Transcript Cruise Ships

CRUISE BUSINESS
GROUP 3
Group members
Yao Ju
M99Y0206
James
M99Z0216
Ninh
M997Z211
Melva
M997Z227
Nancy
M997Z228
Allison
M99Y0105
SELLING AND MARKETING
OF CRUISE
History of cruise ship
- Cruise ships have developed since the last 150 years
- At first, ships were made for discovery, post,
transportation
- 1801: The first ship using steam started to work
- 1960s: Cruise ship revolution began
- 1980s: Cruise ship industry got stronger & stronger
 1990s:
+The first ships with well equipped facilities,
recreations, etc started to work
+Global cruise industry averaged an 8.5 percent
annual growth in bookings
 After 2002: cruise industry growth slowed a little
bit due to concerns about terrorism, high energy
costs, increased population harbors, etc.
Areas of Coverage
 Type of Cruise in the Market
 Thematic Cruises
 Different Cruise Brands
 Managing Yield on Cruise
 Pricing & Promotions
 Understanding
What’s Cruising
 Manage yield with
promotion
 Promotional Partners
 Promotional Strategies
 Marketing Communications
 Distribution Channel
 Marketing with
promotion
 Understanding
Booking Network
What is Cruising ?
Apart from the Sea Experience, you sell various facets
like:
 Size (Facilities)
 Floating Resort (Balcony class)
 Entertainment (Broadway Show)
 Appeal (Lifestyle, Prestige, Fun)
 Different Types of Cruises
Cruise Ships – Not just for Grandma and
Grandpa anymore
What’s the reason?
 Some fortuitous events beyond the companies’
control (such as the influence of Titanic movie)
 Better marketing programs in Cruise industry
=> satisfied all the market segment
Let’s make it clear by focusing on Marketing
program!
Understanding
Branding
Positioning
Correct
Marketing
Strategy
Types of Cruises in the Market
 Destination Cruise
 Special or Theme Cruise (Singles Cruise, Wedding,
Party, Spa & Wellness, Kids…)
 Cruise Variatations / Product Extension (Fly Cruise,
Coach Cruise, Train Cruise)
 Budget Cruise (Easy Cruise)
 Other
A Look at some of the theme Cruise
 Gourmet Cruise
 Golf Cruise
 Romance Cruise
 Heritage, Culture & Gourmet
 Kids Cruise
 HoneyMoon Cruise
Emeraude
Managing Yield on Cruise
Yield Management is a from of Revenue Management for
Increment Revenue. It can be obtained from:
 Different types of Cabin
 Different promotions across/ country
 Different promotions within one country
 Onboard expenses
 Miscellaneous purchase onboard like Spa, Casino,
Photo Gallery, Shopping…
Pricing & Promotions
 Early Bird Special
 Seasonal (Peak, low season)
 Tactical Offers
 Incremental Offers (by 3 get 5)
 Loyalty Program Special
 Exclusive Memberships’ Special
 Cabin Upgrade
 Last minute / Standby Offers
Promotional Partner
 Travel agents
 Corporate/ Incentive Houses
 National Tourism Organizations
 Port Authorities
 Banks, Spas, Telecoms ect.
 Clubs and Associations
 Airlines and Travel Partners
 Regular Customers
Promotional Strategies
 Pricing/ Tactical Strategies
 Theming Strategies
 Collaboration Strategies
 New product launch
 New product Extension
 Sponsorship
MARKETING COMMUNICATIONS
An Advertising Strategy is a message
that brings forth the product or
brand’s value proposition.
Slogan & Brochure
Once you’ve Cruised you’ll never
want it to end
Furama
“Vietnam’s truly beach resort”
“Summer in style 5 star Plus”
“ Best beach break on the best beach of the world”
Brochure
MARKETING COMMUNICATIONS
 Media Advertising
 Direct Advertising
 Outdoor Advertising
 In-Store Advertising
 E- Advertising
 Event Advertising
 Relationship Advertising/ Personal Selling
 Trade Advertising
Advertisement
Advertising create awareness of a product and bring
forth the target audience to buy the product.
Allows the company to convey the features & unique
selling propositions of the product.
Advertisement
Branding Advertisement not only feature the product but
also avail concepts like lifestyle, prestige.
Tactical Advertisement has a strategy and tend to focus on
price
Thematic Advertisement focus on a theme or a particular
topic, area.
Different types of Advertisement
 Direct Advertisement
 GSA Advertisement
 PSA Advertisement
 Co-operation Advertisement
Cruise Distribution Channels
 Travel Agents (GSA, PSA)
 Direct Booking
 Online/Website
 Global Distribution System (Galieo, Sabre, Abacus,
Amadeus)
 Call centre
 Promotional Partners
Distribution Partner: GSA
 GSA is General Sales Agent
 GSA is similar to a Sales Representative that assist the
company in the areas of sales or even marketing of the
product it represents.
 The Selection is based on reasons like the GSA’s
business & booking network, the potential to expand
and grow the market for the product.
Distribution Partner: GSA
 The GSA will receive commission,
incentive, rebates and sometimes
consultancy fee for the sales and
marketing activities it has done on behalf
for the product and the company
Cruise Lines
GSA
Agent A
Agent B
Sub Agent I
Sub Agent II
Distribution Partner: PSA
 PSA means Preferred Sales Agent
 PSA are exclusive agents appointed by the
company to market the product with special
commission, incentive, rebates on behalf for
the sales and marketing activities done for
the product.
 Usually they form a consortium of agents or
a grouping and will receive guidance and
instructions from the product companies on
sales and promotion strategies
Cruise Lines
Preferred Agent A
Preferred Agent C
Preferred Agent B
Future Trends
Uncertain & varied outlook
 Reduced price had led to a drop in standard
 Discounting owing to competition had led to more
innovative products,
 More innovative ways of making onboard revenue
 More added facilities like ice skating rink, roller
coaster, bungee jumping, bowling alley, virtual
reality games
Future Trends
More potential Markets
 More multi-generations, singles going onboard
 Kids will be going for free at times
 More adventure and expedition cruises for emerging
markets
New Traveling Concepts
 More theme cruises
 More international spas onboard cruise
 More “homeland” Cruising in US
Future Trends
Better Entertainment
 Production shows are costing more from US$500.000
to 1 million with performers’pay, costume, cleaning
and repair, backdrops, lightings, music & orchestra,
royalties.
Future challenges of cruise ship
 Terrorist attacks & political unrest around the world
may dispute industry revenues again
 Over-capacity: The substantial growth & profits cruise
lines during the 1990s spurred the investors to build
more and bigger ships at an increasing rate
 How to find a way to increase the growth in passenger
booking to fill the growing capacity & recoup the huge
investment in new ships.
 High competitiveness: The cruise ship industry is
highly concentrated & dominated by large companies
(Carnival, Royal Caribbean, North America)
Evolution of New Cruise concepts
 Compete with Size, Facilities
 Larger Cabins, Verandas
 More Dining Options
 New Concepts like spa, golf
 More entertainment, sports
 Innovative Enrichment Program
 Exciting Shore Excursion
 Freestyle Cruising
Thank you!