MARKETING THE INDUSTRY SEGMENTS

MARKETING THE INDUSTRY SEGMENTS 4.03 Explain the cruise industry.

The cruise experience… • “Floating resorts” • All-inclusive vacations • Includes transportation, meals, lodging, recreation, and entertainment • Service is equal for all passengers. • Itineraries, destinations, and cabin locations are the main factors segmenting the cruise industry. • Cruise lines offer diverse itineraries to appeal to different markets.

Cruise Market Segments • Mass market • Middle market • Luxury market

Mass Market • Passengers have income from $20,000-$39,000. • Carnival Cruises • http://www.youtube.com/watch?v=XQf2OlLbzog

Middle Market • Passengers have income from $40,000-$59,000. • Largest portion of the cruise market. • Princess Cruises and Norwegian Cruises • http://www.youtube.com/watch?v=NnZzDywn_fs

Luxury Market • Passengers have income in excess of $60,000. • This market level offers superior service and cuisine. • Seabourn Spirit and the Radisson Diamond serve this market. • http://www.youtube.com/watch?feature=endscreen&v=hRnwg-zFlRE&NR=1

GRT: Gross registered tonnage;the amount of enclosed space on a ship; one GRT is equal to 100 cubic feet. • Space ratio: The amount of space per passenger on a cruise ship. The space ratio is a guide to the market level of a ship. A ratio of 35 or higher indicates a capacious ship. Space ratio = GRT/Number of passengers

Accommodations… *The location of the cabin may be the only distinction that separates passengers. • Larger staterooms are on upper decks. • Suites have separate bedroom and lounge/living areas. • Top decks rooms often have a terrace. • Cabins on the upper decks are the most expensive.

Accommodations…(cont.) • Cabins located on the outside of the upper decks have portholes (windows). • Cabins located on the inside and lower decks have no windows. • Cabins are designed for efficient use of space.

Elements of a cruise… • Embarkation • No cash needed • Security checks • Meals • Daily program

Embarkation… • Cruises are usually circle trips • Departing and returning to the same port city • Port City known as the embarkation point.

No cash needed… • Passengers use credit card to open an account before setting sale. • All purchases on board the ship are charged to the account. • Passengers settle charges at the end of the trip. • Passengers without credit cards must make a cash deposit prior to setting sail.

Security checks… • Cruise passengers are required to go through a security check. • Some ships issue passengers a plastic card that serves as their cabin key, boarding pass, and ID for coming back from visiting a port of call.

Meals… • Formal and informal dining • Menus may be theme related or haute cuisine • Buffet services for casual dining • Pizza and ice cream bars available • Midnight buffets • Room service available • Appetizer parties on first and last nights of a cruise

Reservations for the dining room… • “One seating” allows passengers to dine anytime during serving hours. • Early or late seating requires passengers to dine at a set time.

Daily program… • Program activities for the next day is put in the passenger’s room at night. • Information helps passengers plan their activities.

Types of Cruise passengers… • Active. With the variety of activities on a ship, it is easy to stay busy. • Families. Special activities are designed for children so parents can relax and enjoy themselves. • Gamblers. Casinos offer entertainment for passengers interested in playing. • Those celebrating an event. Special occasions are often celebrated on cruise ships.

Cruise passengers…(cont.) • International travelers. Cruise itineraries satisfy travelers who want to experience the appeal of other countries. • Those who wish to relax. Passengers decide whether or not to participate in activities. Pools, spas, and massages are available. • Singles. Ships provide the opportunity to meet others.

Cruise passengers…(cont.) • Those with special interests. • “Theme cruises” to appeal to many special interest groups • whale watching or wine tasting http://www.youtube.com/watch?v=SihMgWxBnSU

Popular cruise destinations… • Bahamas • Baltic Sea • Bermuda • The Caribbean • Mediterranean • South America • Alaska

Air-sea packages… • Flights to the embarkation port may be included. • Added convenience to the travelers • If flights are delayed, the ship may delay sailing to wait for the bulk of passengers, or passengers may be flown to meet the ship at the next port. • Shuttle service between the airport and the port is usually included.

Marketing strategies used by industry… • Many cruises are promoted through agencies. • Cruise lines have sales teams who go to individual agencies to assist with advertising and sales promotion of their cruise line. • Sales incentives are offered to agents to influence them to promote one cruise line over another. • Brochures are the main promotional tool. • Websites provide an opportunity for a timely response.

Marketing strategies used by industry… • Sales promotion items used on ships include glassware, cruise line clothing, towels, and other souvenirs in the gift shops. • Cruise lines utilize television advertising to reach mass markets and magazines to cater to particular market segments. • Direct mailings are frequently used to follow up with cruise customers, and email is used to deliver newsletters and alert cruisers of upcoming specials.

Trends in the cruise industry… • Has remained strong despite 9/11/01 • Rapidly growing segment • Safer ship designs due to technology • Individual ships marketed to specific target markets • Navigational aids can pinpoint ship location at all times • Niche marketing • Baby boomer travel

MARKETING THE INDUSTRY SEGMENTS