![\"cruise-woman_3170504b\"](\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/cruise-woman_3170504b-300x187.jpg\")
<\/a><\/p>\nCarnival has done an excellent job of cruising to a diverse set of ports to satisfy customer demands. \u00a0For example, Princess Cruises sails to Asia, \u00a0Africa, North & South America, Australia, the Mediterranean, and the Caribbean. \u00a0Not only does Carnival Corporation capture a large and diverse set of market needs, this\u00a0operational strategy is beneficial because\u00a0of the seasonality of certain destinations. \u00a0The Mediterranean\/Europe is more desirable in the summer months and the Caribbean is more desirable in the winter months. \u00a0This model allows Carnival Corporation to provide vacations where there is the most demand year round. \u00a0By utilizing a model that allows flexibility in the vacations they provide (what part of the world they sail in and the exact ports of call), they can maximize the price they charge for a ticket.<\/p>\n
Similarly, Carnival has a dynamic pricing policy that encourages customers to use their ships year round. \u00a0Ticket prices are highest around holiday times and much lower during non-peak demand. \u00a0Ticket prices might be hundreds of dollars more for traveling during Christmas week than during the second week in January. \u00a0This strategy ensures that the maximum number of passengers are on each ship for each voyage.<\/p>\n
Carnival does an excellent job of minimizing costs. \u00a0While their headquarters are in Miami, the company is incorporated in Panama, and each of their cruise ships are registered in countries outside of the US. \u00a0These two decisions have a number of tax and wage benefits. \u00a0Because the ships aren’t registered in the US, they do not need to comply with minimum wage laws and are able to hire unskilled labor for certain jobs on board the ship. \u00a0This helps the company maintain profitability and allows them to provide great value to their customers.<\/p>\n
By bundling a customer’s accommodation and food together, Carnival is able to provide customers with great value and a fantastic experience. \u00a0By booking a cruise, customers\u00a0have the knowledge that they are booking a vacation that is semi all inclusive. \u00a0There is always a wide variety of food options for different tastes and you are able to expect a certain level of quality. \u00a0The cruise lines have extensive data on how much food to order for their preset menus. \u00a0This allows for highly efficient ordering. \u00a0Additionally, Carnival can capture additional revenue from alcohol sales.<\/p>\n
Operationally, Carnival has to meet the needs of a small, floating city. \u00a0Feeding thousands of passengers a day, ensuring their safety, and providing entertainment is no easy task. \u00a0Perhaps no job is more impressive than turning the ship over between cruises. \u00a0When a cruise gets to the port of debarkation, all the customers must get off the ship. \u00a0Several hours later, a new set of customers gets on the ship and the week’s activities repeat itself. \u00a0All new food must be brought on board and the ship must be fueled and cleaned. \u00a0By having turning over the ship in the same day, they are able to maximize\u00a0the number of trips\u00a0that each boat takes in a given year.<\/p>\n
No other cruise company has the scale that Carnival Corporation does. \u00a0With a 47% market share, they are by far the largest player in the cruise industry. \u00a0Carnival utilizes a number of tactics to profitably take passengers on cruises. \u00a0 Segmenting the industry, up selling customers, utilizing dynamic pricing, and effectively executing on key operations are a few ways that they ensure their business model works. \u00a0They would not be able to be dominant if their operational and business models didn’t align well.<\/p>\n
—<\/p>\n
References<\/p>\n
http:\/\/qz.com\/63678\/one-of-the-secrets-to-carnival-cruises-unsinkable-business-model-free-coast-guard-rescues\/<\/p>\n
http:\/\/phx.corporate-ir.net\/phoenix.zhtml?c=140690&p=irol-index<\/p>\n
www.princess.com<\/p>\n
http:\/\/www.usatoday.com\/story\/travel\/cruises\/2012\/12\/11\/why-are-cruise-ships-registered-in-foreign-countries\/1760759\/<\/p>\n
http:\/\/marketrealist.com\/2015\/01\/carnival-boasts-largest-market-share-cruise-passengers\/<\/p>\n","protected":false},"excerpt":{"rendered":"
Big profits on the high seas.<\/p>\n","protected":false},"author":1304,"featured_media":5377,"comment_status":"open","ping_status":"closed","template":"","categories":[868,862],"class_list":["post-3607","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-cruises","category-hbs"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"\n
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<\/a><\/p>\n