MARKETINGTHEINDUSTRY

SEGMENTS
4.03Explainthecruise
industry.
Thecruiseexperience
Floatingresortsorall-inclusive
vacations
Includestransportation,meals,lodging,
recreation,andentertainment
Serviceisequalforallpassengers.
Itineraries,destinations,andcabin
locationsarethemainfactorssegmenting
thecruiseindustry.Cruiselinesoffer
diverseitinerariestoappealtodifferent
markets.
CruiseMarketSegments
Massmarket
Middlemarket
Luxurymarket
MassMarket
Passengersinthiscategory
haveincomefrom$20,000-
$39,000.
CarnivalCruisesarepopular
withthismarket.
MiddleMarket
Passengersinthis
categoryhave
incomefrom
$40,000-$59,000.
Thisisthelargestportion
ofthecruisemarket.
PrincessCruisesand
NorwegianCruisesare
popularwiththismarket.
LuxuryMarket
Passengersinthis
categoryhave
incomeinexcessof
$60,000.
Thismarketleveloffers
superiorserviceand
cuisine.
SeabournSpiritandthe
RadissonDiamondserve
thismarket.
GRT:Grossregisteredtonnage;the
amountofenclosedspaceonaship;
oneGRTisequalto100cubicfeet.
Spaceratio:Theamountofspaceper
passengeronacruiseship.Thespace
ratioisaguidetothemarketlevelofa
ship.Aratioof35orhigherindicatesa
capaciousship.
Spaceratio=GRT/Numberofpassengers
Accommodations
*Thelocationofacabinonacruiseshipmay
betheonlydistinctionthatseparates
passengers.
Largerstateroomsareonupperdecks.
Suiteshaveseparatebedroomand
lounge/livingareas.
Someroomsontopdeckshaveaterrace.
Cabinsontheupperdecksarethemost
expensive.
Accommodations(cont.)
Cabinslocatedontheoutsideoftheupper
deckshaveportholes(windows).
Cabinslocatedontheinsideandlower
deckshavenowindows.
Cabinsaredesignedforefficientuseof
space.
Elementsofacruise
Embarkation
Nocashneeded
Securitychecks
Meals
Dailyprogram
Embarkation
Cruisesareusually
circletrips,departing
andreturningtothe
sameportcity,knownas
theembarkationpoint.
Nocashneeded
Priortosettingsail,passengersgivean
imprintoftheircreditcardtoopenan
accountonboardtheship.
Allpurchasesonboardtheshipare
chargedtotheaccount.
Passengerssettletheirchargesatthe
endofthetrip.
Passengerswithoutcreditcardsmust
makeacashdepositpriortosettingsail.

Securitychecks
Cruisepassengersarerequiredto
gothroughasecuritycheck.
Someshipsissuepassengersa
plasticcardthatservesastheir
cabinkey,boardingpass,andID
forcomingbackfromvisitingaport
ofcall.
Meals
Formalandinformaldining
Seatingarrangementsmaybefor2or10
Menusmaybethemerelatedorhautecuisine
Buffetserviceavailableforcasualdining
Pizzabars,icecreambars,andothertreats
availablethroughouttheday
Midnightbuffetsareafestiveoccasion
Roomserviceavailable
Specialappetizerpartiesonfirstandlastnightsof
acruise

Reservationsforthediningroom
Oneseatingallowspassengers
todineanytimeduringserving
hours.
Earlyorlateseatingrequires
passengerstodineatasettime.
Dailyprogram
Eachnight,theprogram
activitiesforthesubsequentday
isputinthepassengersroom.
Thisinformationhelps
passengersplantheiractivities.
Cruisepassengers
Active.Withthevarietyofactivitiesona
ship,itiseasytostaybusy.
Families.Specialactivitiesaredesignedfor
childrensoparentscanrelaxandenjoy
themselves.
Gamblers.Casinosofferentertainmentfor
passengersinterestedinplaying.
Thosecelebratinganevent.Special
occasionsareoftencelebratedoncruise
ships.
Cruisepassengers(cont.)
Internationaltravelers.Cruiseitineraries
satisfytravelerswhowanttoexperiencethe
appealofothercountries.
Thosewhowishtorelax.Passengers
decidewhetherornottoparticipatein
activities.Poolsareavailableforlounging
andsunning,andspasareavailableatan
extraexpense.
Singles.Shipsprovidetheopportunityto
meetothers.
Cruisepassengers(cont.)
Thosewithspecialinterests.Cruiselines
havedevelopedthemecruisestoappealto
manyspecialinterestgroups,i.e.,whale
watching,winetasting,etc.
Popularcruisedestinations
Bahamas
BalticSea
Bermuda
TheCaribbean
Mediterranean
SouthAmerica
Alaska
Air-seapackages
Transportationtotheembarkationportmaybe
includedwithacruisepackage.
Bypackagingtheflightandcruisetogether,
passengersonlyhavetocommunicatewithone
companyregardingtheirreservations.
Ifflightsaredelayed,theshipmaydelaysailingto
waitforthebulkofpassengers,orpassengersmay
beflowntomeettheshipatthenextport.
Shuttleservicebetweentheairportandtheportis
usuallyincluded.
Marketingstrategiesusedbyindustry
Manycruisesarepromotedthroughagencies.
Cruiselineshavesalesteamswhogotoindividual
agenciestoassistwithadvertisingandsales
promotionoftheircruiseline.
Salesincentivesareofferedtoagentstoinfluence
themtopromoteonecruiselineoveranother.
Brochuresarethemainpromotionaltool.
Websitesprovideanopportunityforatimely
response.

Marketingstrategiesusedbyindustry
Salespromotionitemsusedonshipsinclude
glassware,cruiselineclothing,towels,andother
souvenirsinthegiftshops.
Cruiselinesutilizetelevisionadvertisingtoreach
massmarketsandmagazinestocatertoparticular
marketsegments.
Directmailingsarefrequentlyusedtofollowupwith
cruisecustomers,andemailisusedtodeliver
newslettersandalertcruisersofupcomingspecials.

Trendsinthecruiseindustry
Hasremainedstrongdespite9/11/01
Rapidlygrowingsegment
Safershipdesignsduetotechnology
Individualshipsmarketedtospecifictarget
markets
Navigationalaidscanpinpointshiplocationat
alltimes
Nichemarketing
Babyboomertravel