GROUP 3
CRUISE BUSINESS
Group members
Yao Ju M99Y0206
Ninh M997Z211
Nancy M997Z228
James
M99Z0216
Melva M997Z227
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 CoverageType of Cruise in the MarketThematic CruisesDifferent Cruise Brands
Managing Yield on CruisePricing & Promotions
Promotional PartnersPromotional StrategiesMarketing Communications
Distribution Channel
Understanding What’s Cruising
Manage yield with promotion
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 MarketingStrategy
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 CruiseGourmet Cruise
Golf Cruise
Romance Cruise
Heritage, Culture & Gourmet
Kids Cruise
HoneyMoon Cruise
Emeraude
Managing Yield on CruiseYield Management is a from of Revenue
Management for Increment Revenue. It can be obtained from:
Different types of CabinDifferent promotions across/ countryDifferent promotions within one countryOnboard expensesMiscellaneous purchase onboard like Spa,
Casino, Photo Gallery, Shopping…
Pricing & Promotions Early Bird Special Seasonal (Peak, low season)Tactical OffersIncremental Offers (by 3 get 5)Loyalty Program SpecialExclusive Memberships’ SpecialCabin UpgradeLast minute / Standby Offers
Promotional PartnerTravel agentsCorporate/ Incentive HousesNational Tourism OrganizationsPort AuthoritiesBanks, Spas, Telecoms ect.Clubs and AssociationsAirlines and Travel PartnersRegular Customers
Promotional StrategiesPricing/ Tactical StrategiesTheming StrategiesCollaboration StrategiesNew product launchNew product ExtensionSponsorship
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 COMMUNICATIONSMedia AdvertisingDirect AdvertisingOutdoor AdvertisingIn-Store AdvertisingE- AdvertisingEvent AdvertisingRelationship Advertising/ Personal SellingTrade 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 ChannelsTravel Agents (GSA, PSA)Direct Booking Online/WebsiteGlobal Distribution System (Galieo, Sabre,
Abacus, Amadeus)Call centrePromotional Partners
Distribution Partner: GSAGSA is General Sales AgentGSA 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
GSA
Agent A Agent B
GSA
Agent A Agent B
GSA
Agent A
Distribution Partner: PSAPSA means Preferred Sales AgentPSA 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
Preferred Agent C
Cruise Lines
Preferred Agent APreferred Agent B
Future Trends
Uncertain & varied outlookReduced price had led to a drop in
standardDiscounting owing to competition had led
to more innovative products,More innovative ways of making onboard
revenueMore added facilities like ice skating rink,
roller coaster, bungee jumping, bowling alley, virtual reality games
Future TrendsMore potential MarketsMore multi-generations, singles going
onboardKids will be going for free at timesMore adventure and expedition cruises for
emerging marketsNew Traveling ConceptsMore theme cruisesMore international spas onboard cruiseMore “homeland” Cruising in US
Future TrendsBetter EntertainmentProduction 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 shipTerrorist attacks & political unrest around the
world may dispute industry revenues againOver-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 conceptsCompete with Size, FacilitiesLarger Cabins, VerandasMore Dining OptionsNew Concepts like spa, golfMore entertainment, sportsInnovative Enrichment
ProgramExciting Shore ExcursionFreestyle Cruising
Thank you!