CRM 700 ZSS

THIS IS YOUR Individual Case I

Case : Carnival Cruise Lines
Professor’s Name: Garry Chan

PRESENTATION TITLE
 Background
 Carnival cruise lines are owned by British
cruise lines, it falls under the category of the
largest cruise line in the world ( having 12
cruise lines that include Seabourn yachts, etc)
They have captured the market share of
51.6%
 They mainly has 4 categorizing of market
segmentation which includes a mass market,
elite class (premium passenger who wants
higher quality), and masses who wants to
reach their destinations to visit special places
and Luxury.
 Carnival lines set up their headquarter in
Miami.
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 Carnival cruise lines have their own pricing
model as they determine their prices according
to the occupancy level of the ship. For instance,
if they want higher occupancy in the ship they
will offer deals to their customers.
 Cruise line is having a huge client base as in
2004, winters around 3 million people sail with
their cruise.
 During 2004 they took the decision to buy back
their stock and dividend which towers their
share by $0.15 per share.
 Brief about the Cruise Industry
 Only 165 of the North Americans had never been
cruised.
 In the year 1970 the cruised line took 5 lakhs of
passengers.
 In the year 2004, they have projected more than 10
million visitors.

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 Problems Carnival Corporation is facing

The major problem that the carnival was facing is they don’t know how to deal with their data. As
they don’t have a centralised form of storing data which can be accessed by each and every
individual working with carnival cruise i.e. executives, travel agents, and their managers.
Moreover, they don’t have enough checks and accuracy in their collected data as most of the
booking is done by the agents and sometimes agents were not able to share whole details of the
passengers which pave the way to fragmented information with the carnival.

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Alternative Assessment

▪ Carnival cruise line came up with the idea of “Fun Ships” with this
new launch they can target the audience who just want to relax and
enjoy the number of activities.
▪ Carnival corporations earns huge profits, which helped them to take
over their sister brands.
▪ Carnival corporation took around 60000 passengers weekly,
Whereas their competitors carry 21000 masses on a yearly basis.
▪ Carnival cruise line categorized their client base on a demographic
basis which includes their age. i.e. their 24% of customers are 55 or
older, 40% between 35 and 55, 36% are 35 or younger.
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 Family with different generations, a newly married couple, a
Family with kids, and single people are the major customers for
the carnival cruise line.
 Carnival cruise line is having multifarious channels of promotion
which include travel agents and personal vacation planners.

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How Carnival Corporation has evolved so far?

 During 1960 they shifted their business towards

the delightful cruising.
 Their cruise carries 2500- 3800 masses which
includes passengers as well as crew members.
 After the year 1990, around 130 new ships had
been launched which resulted in a boost in the
cruise industry by 21%

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 Alternative Criteria

 Sail and sign card  Having this card  Gold sail card: This card
onboard paves the way works as an identification
serving as: It can be
to unlimited card less card for all the travellers
used as a mode of a who had been travelled
transactions from
credit card while on with them in past.
customers without any
the board. extra charges.  The gold cardholder is
 Passengers used this considered a valuable
 Having a gold card customer for the cruise as
card for registering may include several their feedback is
the extra activities benefits in kind. considered most
such as spa and important for the cruise
executions. crew.
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 Carnival Information System

Their Information system mainly consists of three applications

This system enhances the This tool is used by

sales of the carnivals crew them in order to
Property management
as when the passengers use
system (PMS), Point of analyse their pricing
their sign and gold cards it
sale(POS), Fun sales system automatically deducts the policy and to measure
(FSS). particular amount from their agent’s
customer folio. performance

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Recommendations

 They needs to maintain a customer relationship management tool that

will help them to retain their customer and to bring more customers.
Moreover, it will also help them to adjust to the major changes in
their process in an easy manner.
 Introducing CRM will result in the collection of data in one software
which will be accessible by their guest, executives, and managers.
 In order to attract new customers they need to enhance new activities
and amenities on the board.
 They should provide special discounts on special occasions like
birthdays and anniversaries, to their new as well as old customers.
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 Implementation Plan

 In order to implement carnival cruise lines need to merge their whole set of data or information
from their two major tools that are shoreside and shipboard computer system which includes
all the details of finance, passenger details, and their sign and gold card information. Then after
the merger, they have to put the whole data on the CRM application.
 Recognition programs and evaluation of loyalty cards can be the good way that can be taken.
 Carnival corporation needs to hire some good market expert or counsellors who are proficient
in the functioning of CRM tool. As only experts can comment or give recommendation on their
previous and current data, the major reason for this is that they are not expert in Information
technology.
 Their most of the booking’s are done with the help of agents, which pave the way to no direct
interaction with their customers. So in order to maintain good customer relationship they
should introduced some direct point of sale

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 Appendix

 Providing customized services to their customer with the help of CRM it will help
them to make their customer feel special. This will help in customer retention.
 Understanding the expectations of their customers will help them to gain repetitive
or regular customers.
 Introduction of new IT system may also give enhancement in their CLV as it will
help them in understanding the individuals processes and cultures.

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