SWOT - Cruise Industry & Carnival
The strengths of Carnival and the cruise industry include cheap fares and employment options, while the weaknesses include the Costa Concordia tragedy and high maintenance costs. The opportunities available for Carnival and the cruise industry include investing in gadgets and using Instagram to attract more customers, while the threats include lack of innovation and the limited presence of shipbuilders. Below is a detailed explanation of our findings.
SWOT ANALYSIS OF CARNIVAL
Carnival Cruises places its cruise ships in areas that are easily accessed by Americans. They are also available across U.S. ports, which over 50% of the Americans can access within a day of driving. Cruises are primarily cheaper than other ways of travel; thus, Carnival focuses on low fares, which many customers find to be budget-friendly. Generally, the cruise industry creates employment opportunities from 800 to 1,500 new job positions for each new ship. On that note, Carnival Cruise is expected to launch four new cruisers in 2019, which could result in new job opportunities for the unemployed. Cruises feature various factors that motivate Americans to use them for vacation. These factors include increased violence and the migrant crisis at some tourist destinations. Besides, cheap fares and the high-class experiences Carnival and other cruise industries provides attracts many customers. Such experiences include above standard dining services and low price nightclubs that are inspiring many younger people to join cruise vacations.
The cruise industry was negatively affected by the Costa Concordia tragedy in 2012. Moreover, in February 2014, a fire in Carnival Triumph’s engine room left 3,100 people stranded for five days in the Gulf of Mexico. Consequently, repairs to the damaged vessel cost Carnival approximately $115 million. After the incident, Carnival spent another $300 million in a safety upgrade program. Overall, cruise companies should always operate and have their ships ready because one week of inactivity due to maintenance could cost them tens of millions of dollars and cause dissatisfaction among customers.
As technology and passenger apps continue trending in the cruise industry, Carnival introduced different technological innovations such as sensors, 4K touchscreens, equipment for gaming, i.e., PlayOcean and Ocean Medallion (an innovative and wearable piece of technology used for embarkment and entertainment). Furthermore, there is a rising trend in using Instagram regarding cruising. Carnival has become active on the platform and is constantly capturing 12,000 followers monthly.
The presence of few shipbuilders and technology developers in the industry pressures the cruise companies to accept the prices and costs offered to them. On the other hand, intensive repairs lasting for more than a month also cost players in this industry over $50 million. In terms of innovation, Carnival is inferior to the Royal Caribbean. Carnival’s entertainment options feature more classic polishes such as pools and mini-golf when they should be introducing innovative entertainment options such as waterslides or observation pods that can bring passengers up and out over the water.
On the other hand, Royal Caribbean has larger ships that can bring more than 5,500 passengers, while Carnival’s biggest cruisers can handle less than 4,000 passengers. In closing, after the Costa Concordia tragedy in 2012, cruise ship experts, passengers, and cruise ship injury law firms noted that some aspects of cruise travel were becoming less safe.