Essay on Cruise Operations Management

In the cruise, line industry competition is inevitable between major industries mainly between international cruising companies e.g. Cunard Company and Reagent Seven Seas. The two companies compete intensively in the hope to outmatch one another. Their competitive analysis is based on the number of ships that are fleeted in this cruise company, technology adaptation, economical or not, comfortability, and award of contracts. Regarding competitiveness on the acquisition of new technological fleets the seven seas acquire new fleet ships of new technological improvements almost after every summer. The latest acquisition of this company is the seven seas navigator, which was later, refurbished in 2016, which has large rooms and balcony cruise ships in it. The Cunard Company is not left behind in the ownership of such large vessels including the Queen Elizabeth vessel, which it acquired in 2010, is a cruise ship, and is one of the largest. In the quest to achieve more profits, the two companies have been seen to compete regarding securing favors from the government that would ultimately lead to less competition. In one case, the Cunard secured the ultimate favor of the government by supplying to the government 11 ships during the Crimean war. After this, Atlantic routes were suspended leaving Cunard to operate alone (Vivancos, 2010). It hence emerged as the best-positioned leading carrier of passengers in 1862. Severally seven seas have attempted to access the governments favors by incorporating their needs. Regent Seven Seas boast of one of the most inclusive cruise lines termed as the most inclusive. Inside the cruise ship and for the interest of customer adoption, it has onboard beverages and shore excursions that are included in the fare paid. This has attracted several customers to this cruise ships Cunard has several undeniable offers in its cruise ships including the ability to play football and basketball games inside it. Seven Seas accommodation is termed as the most all suite and is provided only in high levels penthouses and other renowned first class accommodation (Dowling, 2006).

Challenges and Opportunities

The challenges that these companies face are numerous including management issues that result in the misappropriation of funds and leads to losses. Also, the companies face natural catastrophes during their journeys in the ocean resulting in deaths and massive compensation of passengers. This also leaves the ships in damage and wanting expensive repair. Frequent bad press contributes to the downfall of these companies as in the case of 2009 three passenger fall in a three-week period for Cunard (Gibson, 2012). This kind of bad press reflects negatively on the companies. Also included in the challenges is the threat posed by pirates including the Somali pirates in Africa, who taint customers perception of cruising negatively. Finally, rise in the prices of fuel because of the need to curb environmental pollution of Sulphur has to lead to increases in financial expenditure on fuel for the companies (Monroe, 2010). Nevertheless, several opportunities are still viable for the companies. The industry still has space for the improvement in the global vacation market. This expansion would lead to more opportunities for the companies. Also because of the increase in the number of disposable income globally, customers are looking for comfortable cruises as vacation choices these give the companies the opportunity to source for larger cruise lines and ultimately acquire high income. If the companies can get the advantage of the economies of scale and get best prices thanks to the shifting trends of the age group of cruisers and their increase in population. Finally, the unity of the travel companies would encourage more development regarding saving and taking of risks as companies of same nature (Jernigan, 1996).

SWOT Analysis Table

Company Strength Weakness Opportunity Threats

Cunard cruise line The destination awareness of the course of the sea which enhances awareness of the destination

A large number of growing tourists especially in the Chinese market

It has a large number of ships leading to it acquiring one of the largest shares

Lack of technological input in order to know the changes of the course of its travel leading to accidents

Fluctuating target market depending on seasons The opportunity to increase the market

Change in customer perception especially the Asian that need luxury cruises as an option

Shifting trends in cruising industry offering best prices Increased growth in the number of cruise companies

Decreased number of tourists due to natural calamities in the ocean

Bad perception by customers due to bad press after accidents

Presence of pirates in the destinations where the ships go

Reagent seven seas cruise line One of the largest cruise operators leading to increased number of customers

Significant cost advantages over other companies because of its size

Many customers due to modern state of the cruises Reduced net profit over the years

Due to the double-digit decline in the revenues of the US market, it lost its revenue due to overdependence in the market of US. More opportunities in the global vacation market

New kind of customers looking for luxurious cruise ship

Opening of other ports around the world has exposed more opportunities for travel Sealing of loopholes of tax compliance would affect financial statements

Increased prices of fuel due to environmental protection acts

Bad image by customers due to press exposure of incidences during travel

References

Ho, M.S., Monroe, S., Stine, S., Cubitt, D., Glass, R., Madore, H.P., Pinsky, P., Ashley, C. and Caul, E.O., 2010. Viral gastroenteritis aboard a cruise ship. The Lancet, 334(8669), pp.961-965.

Gibson, P 2012, Cruise Operations Management: Hospitality Perspectives, New York: Routledge, eBook Index, EBSCOhost, viewed 18 June 2017.

Dowling, R.K. ed., 2006. Cruise ship tourism. CABI.

Vivancos, R., Keenan, A., Sopwith, W., Smith, K., Quigley, C., Mutton, K., Dardamissis, E., Nichols, G., Harris, J., Gallimore, C. and Verhoef, L., 2010. Norovirus outbreak in a cruise ship sailing around the British Isles: investigation and multi-agency management of an international outbreak. Journal of Infection, 60(6), pp.478-485.

Jernigan, D.B., Hofmann, J., Cetron, M.S., Nuorti, J.P., Fields, B.S., Benson, R.F., Breiman, R.F., Lipman, H.B., Carter, R.J., Genese, C.A. and Paul, S.M., 1996. Outbreak of Legionnaires' disease among cruise ship passengers exposed to a contaminated whirlpool spa. The Lancet, 347(9000), pp.494-499.