The President of Carnival Cruise Lines discusses his company\u27s philosophy and operations as they relate to the  Fun Ship  cruise experience. Carnival, the world\u27s largest cruise line, is positioned as a model in the business

Dickinson, Robert H.

English

DigitalCommons@Florida International University

Hospitality ReviewVolume 13Issue 1 Hospitality Review Volume 13/Issue 1 Article 1January 1995"Fun Ship" Marketing PhilosophyRobert H. DickinsonCarnival Cruise Lines, null@carnival.comFollow this and additional works at: https://digitalcommons.fiu.edu/hospitalityreviewPart of the Hospitality Administration and Management CommonsThis work is brought to you for free and open access by FIU Digital Commons. It has been accepted for inclusion in Hospitality Review by anauthorized administrator of FIU Digital Commons. For more information, please contact dcc@fiu.edu.Recommended CitationDickinson, Robert H. (1995) ""Fun Ship" Marketing Philosophy," Hospitality Review: Vol. 13 : Iss. 1 , Article 1.Available at: https://digitalcommons.fiu.edu/hospitalityreview/vol13/iss1/1"Fun Ship" Marketing PhilosophyAbstractThe President of Carnival Cruise Lines discusses his company's philosophy and operations as they relate tothe "Fun Ship" cruise experience. Carnival, the world's largest cruise line, is positioned as a model in thebusiness.KeywordsRobert Dickinson, CruiseThis article is available in Hospitality Review: https://digitalcommons.fiu.edu/hospitalityreview/vol13/iss1/1"Fun Ship" Marketing Philosophy by Robert H. Dickinson The President of Carnival Cruise Lines discusses his company's philosophy and operations as they relate to the "Fun Ship" cruise experience. Carnival, the world's largest cruise line, is positioned as a model in the business. What makes Garnival Cruise Lines "The Most Popular Cruise Line in the World? Sm We've got the fun! Only Carnival offers the "Fun Ship" cruise experience. Since the early 1970s, we have been market- ing our "Fun Ships" as destinations in themselves, with the ports of call as secondary considerations. This continues to be a unique approach in the cruise industry as other cruise line competition emphasizes the ports of call and dwells less on the shipboard experience. Our decision to be different is predi- cated on the fact that 94 percent of the American population has never taken a cruise before. Therefore, they have no direct experience of what cruising is all about. By emphasizing the ship itself as the desti- nation, we discipline our marketing to focus on both the shipboard experience and the vacation benefits that appeal to the consumer. Taking advantage of our large ships, we've developed a shipboard product that provides a wider variety of activity and entertainment choices throughout each day and evening and throughout the length of the cruise than anything available to the consumer in an alterna- tive land-based resort or comparable cruise vacation. We emphasize variety and choice because we recognize that  our guests will inevitably have a wide range of preferences. Further, we recognize that people's moods vary within the time framework of a three-, four-, or seven-day cruise. Accordingly, if guests have enough options avail- able to them at all times, they will always feel entertained and pam- pered-never bored. Of course, another vital option for guests is to do nothing at all. Unlike some land-based resorts, no Carnival guest is cajoled or coerced into participating in any activity. The choice is theirs to do as much or as little as they want, when they want to. This freedom of choice is a critical ingredient in the enjoyment of one's vacation time. Spring 1995 1 FIU Hospitality Review, Volume 13, Number 1, 1995Contents © 1995 by FIU Hospitality Review. The reproduction of any artwork,editorial or other material is expressly prohibited without writtenpermission from the publisher.Because we have been marketing our cruise ships as "Fun Ships," our guests come on board with a clear anticipation of having fun and enjoying themselves. This creates a self-fulfilling prophecy as the expectation of fun, relaxation, and conviviality generates fun, relax- ation, and conviviality. In fact, when we counsel travel agents as to what kind of clientele to send on a Carnival cruise, we admonish them not to send us curmudgeons, on the theory that one bad apple can spoil the bunch! Passengers Are Diverse Apart from the expectation of h, it is important that our passen- gers represent a wide diversity of geographic, demographic, and psy- chographic characteristics. The broad geographic dispersion of our passengers assures people that they will meet folks from their area of the U.S. and Canada-no matter where that area is. Also, they are assured that they will meet interesting people from all other areas as well. This same phenomenon holds true for age, educational back- ground, lifestyle, profession, etc. Because there is no regimentation on board the vessel, people are free to either mix and mingle or keep to themselves as they choose. From long experience, it is virtually inevitable that people will develop new and fascinating friendships on board the "Fun Ships." A unique camaraderie develops among guests as the cruise progresses. Our Carnival crew members work very hard to encourage this friendly atmosphere in subtle but effective ways. For example, by design, cruise staff members lead double lives as entertainers, relish- ing the applause and appreciation of the audience. Because they dou- ble as cruise staff members during the day, you can be assured that they are as friendly and helpful as possible with the guests who form their audiences at night. Cruise Separates Passengers from Hassles Beyond the efforts of the crew, however, an almost mystical trans- formation of the guest occurs when any of our enormous ships drops its lines and heads out to sea. Whether it is the guest's first cruise or his fiftieth, a pleasant, almost subconscious, sense of separation from the daily cares that the "land" represents begins to evolve. This sepa- ration from the hustle, bustle, and hassle of the work-a-day world allows people to really unwind, relax, and become refreshed. Without the ties to land, they can become and act as they want to-shaking off the strictures and stereotypes of the routines of the normal world. This is a critical element for deriving the maximum enjoyment from one's vacation. The "I've got to get away" feeling that people associate with the need for a vacation transcends merely spatial considerations. The psyche has to get away as well. The mind and spirit need to rest, recharge, and grow. FIU Hospitality Review FIU Hospitality Review, Volume 13, Number 1, 1995Contents © 1995 by FIU Hospitality Review. The reproduction of any artwork,editorial or other material is expressly prohibited without writtenpermission from the publisher.Exit interviews of Carnival guests typically point to the fact that the cruise had a dramatic impact on them-far surpassing that of mundane land-based resorts or sightseeing destinations. Admittedly, this impact runs the continuum from a carefree non-stop party to the life-transforming process of taking stock of one's self and setting or reaffirming career and personal goals. It is generally recognized in the travel industry that cruising enjoys the highest customer-satisfaction rating of any vacation alter- native. Studies suggest that 85 percent of returning cruise passengers are completely satisfied with their vacation experience. Every Carnival guest is encouraged to fill out a comment card which is used internally as a report card, both to measure perfor- mance of key elements of the cruise (dining room service, food, enter- tainment, etc.), as well as total customer satisfaction. Not surprising- ly, all Carnival "Fun Ships" score extremely high. For example, the percentage of guests who respond favorably to the question, "In gen- eral, did you enjoy your cruise?," is in the 97 to 100-percent range on virtually every voyage. Bearing in mind that the key ingredient in the product specifica- tion of a "Fun Ship" cruise experience is a diverse mix of people who share the common expectation of a f i n  vacation, the challenge then, from a marketing standpoint, is to present this cruise experience in a way that achieves this objective. The advertising priority is to describe the appeals of the "Fun Ship" cruise experience itself. Consequently, our ads typically show people and talk about the things that happen aboard our "Fun Ships." This is very different from most cruise advertising that tends to emphasize ports of call with a photo- graph or an exterior shot of the ship in a compelling destination. At Carnival, we prefer to show people having a good time on board in our ads, because our "Fun Ships" are destinations in themselves. The ports of call are the icing on the cake! Advertising Promotes Concept of Fun Recognizing that 94 percent of the U.S. and Canadian population have never taken a cruise before, these first-time cruisers could have no direct experience of what cruising is all about. Without direct expe- rience to the contrary, myths and misconceptions may arise. For example, research tells us that some people perceive cruising as a confining experience, and even boring! Certainly, this is not the case with Carnival's "Fun Ships." Rather than finesse these misconcep- tions, we attack them head-on in our advertising with references to our very large ships and smorgasbord of activities. For many years, the bulk of our advertising resources had been focused on Sunday travel sections-ver 200 different newspapers each year in towns large and small. Then in 1984, in addition to a vast newspaper commitment, Carnival Cruise Lines introduced a nationwide television advertising campaign-the largest and most extensive in the history of the cruise industry. The campaign utilizes Spring 1995 3 FIU Hospitality Review, Volume 13, Number 1, 1995Contents © 1995 by FIU Hospitality Review. The reproduction of any artwork,editorial or other material is expressly prohibited without writtenpermission from the publisher.our spokesperson, Kathie Lee Gifford, who co-hosts the Live With Regis and Kathie Lee daily television program and frequently appears in television specials. For the past 10 years, her vivacious, sparkling personality has lent itself to the fun message of Carnival Cruise Lines. The campaign has generated billions of viewer impressions. The action and color of television advertising create a vivid portrayal of the "Fun Ship" cruise experience. We have been extremely pleased with the results of this campaign and are committed to its continuance in the years to come. Our news- paper advertising and brochures incorporate Kathie Lee Gifford and our theme, "We've Got the Fun!,"" to provide maximum exposure and message reinforcement. In 1994, Carnival Cruise Lines completed its twentieth consecu- tive year of operating in excess of 100 percent occupancy on an aver- age fleet basis-a record for the industry. Don't worry, we are not renting the life boats! 100 percent occupancy is based on two persons to a cabin. Most ships have cabins that can accommodate three and four persons. This allows for occupancies in excess of 100 percent. Our fleet expansion plans do not allow us to rest on the laurels of this achievement. The introduction of our SuperLiners, the Holiday in 1985, the Jubilee in 1986, and the Celebration in 1987, necessitated attracting twice the number of annual guests in three short years. The addition of our new generation of SuperLiners, beginning with the Fantasy in 1990, the Ecstasy in 1991, the Sensation in 1993, and the Fascination in 1994, results in an additional 80 percent increase in our "Fun Ship" fleet capacity. We are confident we can suc- cessfully continue to grow sufficient consumer demand to keep pace with our expanded capacity. These super new "Fun Ships," represent- ing the state-of-the-art in cruise designs, are strong attractions in themselves. Fleet Expansion Broadens Appeal Moreover, our fleet expansion provides more diversity of itiner- aries, home ports, and vacation lengths to further broaden our appeal. Our deployment of the Fantasy to Port Canaveral, the newest and largest ship to serve that market, is a good example as it now offers cruise and land vacations featuring Walt Disney World and other Central Florida attractions of five-, six-, and seven-day durations in addition to our popular three- and four-day cruises. Each addition to the "Fun Ship" fleet gives us the opportunity to explore different home ports and exciting new itineraries. The inau- gural season of the Fascination began with a first-ever series of cruis- es from New York. Several five-night cruises from New York called at St. John, New Bmswick, and Halifax, Nova Scotia, as well as two full, "hn" days at  sea. Two-night weekend "Fun Ship" mini-cruises featured the Fascination itself as the destination. In October 1994, the Fascination began year-round sailings from her home port of San Juan. She assumed the Dopicale's exotic FIU Hospitality Review FIU Hospitality Review, Volume 13, Number 1, 1995Contents © 1995 by FIU Hospitality Review. The reproduction of any artwork,editorial or other material is expressly prohibited without writtenpermission from the publisher.seven-day Southern Caribbean itinerary. With the Fascination's arrival, the Dopicale features two new itineraries-both including U.S. ports of call. Guests may either board the Dopicale on Sunday for seven-day, round-trip cruises from Tampa, calling a t  Grand Cayman, Cozumel, and New Orleans, or they may embark on Friday in New Orleans for seven-day, round-trip cruises to Tampa, Grand Cayman, and Cozumel. I t  is a unique itinerary pattern that gives both New Orleans and Tampa a year-round, seven-day cruise ship. These two U.S. ports were chosen because both cities have tremen- dous appeal and offer attractive pre-and post-cruise vacation options. Apart from the product itself and our advertising program, anoth- er key element to our marketing is our pricing. The typical cruise line prices its ships with the budget expectation that they will sail with 80 to 85 percent paying occupancy. As a result, for example, the fixed costs and budgeted profit levels are borne by 850 passengers on a ship that carries 1,000. At Carnival, because of our singular history of sales performance, we set our prices at 100 percent paying occupancy In other words, our fixed costs and budgeted profit levels are borne by 1,000 passengers on a ship that carries 1,000. This difference in pric- ing strategy allows us to price our product 15 to 20 percent below other roughly comparable cruise offerings. Our attractive pricing means greater value for the dollar which generates the sales that pro- vide our full occupancy levels. In turn, the high occupancies allow us to offer reduced pricing. In fact, it has been our ability to expand con- sumer demand by attractive pricing and a most satisfying product that has allowed us to grow from a one-ship fleet to the largest cruise line in the world! Because the modern contemporary cruise industry is only about 28 years old, only 17 or so million people in the U.S. and Canada have ever cruised. For Carnival to continue its aggressive growth, it is criti- cal that our product be positioned to appeal to first-time cruisers. After all, the potential first-time cruiser represents over 100 million people in North America. We have been able to accomplish this objec- tive by positioning our product to the widest group of prospective cus- tomers by focusing on cruising as a great vacation for Everyone, with a capital "E." On a fleet-wide basis, 64 percent of our guests are first-time cruis- ers, while 36 percent have cruised before. Within the fleet, this ranges from 85 percent first-time cruisers on the short three- and four-day cruise offerings to 45 percent first timers on the more exotic Southern Caribbean cruises of the Festivale and the Fascination and many sail- ings of our SuperLiners, the Holiday, Jubilee, and Celebration. Importantly, however, more than half our repeat guests have cruised with Carnival before. This is a very gratifying percentage considering the relatively short history of the company; Carnival is much younger than its competitors. This statistic attests to high customer satisfac- tion with our unique vacation product. This, in turn, creates strong, positive word-of-mouth advertising by our satisfied customers. This is Spring 1995 5 FIU Hospitality Review, Volume 13, Number 1, 1995Contents © 1995 by FIU Hospitality Review. The reproduction of any artwork,editorial or other material is expressly prohibited without writtenpermission from the publisher.the most effective element of our marketing program: Enthusiastic, happy Carnival guests sell our "Fun Ships" all over this land, infonn- ing all kinds of people in all ways of life, mirroring and reinforcing the diversity of our guest mix. Their common denominator: the desire to have a terrific vacation in an unstuffy, fun atmosphere at  a price that represents the best vacation value. FIU Hospitality Review - FIU Hospitality Review, Volume 13, Number 1, 1995Contents © 1995 by FIU Hospitality Review. The reproduction of any artwork,editorial or other material is expressly prohibited without writtenpermission from the publisher.

Fun Ship  Marketing Philosophy

https://digitalcommons.fiu.edu/cgi/viewcontent.cgi?article=1233&amp;context=hospitalityreview

Fun Ship Marketing Philosophy

Abstract

Similar works

Full text

Available Versions

DigitalCommons@Florida International University