Carnival Cruise Brands

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Company Overview - Carnival

Carnival Cruise Line, a subsidiary of Carnival Corporation, is known as “The World’s Most Popular Cruise Line®” and carries an average of 5 million passengers annually. Additional details of the brand have been provided below.

Passengers

  • Carnival Cruise Line was founded in 1972 and has grown today to be know as “The World’s Most Popular Cruise Line®”.
  • Carnival Cruise Line is owned by Carnival Corporation which carried 12.4 million passengers in 2018.
  • Carnival Cruise Line carries roughly 5 million passengers annually.
  • Carnival Cruise Line is expected to have 3 additional ships added to their fleet between 2019-2021 with a total added capacity of 14,550 passengers.
  • The brand has 26 ships currently in its fleet.

Revenue

  • Carnival Cruise Line generated an estimated annual revenue of $7.6 billion USD in 2018.
  • Carnival Cruise Line holds 16.7% of the total luxury cruise market.
  • In addition, the brand holds 40.3% of the parent company's revenue.
  • The brands parent company, Carnival Corporation, generated an annual revenue of $18.88 billion holding 41.4% of the luxury cruise market in 2018.
  • Carnival Corporation's revenue segments are as follows:

Customer Perceptions

  • Customers have rated the Carnival Cruise Line brand at 3.5 stars out of 5 on online review sites.
  • Customer perceptions have recently been affected by the release of information by the Federal Court stating the Carnival Cruise Line has the highest rate of sexual assault in the industry. These figures, however, do not take into account the number of total passengers on board per year, but rather the average number of passengers on any given day which can vary depending on the season.
  • After analyzing a sampling of negative customer reviews on social media and review sites, we found that most customers more commonly perceive the company as "too expensive," to have "hidden fees" or have "bad customer service."
  • The most common complaint by customers is related to fees.
  • According to Carnival Cruise Line, customers still view the company as the most recognizable cruise brand in the world.

Industry Perceptions

  • In 2019, Forbes named Carnival Cruise Line among the top employers in the cruise line industry and leisure industry.
  • Forbes also recognized the company as ranking in the top rated travel and leisure companies in line with hotels, resorts, travel agencies, and other entertainment groups.
  • Factors such as engine malfunctions and engine emissions are downfalls to how the company is perceived in the market, however, experts and media coverage show that these factors are expected on some occasions. Experts say that while Carnival had a rather harsh confluence of events in early 2019, industry perception remains minimally altered.
  • Company personnel told industry journalists that they plan to offset negative perceptions in the market with increased focus on positive ad campaigns such as the new 2019 trade campaign featuring travel agents as "Fun facilitators."

Research Strategy

According the Crunchbase and Carnival Corporation, Carnival Cruise Line is a private subsidiary of Carnival Corporation and does not file financial data segmented to the brand. We were, however, able to find the number of passengers carried on Carnival Cruise Line and Carnival Corporation. Because passenger tickets generated the majority of Carnival Corporation's revenue in 2018, we used the number of passengers carried to calculate the percentage of the company held by Carnival Cruise Line with the following calculations:
  • Brand passengers/parent company passengers=percentage of company held.
  • 5 million/12.4 million=0.403 or 40.3%
  • Parent company revenue*percentage of company held= brand revenue.
  • 18.88 billion*.403=7.6 million
The total luxury cruise market size globally was valued at $45.6 billion in 2018. Using this figure, we calculated the market share of carnival using the following calculations:
  • Company revenue/Market Size= Market share
  • Carnival Corporation: 18.88/45.6 billion=0.414 or 41.4%
  • Carnival Cruise Line: 7.6/45.6=0.167 or 16.7%

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Company Overview - Princess

In 2018, Princess Cruise Line has an annual revenue of $206.8 million and 12,407,000 passengers, giving them a 9.1% market share of revenue and a 6.4% market share of passengers. On the largest review site, CruiseCritic, 67% of the reviews were good or very good, while only 12% were poor or terrible.

Passenger Numbers

  • Princess Cruises has 24 ships with a total of 39,680 berths.
  • The cruise lines capacity is 1,519,400 when all berths are full.
  • Carnival Total Passengers in 2018 was 12,407,000.

Revenue

Customer Perception

  • Of the 21, 821 reviews on the site cruise critic, 40% (8,737) rated the cruise excellent, 27% (5,826) were very good, 17% (3,767) rated it average, and 12% rated it poor or terrible.
  • Positive comments from those available include "Pacific Princess is a Hidden Gem," "Princess small ship continues to impress," "Wonderful cruise of the UK and Ireland on a lovely, gracious ship" and "Pacific Princess Superb!!!.
  • Negative comments include "Avoid this cruise" and "Perfect, but with one big flaw."

Industry Expert Perception

  • Cruise Critic® is the world's largest cruise reviews site and online cruise community. In its 11th annual Editors’ Picks Awards, Princess Cruises won three awards in the United States- Best for Cabins, Itineraries and Shore Excursions, and two awards in Australia — Best New Cruise Ship — Majestic Princess and Best for Dining. The awards are chosen by the organization's global panel of impartial cruise experts.
  • US News Travel section listed the following positive points about Princess: a flexible dining schedule and a wide variety of culinary options, wheelchair-accessible cabins with special accommodations like lowered closet railings and bath distress alarms and the ability for groups to coordinate their travel plans in one place with Princess' Cruise software. Negatives include the fact that some onboard amenities cost extra, ships with large numbers of passengers can mean dense crowds and longer lines at dining venues and shore excursions can be expensive.
  • In USA Today, a recent article in the travel section stated that Princess Cruise line was a recognized leader in worldwide cruising and a favorite among guests and critics. It has won multiple awards, including: “Best Cruise Itineraries” — Recommend Magazine (over a dozen times!); Highest Customer Satisfaction — TravelAge West; “Best Cruise Line In Alaska” — Travel Weekly (over a dozen times!) and Best Ocean Cruise Line."

Market Share

  • In 2018, Princess Cruise line had 6.4% of the passengers and 9.1% of the revenue.


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Company Overview - Holland America

Holland America has been a subsidiary of the Carnival Corporation since 1989. The company is also recognized as one of the leaders in the premium segment of the cruise industry. With 14 ships, the cruise line carries around 800,000 passengers annually and has an estimated revenue of $358.67 million.

Passenger Numbers

  • Holland America Line has a fleet of 14 ships that offer customers with more than 500 cruises per year. Moreover, the company expects the 15th ship that will be named Ryndam to be delivered in 2021.
  • The ships have a capacity that ranges from 1,258 to 2,668 passengers.
  • According to TripSavvy, most passengers that board Holland America are experienced cruisers in their 50s if not older, who not only love traditional cruising but also good quality products.
  • Holland America was founded in 1873 and since then, it has carried over 11 million passengers to their destinations.
  • Currently, it carries more than 800,000 cruise passengers annually.
  • According to Cruise Market Watch, Holland America carried 831, 500 passengers in 2018.

Revenue

Customers Perceptions

Industry Perceptions

Market Share

Research Strategy

In order to gather information on how Holland America is fairing in the market, the research team started by looking for the company's financials and other information such as its market share from credible industry databases such as D&B Hoovers, Cruise Market Watch, and Crunchbase. We also searched through the company's website and annual reports and since Holland America is part of the Carnival Corporation, we made use of the parent company's reports.
To determine both the industry and public perceptions, we looked for articles, reports, ratings, and reviews from YouGov BrandIndex, Statista, Travel Weekly, and Cruise Critic. From this search, we were able to gather helpful information that enabled us to compile the above report.
The research team was not able to find pre-compiled data on Holland America's market share. However, we were lucky to find both the cruise industry and Carnival Corporation 2018 revenues and we used this data to calculate the company's market share. A company's market share can be determined by dividing its total sales or revenues by the industry's total sales over a fiscal period.
We, therefore, divided Carnival Corporations 2018 revenue ($4,167 million) by the cruise industry 2018 revenue ($45.6 billion) and multiplied the result by 100 to get the % market share. From this calculation, we were able to get a general idea of the size of a company relative to the industry.
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Company Overview - Seabourn

Each year, between 90,226-118,200 passengers attend a cruise through Seabourn. According to cruise review sites, most customers have given Seabourn a favorable rating. Below is an analysis of Seabourn's financials, the number of passengers it served, and how customers and the industry experts perceive them.

Passenger Numbers

  • Seabourn hosts between 90,226-118,200 passengers a year. (Passenger size 458*197 trips annually=90,226 and Passenger size 600*197 trips annually=118,200).

Revenue

Customer Perceptions

  • According to the cruise review site, Cruise Critic, customers (a total of 628) rate Seabourn favorably. Around 58% of customers (362/628*100=58%) rate Seabourn as Excellent, 17% as Very Good (107/628*100=17%), 14% as Average (92/628*100=14%), 7% as Poor (48/628*100=7%), and 3% as Terrible (19/628*100=3%).
  • Among the favorable feedback given by customers is: 1) "Wonderful cruise, lots to love with a little room for improvement," 2) "Perfect in every way! Boston to Montreal," 3) "The best food of all the small luxury cruise ships," 4) "Excellent Cruise from two happy Kiwis," 5) "Excellent in every way," and 6) "Best cruise line ever!"
  • Among the less favorable feedback is: 1) "Not Our Cup of Tea, but perhaps yours..;-))," 2) "Standards have slipped and your suite selection is essential," 3) "Average experience on luxury line," 4) "Food was mediocre, plenty of it, but just not very exciting," 5) "this cruise was dreadfully disappointing and we feel completely misled by Seabourn as to the intended itinerary," and 6) "Starting with finding a pair of dirty women's underwear on the floor of our cabin upon check-in, being served frozen steak in their 'nice' restaurant, finding all 40 chaise lounges at the pool 'reserved' while 3 people were in the pool, being ignored by bar staff and the very limited dining hours outside of the 24-hour room service which didn't offer a lot of choices."

Industry Experts Perceptions

  • According to a 2019 survey conducted by Travel and Leisure, Seabourn is ranked third (out of 10) in their "The Top 10 Large-Ship Ocean Cruise Lines."
  • U.S. News and World Report ranked Seabourn as second out of 11 in the category of "Best Cruise Lines for Couples," 2020.
  • Conde Nast Traveler ranked Seabourn third out of 14 of the 2019 best medium ship-lines.

Research Strategy

Our search began by focusing on Seabourn's web page, where we were able to locate how many passengers it served this past year. We also tried to locate their revenues--looking at the annual report for Carnival, which is their parent company. Unfortunately, Carnival's annual report--especially their reporting of revenues--was consolidated, hence we could not determine from this report the annual revenue of Seabourn.

To locate the annual revenue, we then searched business directors (e.g., Hoover and Craft.co). We were able to find Seabourn's annual revenue published on Hoover.

Finally, we conducted searches for customer reviews as well as industry expert reviews of Seabourn by looking for travel rating companies and customer rating sites. This successfully led to helpful sources of both customer and industry expert ratings.
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Company Overview - Cunard

Cunard Line has three ships in its fleet, namely Queen Elizabeth, Queen Victoria, and Queen Mary 2 with 2,092, 2,081, and 2,695 passenger capacity respectively.

Passenger Number

  • Cunard currently has three ships in its fleet, namely Queen Elizabeth, Queen Victoria, and Queen Mary 2 (QM2). A fourth 3,000 passenger ship is expected to be launched by 2022.
  • Queen Mary 2 was launched in 2004 and refurbished in the summer of 2016. Its current passenger capacity is 2,695 and 151,400 gross tonnage (GT).
  • Queen Victoria was launched in 2007 and relaunched in June 2017 following a significant facelift. Its current capacity is 90,049 GT and 2,081 passengers.
  • Queen Elizabeth was launched in 2010 with a passenger capacity of 2,092 and 90,901 GT.

Revenue

  • The brand’s parent company, Carnival Corporation, generated an annual revenue of $18.88 billion.
  • Carnival Cruise Line holds 16.7% of the total luxury cruise market.

Customer Perception

  • Of the 2,452 reviews on the site Cruise Critic, 43.63% (1,070) rated the cruise excellent, 21,73% (533) very good, 17.98% (441) rated it average, and 14.80% (363) rated it poor or terrible.
  • Positive comments from the reviews include equal passenger treatment, welcoming and friendly crew, a variety of feeding venues, excellent enrichment activities, and provision for physically impaired people.
  • Negative comments from the reviews include a poor navigation system and ships layout, the ship was dark and claustrophobic, passengers had to find their sitting positions, and Shops, library, and spa open after 5 pm daily.
  • Queen Mary 2 has a 4.10 rating out of 5.0 by reviewers on U.S News & World Report.

Industry Expert Perception

Market Share

  • In 2018, Cunard Cruise line had 0.7% of the passengers and 1.8% of the revenue in the cruise line market.
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