Created by MBA ITB 46A

1. Carnival Cruise
Lines
Syndicate 5 :
Ria Agustriana 29111321
Agung Mahendra
29111324
Rangga Tri Raeros
29111314
Joseph Enrico
29111349
Karina Soedjati
29111309

2. Exhibit 1 Annual Passengers
Year Carnival CLIA Lines
Passegers Anual Passegers Anual
Carried Growth Carried Growth
1994 1035037 15,33% 4448000 -0,71%
1995 1185588 14,55% 4378000 -1,57%
1996 1343356 13,31% 4656000 6,35%
1997 1517330 12,95% 5051000 8,48%
1998 1535359 1,19% 5428000 7,46%
1999 1837764 19,7% 5894000 8,59%
2000 2044563 11,25% 6882000 16,76%
2001 2290801 12,04% 6906000 0,35%
2002 2482231 8,36% 7640000 10,63%
2003 2854476 15% 8300000 8,64%
2004 3037948 6,43% 8980000 8,19%

3. Exhibit 2 The Fleet
Class of
Ship Ship Year Launched Gross Tonnage Staterooms Double Occupancy
1 Holiday Holiday 1985 46052 743 1452
2 Celebration Holiday 1987 47262 743 1486
3 Fantasy Fantasy 1990 70367 1026 2056
4 Ecstasy Fantasy 1991 70367 1026 2052
5 Sensation Fantasy 1993 70367 1026 2052
6 Fascination Fantasy 1994 70367 1026 2052
7 Imagination Fantasy 1995 70367 1026 2052
8 Inspiration Fantasy 1996 70367 1026 2052
9 Carnival Destiny Destiny 1996 101353 1321 2642
10 Elation Fantasy 1998 70367 1021 2052
11 Paradise Fantasy 1998 70367 1026 2052
12 Carnival Triumph Triumph 1999 101509 1379 2758
13 Carnival Victory Triumph 2000 101509 1379 2758
14 Carnival Spirit Spirit 2001 88500 1062 2124
15 Carnival Pride Spirit 2002 88500 1062 2124
16 Carnival Legend Spirit 2002 88500 1062 2124
17 Carnival Conquest Conquest 2002 110000 1487 2974
18 Carnival Glory Conquest 2003 110000 1487 2974
19 Carnival Miracle Spirit 2004 88500 1062 2124
20 Carnival Valor Conquest 2004 110000 1487 2974

4. From the exhibit 1& 2 :
 In winter 2004, more than 3 million
passengers would sail with Carnival
 Carnival, launch 110.000 ton, 2974
passenger Carnival Valor, the 20th
ship.
 2005, Carnival Liberty joined the
fleet, Carnival’s capacity lead the
industry.
 Buyback, $1 billion stock and 20%
quarterly dividen increase to $0,15 /

5. The Cruise Industry
2004, projected
1970, carried
more than 10 million
500.000 passengers
guest
Dickinson : 300 Dickinson noted,
millions person only 16% of the
trips/year. We North American
carried 3 million market had ever
guest cruised

6. Industry Evolution
 Mid 1960s, shifted to pleasure cruising
 The ships carried 1800 to 3800
passengers.
 70 brands serving the North American
market since 1960s.
 Carnival Corporation, Royal Carribean
International Ltd, Star Cruise dominate
nearly 95% of the market.
 Carnival Corporation became the
largest cruise company in the world

7. Exhibit 3 North American Cruise
Capacity & Market
Positioning, 2004
Carnival Corporation
Ships Double Occupancy Market Share Market Positioning
Carnival Cruise Lines 20 44934 23,20% Contemporary
Princess 14 28050 14,50% Premium
Holland America Line 12 16937 8,80% Premium
Costa Cruises 2 4224 2,20% Contemporary
Cunard Line 2 4411 2,30% Luxury
Womdstar Cruises 3 604 0,30% Destination
Yachts of Seabourn 3 624 0,30% Luxury
Total: 56 99784 51,60%
Royal Caribbean International
Royal Caribbean International 19 45570 23,50% Contemporary
Celebrity Cruises 10 16116 8,30% Premium
Total: 29 61686 31,90%
Star Cruises
Norwegian Cruise Line 10 17890 9,20% Contemporary
Orient Lines 1 845 0,40% Destination
Total: 11 18735 9,70%
Other CLIA-affiliated brands
Crystal Cruises 3 2960 1,50% Luxury
Disney Cruises Line 2 1754 0,90% Contemporary
MSC Cruise 2 3180 1,60% Contemporary
Oceania Cruise 2 1368 0,70% Premium
Radisson Seven Seas Cruises 6 2764 1,40% Luxury
Silversea Cruises 4 1356 0,70% Luxury
Total 19 13382 6,90%
Grand Total 115 193587

8.  Target :
- Contemporary (Mass Market)
- Premium
- Destination (Specialty)
- Luxury
• Since 1990, more than 130 ships were
launched, increase the industry 20%.

9. Carnival Cruise Line
 The Carnival Corporation portfolio of 12
cruiselines and 75 ships covered each of
the four North America market segment.
 Carried 60000 passengers.
Seabourn, 21000 passenger/year.
 Ted Arison was launching Carnival in
1972.
 Carnival “Fun Ships” started because
they want everybody had fun. It were
designed to include a wide range of
activities and options for guests.

10. Overall Cruiser Customer
According Cruise Lines International
Association (CLIA) :
Average cruiser was 50 years
old, income $99000/year.
78% already married and sailed with
their spouses
54% had taken their first cruise within 5
years and took 2,6 cruises in this period

11. The Carnival Customer
According Cruise Lines International
Association (CLIA) :
The age : 55 (24%), 35 & 55 (40%), 35 or
younger (36%)
The Product : Families, singles, honeymooners
& multigenerational families.
Income cruiser : $65000
Carried 55% of married passenger
Promotion : TV, newspapers & direct marketing

12. Distributing The Carnival Product
Travel
Direct
Agents
Inbound :
The vital external sales but - 1-800-Carnival and
also the expensive carnival.com
(Commison of 10%) - Only few customer booked
online,
Outbound :
The agent’s commision one - Personal Vacation Planners
of the largest individual line (PVPs), is a separate
items on a cruise’s profit and division
loss statement - Proven to be an effective
sales

13. Delivering the Carnival
Experience
 Guest typical booking time:
◦ 3-5 months before
◦ Last-minute
 Information source for guests:
◦ Web
◦ Travel agents

14. Delivering the Carnival
Experience
 Carnival didn’t get complete guest
information from travel agents
 Carnival get guest information from the
Fun Pass
 Carnival’s vision is to provide quality
service that exceed the expectations of
the guests
 Average cruiser spend $30-$50 per day
on board, excluding gratituities
 E-commerce applications includes
precruise online sign-up for shore
excursions and spa appointments

15. Sail & Sign Card
 Pass to board / debark the ship
 Sign-up for excursions
 As a credit card on the board

16. Carnival’s Information
Systems
 275 employees shoreside and 45
shipboard IS managers
 Accumulated 2 years of individual
voyage data
 Use data for pricing decisions and
measure travel agents’ performance
 On-board applications:
◦ Property Management System (PMS)
◦ Point of Sale (POS)  Fun Sales System
(FSS)

17. The Potential Value of Customer
Data
 Loyalty programs:
◦ Redeemable cruise points
◦ Recognition card
 Fear that loyalty spending may yield
low return
 Consumer Response System (CRS)
to track service recovery efforts for
complains

18. Partial Organizational Chart
(from exhibit 5)
Bob Dickinson
President and CEO
Brendan
Paul Vicki Freed Natko Nincevic
Roberta Jacoby Corrigan Myles Cyr
Zacharsky Senior VP Senior VP
Senior VP Corp Senior VP VP & Chief
Senior VP Marketing&Sal Hotel
Training Cruise Information Officer
Finance es Operations
Operations
Dwayne
Onboard
Onboard Hotel Warner
Captains,
Directors VP Strategic
Pursars
Automation
Brenda
Edie Bornstein Maurice Terry Thornton Christine Arnholt
Yester
VP Business Zarmati VP Marketing VP Marketing
VP Revenue
Development VP Sales Planning Services
Management
Shannon Balliet- Diana Rodriguez-
Mike Hunssinger Velazquez
Antorcha
Manager Revenue Director Database and
Manager Revenue
Enhancement Internet Marketing
Enhancement

19. Carnival Corporation and PLC
Cruise Brands
(from exhibit 6)
North America
Double Occupancy Amount
Europe
United
Kingdom
Australia
Germany

20. Typical Activities Available on a
Carnival Cruise
(from exhibit 7)
 Photo Gallery  The Web Internet
 Travelog Cafe
 Formalities  Funship Airbrushed
 Shore Excursions Tattoos
 Shops on Board  Spa Carnival
 Shogun Club  Gym
Casino  Theatre
 Park West Art  Music and Dancing
Auction  Activities Schedule
 Carnival Golf.com

21. Principal Shoreside Software
Systems
(from exhibit 8)
 Oracle Financials
 Reservations
 Revenue Accounting
 Cornerstone
 Lawson
 I2
 Carnival.com

22. Principal Shipboard Software
Systems
(from exhibit 8)
 Shipboard Property Management System (SPMS)
 Fun Ship Sales (FSS)
 Silverware
 Iverson
 Ocean Player Club
 Concession Systems
 Consumer Response System (CRS)
 Interactive Television
 Crew Personal System (CPS)
 Crew Pay Gratuity (CPG)
 Fun Time
 Info SHIPsql
 VingCard Door Lock

23. Financial Analysis
(from exhibit 4)
Summary of Balance Sheets (millions of US$)
2004 2003
Current Assets 643 610
Total Assets 27,635 24,491
Current Liabilities 5,034 3,310
Total Liabilities 11,876 10,698
Total Equity 15,760 13,793
Total Equity and Liabilities 27,636 24,491
Summary of Income Statements (millions of US$)
2004 2003 2002 2001 2000
Revenue 9,729 6,718 4,383 4,549 3,779
Gross Profit 5,483 3,838 2,619 2,661 1,720
EBIT 2,168 1,391 1,038 1,001 991
Summary of Statement of Cash flows (millions of US$)
NAT 2004
1,854 2003
1,194 2002
1,016 926 965
CF from Operating activity 3,216 1,933 1,469
CF from Investing activity -3,089 -2,433 -2,061
CF from Financing activity -79 826 -198

24. Financial Analysis
(from exhibit 4)
Ratio Analysis
2004 2003 2002 2001 2000 Comment
Current Ratio 0.127731 0.18429 OK
Total Asset turnover 0.351981 0.274305 Good
Debt to Total Asset ratio 0.429745 0.436814 OK
Debt to Equity ratio 0.753553 0.775611 OK
Gross Income Margin 0.563573 0.571301 0.597536 0.584964 0.455147 OK
Operation Income Margin 0.222839 0.207056 0.236824 0.220048 0.262239 OK
Net Income Margin 0.190564 0.177731 0.231805 0.203561 0.255359 OK
EPS 2.31 1.66 1.76 1.82 1.61 Good
DPS 0.53 0.44 0.42 0.42 0.42 Good
ROE 0.11764 0.086566 Good
ROA 0.067089 0.048753 Good

25. SWOT Analysis
Strengths
• Carnival is the largest cruise line in the world
• Higher market share than its competitors
• It is the most popular choice among customers who
think of a cruise vacation
• 98% guest satisfaction rating
• Carnival has acquired several companies in different
market segments of the cruise industry
• Has a good relationship with many travel agents
• Offer many interesting facilities and entertainment
programs on board
• E-commerce application and Sail & Sign card to
facilitate the guests

26. SWOT Analysis
Weaknesses
• Customer loyalty was low
• Relied heavily on travel agents
• Aggresive direct marketing could affect relationship
with travel agents
• Less effort to create customer’s loyalty
• Didn’t have enough consumer data

27. SWOT Analysis
Opportunities
• The cruise industry appeals to a broad range
of demographic groups
• Large untapped market of people that have not cruised
of 84%
• Many of the potential passengers have expressed
interest in taking a cruise as a vacation alternative
• Strong annual growth
• Offer more destinations
• Expand to other countries like Asia

28. SWOT Analysis
Threats
• There are threats from diseases like SARS and
other epidemic health concerns in areas where the
company does business
• Hurricane and bad weather
• Seasonal demand
• Changes in Government regulations (in areas of
ports, customs, labor, immigration, gambling, security
etc)could impact the company’s financial position
negatively
• Tight competition

29. Recommendation
 The customer data could be used to enhance the customer's
experience by doing the following:
 Based on age and marital status of customers, special suitable
activities can be offered, like excursions and spa services for couple
 For repeat guests, offer special discount on their favorite drinks
from the previous visit
 Customer feedback from Customer Response System can be useful
to make the necessary adjustments to the quality of service, and to
retain the customer
 Offer a birthday or anniversary package, with special discount or
special gift
 Create a seasonal themed cruise vacation like
Haloween, Valentine, Christmas, etc
 Create a special embarkation line for repeat guests
 Send informational or promotional e-mail based on the guests’
travel pattern, preferences, and on-board purchases
 Add new on-board facility and entertainment to attract more guest