Description
This is a prsentation explain carnival cruise lines and it highlights luxury liner industry, customer base, touch points, experience, pricing, information system and CRM initiatives
CARNIVAL CRUISE LINES
CARNIVAL CRUISE LINES
? Launched in 1972 by Ted Arison ? Portfolio of 12 cruise lines and 75 ships covering four North American market segments as well as Europe ? Cruise lines is fastest growing leisure-travel industry ? Major brands are Carnival Corporation, Royal Caribbean international, Star Cruises and others controlled nearly 95% of the market ? The main value proposition of Carnival Cruise Lines was the low price leadership ? Vision: Provide Quality vacations that exceed the expectations of our guests’-that’s a recipe for success
CARNIVAL CRUISE LINES
? Clear Vision about the industry and commitment to brand essence ? Product design ( Fun Ship) based on customer expectations and needs ? VIP (Vacation Interchange Privileges program) ? Frugal , efficient and disciplined in investing even small amount per bed
? Offered Product variety through cruise duration
INDUSTRY EVOLUTION
?Fastest growing category of the North American leisure travel industry ? Target Segment: North American market in 4 segments (contemporary, premium, destination and luxury) ? Challenge: Convert land vacationers to cruisers
? Post 1960s- Pleasure Cruising
INDUSTRY EVOLUTION
? Array of activities on cruise (music, sports, spas, bars, internet café, fitness etc.) ? Major players: Carnival Corporation, Royal Caribbean, Star Cruises, Cunard lines ? Only 16% of North American Market had ever cruised leaving a large untapped base of potential customers.
CARNIVAL CUSTOMERS
? Products were popular with families, singles, honeymooners, and multigenerational families ? Pursued this broad market through promotional channels , including national
TV and cable TV, newspapers, direct marketing to the past guest database and
through travel agents ? Positioned itself as Everyman Fun Ships and no-frills party cruise line to attract people of all age group and income ? Customer profile similar with Industry’s standards but with notable differences
? Customer loyalty was low even though guest satisfaction rating was 98%
CUSTOMER PROFILES
Carnival Industry ? Average age was 50 years ? Household Income was about $ 99,000 ? 78% customers were married ? Popular with old and affluent ? One third guests were first timer
? Average age was 46 years with wide age difference ? Household Income was about $ 65,000 ? Carried fewer married passenger (55%) ? Popular with people of all age group ? Half of the guests were first timer
CUSTOMER TOUCH POINTS
Direct Marketing Customer Travel Agent Inbound(teleservices and website) Outbound(telemarketing) Internet Agents, Mom & Pop, @home agents
CUSTOMER TOUCH POINTS
Inbound
? Facilitated direct interaction with the customers.
Outbound
? Focus on last minute booking ? Risk of conflict with channel partners (travel agents)
? Qualified leads , more accurate &
extensive customer information ? Complexity in online booking ? Customer preferred live
interactions (travel agents)
CARNIVAL EXPERIENCE
? Experience began long before the ship set to sail as guests got information about cruise through web, signed up excursions online and help in customization ? Data about Guests were recorded through travel agents, online registration process and during embarkation ? The Sail and Sign card ? Offered services like spa, discounted alcohol, photo gallery and so on to increase cruise experience and net ancillary revenue ? Casinos, shore excursions, bars were some of the biggest on board revenue center.
CRUISE PRICING
? Cruise price includes: all meals and entertainment; casino; nightclubs; theatrical shows; movies; parties; a discotheque; health club; and swimming pools ? Cruises generally substantially booked several months in advance ? Other revenues:
• • • • • • • casino liquor and gift shop sales shore tours photography spa services promotional advertising by port of call merchants pre- and post-cruise land packages
Average cruiser spent an additional $30 to $50 per day on board
CARNIVAL INFO SYSTEM
? Its IS group involved 275 full-time employees shore side and 45 shipboard managers ? These custom developed applications which involved 16 servers and 120-150 Clients (PC+POS Terminal) per ship. ? On-board infrastructure shared Oracle Database ? It involved two key guest management applications:
• Property Management System (PMS) • Point of Sale (POS) / Fun Sales system (FSS)
? PMS was used to:
• Download guest data from on-board systems to shore side network to “close the voyage” • Produce voyage reports at revenue center and processing payments to external vendors
CARNIVAL INFO SYSTEM
? POS or Fun Sales System FSS:
• Offered a graphical user interface for allowing use of Sail & Sign cards for payment mode and post the charges in Guests Folio • Allowed employees to choose items to be charged
? Purchased its own customers’ list in 2001 of 20 million individual records or 10 million households ? Used custom-developed forecasting & pricing models, and included on-board spending in their new “revenue analytics” project ? It maintained a group of business analysts and an IS steering committee for developing, evaluating and approving business cases for new applications based on their ROI
CARNIVAL INFO SYSTEM
? IS group accumulated two year voyage’s guests’ transactional and behavioral data for enabling analysis by Carnival for:
• Understanding the performance of travel agents • Manage relationship with channels efficiently (incentives & rewards)
? Biggest Challenges faced here were:
• Wide variation in the sophistication of channel partners • Traditional Low IT spending in the industry
? Carnival did not strive to be a leader at innovating IT applications but was careful to be at par with competitors ? Maintained a conservative stance towards CRM and only devoted a fraction of a full time equivalent employee to customer data analysis
Dimension
Strategy
Competitive Advantage/ Objective
Locks in future purchases
Carnival Vacation Club
Recognition Cards
Differentiated services To fill ships Complaint handling and its resolution on the spot wherever possible
Customer retention (Repeat customers)
Direct marketing (PVPs) Consumer Response System
Customer satisfaction
Pricing
Revenue management
Higher profits
CRM INITIATIVES
? Use of travel-trade portal ? New online registration process for cruise boarding passes (Fun Pass) ? The Modern sail & sign card initiative ? Carnival’s Skippers Club( VIP’s & Buyers of high end staterooms and suites) ? Loyalty Programs Recognition cards
GAPS IN CRM ACTIVITIES
? Carnival didn’t had a single program primarily focussed to repeat customers (guests) ? The initiatives undertaken never targeted the preferences of the repeat customers, the onboard buying pattern and the travel pattern ? The customers were not being segmented on the basis of profitability ? There was a customer response system for handling and resolving complaints on the spot wherever possible. But the data from such system was not archived earlier which on analysis could have been helpful. ? Revenue management system which was in place to generate better margins. But the customer information was inadequate as the travel agent didn’t transform all the information correctly.
RECOMMENDATIONS
? Increase the direct consumer contact points ? Developing the loyalty programs without comparing with industry needs ? Special and adequate follow up by all centre executives for the past guests ? Building up the IT infrastructure to improve and own consumer
database
RECOMMENDATIONS
? Developing a process to record the feedback of consumers and working upon it ? Concentrate on developing repeat customers by building a state-of-the-art customer relationship management (CRM) system and by offering its current customers incentives to refer friends and family members ? Enriching the website
? Building relationships with consumers
greetings on occasions (birthdays, anniversaries etc) special rebates for new offerings
BENEFITS
? As Carnival operates in the contemporary segment and is the market leader in terms of capacity and market share, it has the potential of attracting a large chunk of the first timers. ? CRM initiative will help to segment the profiles of customers to understand their
preferences. An analysis of the same would help Carnival in revenue management.
? It will help in judging the profitable customers and their buying behavior on board. This in turn would help the outbound channel to target this past customer with appropriate communication strategy. ? Carnival can reposition themselves according to the segmenting and thereof, profitability analysis from the CRM.
THANK YOU
doc_883668151.ppt
This is a prsentation explain carnival cruise lines and it highlights luxury liner industry, customer base, touch points, experience, pricing, information system and CRM initiatives
CARNIVAL CRUISE LINES
CARNIVAL CRUISE LINES
? Launched in 1972 by Ted Arison ? Portfolio of 12 cruise lines and 75 ships covering four North American market segments as well as Europe ? Cruise lines is fastest growing leisure-travel industry ? Major brands are Carnival Corporation, Royal Caribbean international, Star Cruises and others controlled nearly 95% of the market ? The main value proposition of Carnival Cruise Lines was the low price leadership ? Vision: Provide Quality vacations that exceed the expectations of our guests’-that’s a recipe for success
CARNIVAL CRUISE LINES
? Clear Vision about the industry and commitment to brand essence ? Product design ( Fun Ship) based on customer expectations and needs ? VIP (Vacation Interchange Privileges program) ? Frugal , efficient and disciplined in investing even small amount per bed
? Offered Product variety through cruise duration
INDUSTRY EVOLUTION
?Fastest growing category of the North American leisure travel industry ? Target Segment: North American market in 4 segments (contemporary, premium, destination and luxury) ? Challenge: Convert land vacationers to cruisers
? Post 1960s- Pleasure Cruising
INDUSTRY EVOLUTION
? Array of activities on cruise (music, sports, spas, bars, internet café, fitness etc.) ? Major players: Carnival Corporation, Royal Caribbean, Star Cruises, Cunard lines ? Only 16% of North American Market had ever cruised leaving a large untapped base of potential customers.
CARNIVAL CUSTOMERS
? Products were popular with families, singles, honeymooners, and multigenerational families ? Pursued this broad market through promotional channels , including national
TV and cable TV, newspapers, direct marketing to the past guest database and
through travel agents ? Positioned itself as Everyman Fun Ships and no-frills party cruise line to attract people of all age group and income ? Customer profile similar with Industry’s standards but with notable differences
? Customer loyalty was low even though guest satisfaction rating was 98%
CUSTOMER PROFILES
Carnival Industry ? Average age was 50 years ? Household Income was about $ 99,000 ? 78% customers were married ? Popular with old and affluent ? One third guests were first timer
? Average age was 46 years with wide age difference ? Household Income was about $ 65,000 ? Carried fewer married passenger (55%) ? Popular with people of all age group ? Half of the guests were first timer
CUSTOMER TOUCH POINTS
Direct Marketing Customer Travel Agent Inbound(teleservices and website) Outbound(telemarketing) Internet Agents, Mom & Pop, @home agents
CUSTOMER TOUCH POINTS
Inbound
? Facilitated direct interaction with the customers.
Outbound
? Focus on last minute booking ? Risk of conflict with channel partners (travel agents)
? Qualified leads , more accurate &
extensive customer information ? Complexity in online booking ? Customer preferred live
interactions (travel agents)
CARNIVAL EXPERIENCE
? Experience began long before the ship set to sail as guests got information about cruise through web, signed up excursions online and help in customization ? Data about Guests were recorded through travel agents, online registration process and during embarkation ? The Sail and Sign card ? Offered services like spa, discounted alcohol, photo gallery and so on to increase cruise experience and net ancillary revenue ? Casinos, shore excursions, bars were some of the biggest on board revenue center.
CRUISE PRICING
? Cruise price includes: all meals and entertainment; casino; nightclubs; theatrical shows; movies; parties; a discotheque; health club; and swimming pools ? Cruises generally substantially booked several months in advance ? Other revenues:
• • • • • • • casino liquor and gift shop sales shore tours photography spa services promotional advertising by port of call merchants pre- and post-cruise land packages
Average cruiser spent an additional $30 to $50 per day on board
CARNIVAL INFO SYSTEM
? Its IS group involved 275 full-time employees shore side and 45 shipboard managers ? These custom developed applications which involved 16 servers and 120-150 Clients (PC+POS Terminal) per ship. ? On-board infrastructure shared Oracle Database ? It involved two key guest management applications:
• Property Management System (PMS) • Point of Sale (POS) / Fun Sales system (FSS)
? PMS was used to:
• Download guest data from on-board systems to shore side network to “close the voyage” • Produce voyage reports at revenue center and processing payments to external vendors
CARNIVAL INFO SYSTEM
? POS or Fun Sales System FSS:
• Offered a graphical user interface for allowing use of Sail & Sign cards for payment mode and post the charges in Guests Folio • Allowed employees to choose items to be charged
? Purchased its own customers’ list in 2001 of 20 million individual records or 10 million households ? Used custom-developed forecasting & pricing models, and included on-board spending in their new “revenue analytics” project ? It maintained a group of business analysts and an IS steering committee for developing, evaluating and approving business cases for new applications based on their ROI
CARNIVAL INFO SYSTEM
? IS group accumulated two year voyage’s guests’ transactional and behavioral data for enabling analysis by Carnival for:
• Understanding the performance of travel agents • Manage relationship with channels efficiently (incentives & rewards)
? Biggest Challenges faced here were:
• Wide variation in the sophistication of channel partners • Traditional Low IT spending in the industry
? Carnival did not strive to be a leader at innovating IT applications but was careful to be at par with competitors ? Maintained a conservative stance towards CRM and only devoted a fraction of a full time equivalent employee to customer data analysis
Dimension
Strategy
Competitive Advantage/ Objective
Locks in future purchases
Carnival Vacation Club
Recognition Cards
Differentiated services To fill ships Complaint handling and its resolution on the spot wherever possible
Customer retention (Repeat customers)
Direct marketing (PVPs) Consumer Response System
Customer satisfaction
Pricing
Revenue management
Higher profits
CRM INITIATIVES
? Use of travel-trade portal ? New online registration process for cruise boarding passes (Fun Pass) ? The Modern sail & sign card initiative ? Carnival’s Skippers Club( VIP’s & Buyers of high end staterooms and suites) ? Loyalty Programs Recognition cards
GAPS IN CRM ACTIVITIES
? Carnival didn’t had a single program primarily focussed to repeat customers (guests) ? The initiatives undertaken never targeted the preferences of the repeat customers, the onboard buying pattern and the travel pattern ? The customers were not being segmented on the basis of profitability ? There was a customer response system for handling and resolving complaints on the spot wherever possible. But the data from such system was not archived earlier which on analysis could have been helpful. ? Revenue management system which was in place to generate better margins. But the customer information was inadequate as the travel agent didn’t transform all the information correctly.
RECOMMENDATIONS
? Increase the direct consumer contact points ? Developing the loyalty programs without comparing with industry needs ? Special and adequate follow up by all centre executives for the past guests ? Building up the IT infrastructure to improve and own consumer
database
RECOMMENDATIONS
? Developing a process to record the feedback of consumers and working upon it ? Concentrate on developing repeat customers by building a state-of-the-art customer relationship management (CRM) system and by offering its current customers incentives to refer friends and family members ? Enriching the website
? Building relationships with consumers
greetings on occasions (birthdays, anniversaries etc) special rebates for new offerings
BENEFITS
? As Carnival operates in the contemporary segment and is the market leader in terms of capacity and market share, it has the potential of attracting a large chunk of the first timers. ? CRM initiative will help to segment the profiles of customers to understand their
preferences. An analysis of the same would help Carnival in revenue management.
? It will help in judging the profitable customers and their buying behavior on board. This in turn would help the outbound channel to target this past customer with appropriate communication strategy. ? Carnival can reposition themselves according to the segmenting and thereof, profitability analysis from the CRM.
THANK YOU
doc_883668151.ppt