the alienated taxes are at least to some extent indirectly limb by port fees and passenger spending, and that the taxes realized by less developed countries are important contributions to their economies.However, others argue that the less restrictive staffing, safety, and operating requirements associated with flags of convenience are intolerable. They argue that lesser standards pose both safety and environmental hazards and that in the long-run, the costs to society are high. They feel strongly that if shipping lines receive government subsidies on the one hand, it is immoral and should be culpable for them to avoid paying taxes on the other.