GROUP 3

CRUISE BUSINESS

Group members

Yao Ju M99Y0206

Ninh M997Z211

Nancy M997Z228

James

M99Z0216

Melva M997Z227

Allison

M99Y0105

SELLING AND MARKETING OF CRUISE

History of cruise ship- Cruise ships have developed since the last

150 years- At first, ships were made for discovery,

post, transportation- 1801: The first ship using steam started to

work- 1960s: Cruise ship revolution began- 1980s: Cruise ship industry got stronger &

stronger

1990s: +The first ships with well equipped

facilities, recreations, etc started to work +Global cruise industry averaged an 8.5

percent annual growth in bookings

After 2002: cruise industry growth slowed a little bit due to concerns about terrorism, high energy costs, increased population harbors, etc.

Areas of CoverageType of Cruise in the MarketThematic CruisesDifferent Cruise Brands

Managing Yield on CruisePricing & Promotions

Promotional PartnersPromotional StrategiesMarketing Communications

Distribution Channel

Understanding What’s Cruising

Manage yield with promotion

Marketing with promotion

Understanding Booking Network

What is Cruising ?

Apart from the Sea Experience, you sell various facets like:

Size (Facilities)Floating Resort (Balcony class)Entertainment (Broadway Show)Appeal (Lifestyle, Prestige, Fun)Different Types of Cruises

Cruise Ships – Not just for Grandma and Grandpa anymore

What’s the reason?

Some fortuitous events beyond the companies’ control (such as the influence of Titanic movie)

Better marketing programs in Cruise industry => satisfied all the market segment

Let’s make it clear by focusing on Marketing program!

Understanding Branding Positioning

Correct MarketingStrategy

Types of Cruises in the Market

Destination Cruise

Special or Theme Cruise (Singles Cruise, Wedding, Party, Spa & Wellness, Kids…)

Cruise Variatations / Product Extension (Fly Cruise, Coach Cruise, Train Cruise)

Budget Cruise (Easy Cruise)

Other

A Look at some of the theme CruiseGourmet Cruise

Golf Cruise

Romance Cruise

Heritage, Culture & Gourmet

Kids Cruise

HoneyMoon Cruise

Emeraude

Managing Yield on CruiseYield Management is a from of Revenue

Management for Increment Revenue. It can be obtained from:

Different types of CabinDifferent promotions across/ countryDifferent promotions within one countryOnboard expensesMiscellaneous purchase onboard like Spa,

Casino, Photo Gallery, Shopping…

Pricing & Promotions Early Bird Special Seasonal (Peak, low season)Tactical OffersIncremental Offers (by 3 get 5)Loyalty Program SpecialExclusive Memberships’ SpecialCabin UpgradeLast minute / Standby Offers

Promotional PartnerTravel agentsCorporate/ Incentive HousesNational Tourism OrganizationsPort AuthoritiesBanks, Spas, Telecoms ect.Clubs and AssociationsAirlines and Travel PartnersRegular Customers

Promotional StrategiesPricing/ Tactical StrategiesTheming StrategiesCollaboration StrategiesNew product launchNew product ExtensionSponsorship

MARKETING COMMUNICATIONS

An Advertising Strategy is a message that brings forth the

product or brand’s value proposition.

Slogan & Brochure

Once you’ve Cruised you’ll never want it to end

Furama“Vietnam’s truly beach resort”

“Summer in style 5 star Plus”

“ Best beach break on the best beach of the world”

Brochure

MARKETING COMMUNICATIONSMedia AdvertisingDirect AdvertisingOutdoor AdvertisingIn-Store AdvertisingE- AdvertisingEvent AdvertisingRelationship Advertising/ Personal SellingTrade Advertising

Advertisement

Advertising create awareness of a product and bring forth the target audience to buy the

product.

Allows the company to convey the features & unique selling propositions of the product.

Advertisement

Branding Advertisement not only feature the product but also avail concepts like lifestyle, prestige.

Tactical Advertisement has a strategy and tend to focus on price

Thematic Advertisement focus on a theme or a particular topic, area.

Different types of Advertisement

Direct Advertisement

GSA Advertisement

PSA Advertisement

Co-operation Advertisement

Cruise Distribution ChannelsTravel Agents (GSA, PSA)Direct Booking Online/WebsiteGlobal Distribution System (Galieo, Sabre,

Abacus, Amadeus)Call centrePromotional Partners

Distribution Partner: GSAGSA is General Sales AgentGSA is similar to a Sales Representative that

assist the company in the areas of sales or even marketing of the product it represents.

The Selection is based on reasons like the GSA’s business & booking network, the potential to expand and grow the market for the product.

Distribution Partner: GSA

The GSA will receive commission, incentive, rebates and sometimes consultancy fee for the sales and marketing activities it has done on behalf for the product and the company

Cruise Lines

GSA

Agent A Agent B

Sub Agent I Sub Agent II

GSA

Agent A Agent B

GSA

Agent A Agent B

GSA

Agent A

Distribution Partner: PSAPSA means Preferred Sales AgentPSA are exclusive agents appointed by

the company to market the product with special commission, incentive, rebates on behalf for the sales and marketing activities done for the product.

Usually they form a consortium of agents or a grouping and will receive guidance and instructions from the product companies on sales and promotion strategies

Preferred Agent C

Cruise Lines

Preferred Agent APreferred Agent B

Future Trends

Uncertain & varied outlookReduced price had led to a drop in

standardDiscounting owing to competition had led

to more innovative products,More innovative ways of making onboard

revenueMore added facilities like ice skating rink,

roller coaster, bungee jumping, bowling alley, virtual reality games

Future TrendsMore potential MarketsMore multi-generations, singles going

onboardKids will be going for free at timesMore adventure and expedition cruises for

emerging marketsNew Traveling ConceptsMore theme cruisesMore international spas onboard cruiseMore “homeland” Cruising in US

Future TrendsBetter EntertainmentProduction shows are costing more from

US$500.000 to 1 million with performers’pay, costume, cleaning and repair, backdrops, lightings, music & orchestra, royalties.

Future challenges of cruise shipTerrorist attacks & political unrest around the

world may dispute industry revenues againOver-capacity: The substantial growth & profits

cruise lines during the 1990s spurred the investors to build more and bigger ships at an increasing rate

How to find a way to increase the growth in passenger booking to fill the growing capacity & recoup the huge investment in new ships.

High competitiveness: The cruise ship industry is highly concentrated & dominated by large companies (Carnival, Royal Caribbean, North America)

Evolution of New Cruise conceptsCompete with Size, FacilitiesLarger Cabins, VerandasMore Dining OptionsNew Concepts like spa, golfMore entertainment, sportsInnovative Enrichment

ProgramExciting Shore ExcursionFreestyle Cruising

Thank you!