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

Are We on the “Fun Ship” Yet?

Chapter One

Case

Case 1-2Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

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 1-3Copyright © 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 1-4Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

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 1-5Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

The Overseas Environment

• Political Issues

• Health Issues

• Economic Issues

• Weather

Case 1-6Copyright © 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.