Strategic Marketing - Case study report: Celebrity Cruise Inc. a taste of luxury

Résumé du document

Celebrity Cruises is a cruise line founded in 1988 by the Greek Chandris Group. In 1997, Celebrity Cruises Ltd. merged with Royal Caribbean International to become Royal Caribbean Cruises Ltd., which operates Celebrity, Royal Caribbean International, Azamara Cruises, Pullmantur Cruises and CDF Croisieres de France. Celebrity brand ships offer onboard, a taste of luxury with aft-glass dining rooms, alternate dining venues, balconies and suite staterooms, large pools and lounging areas, signature bars and lounges, and elegant spas and gyms.

Extraits

[...] Celebrity cruises should then enforce their presence in those countries. Conclusion Celebrity is actually facing some challenges in their operations and strategy. By positioning themselves in a premium market, they attract customers but struggle to really make them loyal. Celebrity also suffers from the important competition in the cruise market. A clear positioning in term of image and service but also a differentiation in their offer (compare to the players”), could help Celebrity to succeed and create a long term competitive advantage. [...]

[...] Critical Factors To gain credibility and market share in the Cruise Line industry, Celebrity Cruises obviously needs to improve if not change some areas of its strategy or operations. The main one would be to define a clear positioning for its potential customers. Their actual positioning is a good way to attract customers for a first stay but those customers having different expectations, there is no chance that you can retain them if you don't deliver what they are looking for. [...]

[...] Maintaining separate the brand‘s marketing and operations of the two companies (Celebrity and Royal Caribbean) after the merger were strategically positive because it allows them to continue to attract different segment while not mixing their “savoir faire”. On the other hands, Celebrity has conducted two other marketing programs which have to be reviewed such as the Captain Club program and the Concierge Class. Indeed, the Captain Club loyalty program not appears very realistic and appropriate when seeing the different level of loyalty awards, for instance a guest needs to cruise more than 11 times to become an elite member. [...]

[...] Solution qualifiers In order to retain customers and increase their profitability, Celebrity has to face some issues but solutions exist. Start capturing business directly through Celebrity's website: With fees up to 16% and a seven month historical booking pattern, travel agencies have definitely found a good business model when it comes to selling cruise trips. Celebrity cruises should concentrate efforts on driving part of the business through their own website. Internal distribution would not only allow cutting on fees and have higher accrued revenue, but it would also avoid frequent customers from surfing and being exposed to competition. [...]

[...] Many lines report that those numbers are increasing, in part due to the growth of multi-generational bookings. At the same time baby-boomers segment is expected to last for at least 15 more years, with a purchasing power that allows them to bring their whole family with them in a cruise tour. Investing in senior facilities might be necessary in order to safely accommodate this segment. Alternative Celebrity main purpose as every company is to remain profitable and expand. They should concentrate on emergent market opportunities in order to differentiate their product and service from the players” such as Carnival or Norwegian Cruise Line. [...]