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Carnival

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by

Nadia Bacchus

on 7 May 2013

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Transcript of Carnival

Carnival Triumph Carnival Splendor On November 8th, 2010, the Carnival Splendor experienced a fire in one of its main engine rooms on the first day of its voyage. Due to a design flaw, the ship’s generators failed and the fire resulted in the loss of all electrical power. The vessel arrived in San Diego on November 11th, via tugboat. No passengers were injured. Carnival Celebration On January 11, 2000, a fire broke out in one of the main engine rooms during the Carnival Celebration's arrival to Jamaica. After docking in Montego Bay, all passengers were flown back to New Orleans. No passengers were injured. Strengths (Internal) • Carnival is the most popular cruise line in America

•Carnival Corp. owns the majority of the North American and International markets of the cruising industry

•Carnival has 24 different ships and 12 major destinations

•Carnival is exempt from paying U.S. federal taxes Weaknesses (Internal) Poor safety record

2010 Carnival Splendor crisis

2012 Carnival Concordia crisis

Carnival’s demonstrated inability to learn from its mistakes Opportunities (External) • Revolutionize safety standards for the company and the cruising industry

• Reach a younger demographic
Via online campaigns
Establish longer-lasting customer loyalty Threats (External) • Media exposure and portrayal of the Triumph crisis

• Competition from Royal Caribbean and Norwegian Cruise Line

• Rising fuel costs

• Diminished consumer faith in cruising as a safe vacation option Major players Stakeholders

Carnival Investors

Carnival Corporation sister brands

Cruising industry Minor players Companies affiliated with Carnival

Carnival workers

Travel agents On the morning of February 10th, 2013, a fire erupted in the engine room of the Carnival Triumph. The fire was immediately extinguished and generators were able to restore partial power, including the ship’s freshwater system and half of the vessel’s sewage system. The disabled cruise ship was left drifting in the Gulf of Mexico for 4 days with more than 4,200 passengers and crew, until docking via tugboats in Mobile, Alabama on February 14th
Most popular cruise brand in the world
"The Fun Ships"
Wide consumer demographic
Singles
Families
Couples
Seniors
24 vessels with 12 major destinations Costa Concordia On January 13th 2012, the Costa Concordia ran aground off the western coast of Italy, resulting in a 50m gash cut into the port side of the ship, which flooded the engine room and created a ship wide power outage. The ship fell to its starboard side. Of the 4,252 people aboard the ship, 32 people were pronounced dead, 64 injured, and 2 missing. Founded in 1972 by Ted Arison
Gerald R. Cahill, Carnival President and CEO Owned and operated by Carnival Corporation & PLC
Mickey Arison, Chairmen and Chief Executive of Carnival Corp.
Serves 10 million guests annuallySister brands include Princess Cruises, Holland America Line, Seabourn, Cunard, AIDA Cruises, Costa Cruises, P&O Cruises, and Ibero Cruises The Triumph Disaster Similarities Differences Conditions on board Social Media exposure Carnival's current position Negative media exposure

Diminished consumer trust

Financial setbacks

Reputation damage Step One: Media Relations & Damage Control Step Two: Customer Relations Triumph passenger reparations
Safety and technological advances
Carnival Sunshine Step Three: Passive Audiences Increased employee benefits program
Travel Agency Convention Post Crisis Plan Carnival Cruise Crisis Audit Saba Youssefzadeh, Cara Cecchini, Nadia Bacchus, Allison Mason, Sofia Ortega, Dane Gulati, Katie Ligon, Nate Jennings
Full transcript