CRUISECALM

BY

Ayush - 05

Deepika -13

Vaishnavi - 34

ABOUT THE COMPANY :

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• CRUISECALM is a “quoted company” that operates a fleet of holiday cruise ships, based in portaro, a major city in Norland.
• Portaro offers extensive shipping facilities and a “major business centre
• Currency is N$
• CRUISECALM is “6th” largest company in this industry
• CRUISECALM owns 15 ships
• Its competitors are WAVELYNE and SAILDINE with 11 ships and 9 ships

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Major sources of revenue for CRUISECAM

• Passengers fares
• On board extras 
• Excursions

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Additional revenue sources

• Commission
• Retail

CRUISECALM’S MARKETING

• Biggest challenge the marketing department of cruisecalm is facing is that company is constantly changing its cruises ships. New ships offer new facilities and attractions that must be promoted carefully.
• Cruisecalm also has a significant higher online presence
• Company spends heavily on television advertising, particularly on winter season
• They planned to introduce new ships provides an opportunity to increase cruisecalm’s passenger capacity.

GLOBAL TOURISM

Tourism is a dynamic part of the economy. The global hospitality and tourism industry, which blends the lodging, food, attractions, cultural and travel industries, is the world's largest industry with $4.5 trillion in expenditures generating 212 million jobs.

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ORGANIZATIONAL STRUCTURE

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• Functional type
• Specialization and operational speed
• Segregation

FINANCIAL ANALYSIS

Profit/loss:

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• Revenue has been increased by 165 million$ in the year 2019.
• Forceful increase in the selling and administrative expenses of 35million$ in the year 2019
1. No direct impact on the company
2. They include both fixed and variable cost
• Finance cost – increased by 7million$
• Higher the profit higher the tax rate -11.2million $.

Balance sheet:

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• Increase in the purchase of plant and equipment in the year 2019 - rise in finance cost.
• Current assets:
1. Revenue generated is high hence there is an increase in trade receivables.
2. inventories-purchase of Property, plant and equipment.
• Share capital and share premium are same in both the years.
• 14.3% increase in the retained earnings.
• increase in the investors, and business structure.
• 5.6% rise in Borrowings – because of selling expenses and purchase of property, equipment etc.
• Current deposits – 26% high in the year 2019

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SWOT ANALYSIS

STRENGTHS

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• Listed company
• Ships used are less than 10 years old.
• Variety of cuisines
• Prices for the booking are inclusive
• Strong and loyal customer base
• Passengers from the same country account for 85%
• Close to the airports from embarkation ports

WEAKNESS

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Medical emergencies

Listed company - scrutinized and stringent  

One of the biggest challenges facing Cruisecalm’s Marketing Department is that the company is constantly changing its cruises. New ships and modifications to existing ships offer new facilities and attractions that must be promoted carefully to ensure that they yield the greatest competitive advantage. Cruisecalm also keeps the lists of destinations under review and frequently experiments with new ports of call, again requiring the marketing department to consider how best to promote and advertise those changes. 

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OPPORTUNITIES

• Literary cruises - gaining publishers and sponsors.
• Photography
• Specialty cruises - specific clientele - higher rating.
• Cruises for classes of people
• Adapting as per the customers demands and also different age groups
• Their interest towards the feedback from the customers

THREATS

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• Seasonal changes in weather
• International disputes between countries overseas
• Permissions and government grants
• Personal yachts
• High tides, Fires and Sink
• Terrorism
• Pirate attacks

PESTEL ANALYSIS

PESTEL analysis

�PESTEL analysis is the foolproof plan for business expansion Both new business owners and veterans should include PESTEL analysis in their business plan. PESTEL can help you identify significant changes in the political, economic, social, technological, environmental, legal landscape. And these landscapes will affect your business in the future.

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POLITICAL 

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• Political stability

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• Bureaucracy and corruption

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• Protests / Pressure groups / Governance system

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• Changing policies

ECONOMIC FACTORS

• Inflation / Employment / Interest / Exchange rates
• Business cycle stage

SOCIAL FACTORS

• Equity and power distance 
• Gender roles
• Migration

TECHNICAL FACTORS:

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• Social media marketing

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• Technological Innovations and development level

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• Research and development on technology 

(impact on cost structure / value chain)

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• Shortened product life cycles 

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 ENVIRONMENTAL FACTORS

• Weather and climatic conditions can influence business efficiency
• Attitude towards eco-friendly products
• Renewable technologies

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LEGAL FACTORS

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• Employee protection law

         [ discrimination,health,safety ]

• Consumer protection laws 

[ privacy and security concerns ]

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STRATEGIC ANALYSIS

• MISSION OF THE COMPANY:
• To keep up with the company’s reputation for offering a high-quality service

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• COMPANY STRATEGIES:
• Vast cruise lines
• Pricing algorithm
• Stage live shows
• Passenger feedback
• Greater emphasis on activities for youngsters

INDUSTRY ANALYSIS

• The global cruise industry generates an estimated

$38 billion a year in passenger expenditure and is the fastest growing sector of the tourism industry.

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• In 2017, a record 25.8 million passengers cruised globally.

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• Annual growth rate of 7.4% in the number of worldwide cruise passengers.

• Caribbean islands, cruises constitute more than 50% of the total of tourism arrivals providing jobs through the services supplied by the port and expenditures of passengers and crew.

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• The cruise industry is the fastest-growing category in the leisure travel market.

• Royal Caribbean's new Oasis of the Seas (2009) and sister ship Allure of the Seas (2011) are the largest, widest, tallest, most expensive cruise ships.

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• With some 325 cruise ships plying the international waters, competition remains fierce in the cruise industry.

• Royal Caribbean Cruise Line (RCCL), is a cruise line brand founded in 1968 in Norway.
• Based in Miami, Florida, United States, it is the largest cruise line by revenue and second largest by passengers counts. 
• As of July 2019, the line operates twenty-six ships, including the four largest cruise ships in the world.
• All ships under Royal Caribbean have names ending with the phrase "of the Seas", a theme that began in 1987

RISK ANALYSIS

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• Terrorism
• Aviation industry outweighing
• Only two itineraries
• It presently owns 15 ships, which makes it significantly smaller than its largest rivals, who operate 30 to 110 ships, Regional ties.

Ethical principles

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a)Integrity: service costs more than the price.

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b)objectivity: equal importance.

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c)Confidentiality: there should not be any relation or friendship with passengers.

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d)Professional competence and due care: adequate knowledge on changing policies and migration.