Are We on the “Fun Ship” Yet?

Chapter One
Case

Case 1-1
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 Cruise Industry Background
• A sea voyage taken for pleasure
• Fast growing industry
• Dominated by three companies: Carnival,
Royal Caribbean, and Star
• Have different brands based on
geographically pertinent themes and cost
per cruise

Case 1-2
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall
 Doing Business in International
Waters
• Companies register where taxes are low
and labor laws less restrictive
• Pay port fees wherever they anchor
• Own or have arrangements with tour
companies at ports of call

Case 1-3
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 What It Takes to Operate a Cruise
Line
• Purchase expensive ships from shipyards
around the world
• Find able-bodied seamen
• Create casinos and other amenities

Case 1-4
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall
 The Overseas Environment
• Political Issues
• Health Issues
• Economic Issues
• Weather

Case 1-5
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall
 Questions
1. What global forces have contributed to the growth of the cruise-
line industry?
2. What specific steps has Carnival Cruise Lines taken to benefit
from global social changes?
3. What are some of the national differences that affect the
operations of cruise lines?
4. How might cruise lines increase sales to people outside the
United States?
5. What threats exist for the future performance of the cruise-line
industry and, specifically, of Carnival Cruise Lines? If you were in
charge of Carnival, how would you (a) try to prevent these threats
from becoming reality and (b) deal with them if they did become
reality?
6. Discuss the ethics of cruise lines regarding the avoidance of
taxes while buying ships built with governmental subsidies.

Case 1-6
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall