$elling the $ea - Book Review

This is a fascinating account of the US-based Cruise business. Now in its second edition, the authors contrast their views of a decade ago with where the business is today. The strongest part of the book in my view is the discussion of the different ways the cruise lines have built - and plan to continue to build their businesses. Interestingly the clarity of the strategic thinking varies from the clear and focussed (Carnival) to some other, weaker, waffle.

Reading this it becomes clear that Carnival's growth to number one has been no accident. Other parts of the book are not as strong (the history section has some schoolboy howlers) or not as interesting to this reader (how to run a Travel Agency). Nonetheless, an invaluable insight into the cruise business, and a lot better than some of the other gossip-driven 'histories' out there.

I found one of the most interesting parts of $elling the $ea the section where each cruise line was given the opportunity to discuss what made them different in the marketplace - one that's not infrequently called 'homogenous'. What was also interesting was the differing quality (in my view) of the clarity of the strategic thinking - with Carnival being the best focussed, and a few others frankly poor. Brief precis:

RCCL: focus on product (rock walls, surf machines) 40% first timers, larger ships offer greater diversity of experiences for multi-generational family vacation (grans to teens to tots).

NCL: We're third in NA, aim to stay that way. Make sure hardware isn't disadvantaged, aim for premium vs RCCL/Princess. Freestyle competitive advantage vs traditional 'two sitting' which is hangover from original Caribbean cruises converted liners - so get hardware right - based on hotels, not liners. At the time high hopes for American crewed US flagged cruising....

Carnival - most focussed of the lot. Lowest cost producer via economies of scale. Focus on 'vacation' market - not 'cruise' market (its 20-30 times larger). 48% first timers - vs balance industry around 30%. Care what 'vacationers' want - their vacationers want to have 'fun'. Other lines offer 'elegant/exclusive' = Palm Beach - classy but small - Carnival's competition is Las Vegas and Orlando (which would explain the decor) Carry more families than competition. Carnival best value as low price and good product - reinvest in things that vacationers will notice, other costs keep driving down, but re-invest where vacationer will notice it.

Disney - Disney experience on a ship. (So is their competition Disney experience on land??) Keep the children out of sight. Differentiation - 'no casino'. Does not feel that focussed - its an extension of the Disney franchise - but I wonder who they aim to grow business from.

Costa - ITALIAN!!! Also more diverse itineraries- eg South America.

MSC - ITALIAN! Fast expansion - heirs to Sitmar/Home lines.

Celebrity - 'extraordinary service/best in class cuisine/stylish environment' and motherhood and apple pie..... Target boomers - lots of focus on how they want to get message across, rather how they are different. One of the weaker ones.

HAL - in between luxury and mass - 'everybody's a competitor'. More itineraries, more spacious vessels, cuisine reflects destination focus. Indonesian crew. Target market experienced cruisers. Another not that strong strategy, in my view.

Princess - 'premium cruise product at affordable prices' Balcony leader - youngest fleet - 'big ship choice - small ship feel' (aka pokey public rooms) Anytime vs traditional dining meets needs of cruisers. Primary target experienced cruisers - Princess and others - first timers like to try out near home.

Cunard - 'most famous ocean liners in the world' - tradition minded travellers - mature refined customers - product advantage - widest breadth of accommodation. She doesn't say it, but clearly 'niche'.

Crystal: 'best in the luxury service business, not just the cruise industry'. Highest staff-passenger ratio in industry and low staff turnover.

To me the most compelling strategy is Carnivals - they have thought 'outside the box' and are aiming for a much bigger target than most of the lines who seem content to swap cruisers amongst themselves. They also have a very clear idea of what they are going to do, and how they are going to make money doing it. RCCL and Princess are not bad, NCL looks as though a major element has come unstuck. Celebrity and HAL waffle.

I am not entirely sure about this - although I've not been on a Costa cruise a friend has. My impression is that it is the Italy known to ignorant North Americans (so clearly not those on this board) and would be as foreign to an Italian as Mongolia is to me.

Is this fair? If so, does it suggest Marketing over substance - yet again?

Matthew

Is this fair? If so, does it suggest Marketing over substance - yet again? Matthew

I have not been on Costa either - but I think most of their business is European based, and of that, Italian - so I guess its nearer the 'Italian' version of Italy than anyone elses.

Just like Cunard is the American version of 'British' - hence all the fretting about "class" - America of course firmly believes itself to be 'classless' - despite having a dynastic Presidency and the greatest income disparities in the world!

Peter

I've not been on a Costa cruise...My impression is that it is the Italy known to ignorant North Americans... and would be as foreign to an Italian as Mongolia is to me.

 

Is this fair?

Matthew

You are correct.

I have not been on Costa either - but I think most of their business is European based, and of that, Italian - so I guess its nearer the 'Italian' version of Italy than anyone elses.

I would assume MSC to be the most 'Italian' version. While their new ships also resemble the huge Amercian players more and more, the degeneration of the Carnival owned Costa with its Carnival designed ships seems to have been very quicky.

Interesting book Peter...thanks for the analysis. I just ordered "Devils On The Deep Blue Sea" (the building of the cruise ship empires) last night and looked at this one too....after what you've outlined I might just call and add it to my order.

Thanks, Penny

Penny’s Affair to Remember QM2 Review

http://boards.cruisecritic.com/showthread.php?t=471053

November 10,2007...the “Affair” continues....

Interesting book Peter...thanks for the analysis. I just ordered "Devils On The Deep Blue Sea" (the building of the cruise ship empires) last night and looked at this one too....after what you've outlined I might just call and add it to my order.

Penny,

My personal taste - but $elling the $ea is much better - 'Devils' is an anecdotal business history which coincidentally happens to be about the cruise business - if you enjoy that, then fine - but I felt it could have been much better. There is absolutely no exploration of the business strategies behind the growth of the businesses - which I reckon is pretty fundamental to understanding it. New ships are 'new' or 'bigger' - no explanation of why.....

Peter

I am not entirely sure about this - although I've not been on a Costa cruise a friend has. My impression is that it is the Italy known to ignorant North Americans (so clearly not those on this board) and would be as foreign to an Italian as Mongolia is to me.

 

 

Matthew

I was on a Costa ship on the Genoa-Venice run. It was shortly aftre 9/11 and there were only 42 Americans onboard! We were vastly outnumbered by the 1500 Italians! It was kind of neat having an English speaking hostess to look after us. I was amazed at how poor the food was. The Classica did have 4 single occupancy cabins at that time, conveniently located right below the entrance to the dining room so that Granny didn't have far to walk for her meals.

Julia

I really enjoyed reading Dickinson's (now about to retire) take on what fuels the cruise industry. It does lean heavily towards the Arison/Carnival philosophy of how to leverage a deal and turn a profit. And...they do it very well.

Costa seems to be Carnival's take on what Italy should be like and, you were right, the food surely doesn't compare to what you'll find in most good Italian restaurants. More like Olive Garden meets Ruby Tuesday's.

If you like cruise-related books, I'd recommend 'Cruise Ship Blues - The Underside of the Cruise Industry'. Another good look behind the 'Crew Only' door.

If you like cruise-related books, I'd recommend 'Cruise Ship Blues - The Underside of the Cruise Industry'. Another good look behind the 'Crew Only' door.

That I would not recommend - it's written by a professor of sociology who has appointed himself as a "cruise expert" (and even testified against the cruise industry before Congress as such!), essentially on the basis that he has taken a lot of cruises.

Some years ago he was on a cruise on the RADISSON DIAMOND and had a bit of a problem with the attitude of one of the bartenders. When RSSC refused to give him compensation or fire said bartender for allegedly being rude to Dr. Klein (!), he went on his current crusade against the cruise industry, and he has somehow managed to succeed with the help of some maritime unions and various associations of "cruise victims".

I wouldn't put the tiniest amount of trust in anything this guy says - he is hell-bent against the cruise industry and will say and do just about anything to make it sound bad.

Just like Cunard is the American version of 'British' - hence all the fretting about "class" - America of course firmly believes itself to be 'classless' - despite having a dynastic Presidency and the greatest income disparities in the world!

 

Peter

Dude, whats the deal. The thread is about a book review and cruise line strategies. Your comment above does not belong here.

Cheers

Dude, whats the deal. The thread is about a book review and cruise line strategies. Your comment above does not belong here.

Cheers

So good you said it thrice! The thread is about cruise line differentiation and a question was raised whether 'Costa' is 'Italian' - and by extension, since this is the Cunard board, a discussion of whether Cunard is 'British' or 'America's vision of Britain' (which it is - and has been for some time) is certainly pertinent. The extension of 'class' into that is also pertinent as American (but very rarely British) posters frequently fret about Cunard's 'class distinction' - often from the unspoken assumption that 'class distinction' is a British phenomenon, wholly absent in America (despite the evidence to the contrary). Remind me, your point on cruise line business strategies was.....;)

Dude, whats the deal. The thread is about a book review and cruise line strategies. Your comment above does not belong here.

 

Cheers

Who`s this Dude ? :D

Who`s this Dude ? :D

guernseyguy. I would have thought that obvious mate.

guernseyguy. I would have thought that obvious mate.

This is Gav Boy not guernseyguy ! :eek:

This is Gav Boy not guernseyguy ! :eek:

No, I am 'dude' and you are 'mate' - do keep up! Still not clear what the bloke's (Nepcib) point of view on the thread topic is though!

No, I am 'dude' and you are 'mate' - do keep up! Still not clear what the bloke's (Nepcib) point of view on the thread topic is though!

Sorry Dude :) your mate Gav ! ;)

Sorry Dude :) your mate Gav ! ;)

No worries.

No worries.

No, you are 'bloke'.....oh do pay attention!;)

No, you are 'bloke'.....oh do pay attention!;)

Hmm, I wonder who was Best Boy at school?<img>

No, you are 'bloke'.....oh do pay attention!;)

Well im confused ! :confused: :eek:

Hmm, I wonder who was Best Boy at school?<img>

Dunno - didn't have any at the school I went to - now what was the topic of your first post on this thread?:rolleyes:

Just like Cunard is the American version of 'British' - hence all the fretting about "class" - America of course firmly believes itself to be 'classless' - despite having a dynastic Presidency and the greatest income disparities in the world!

 

Peter

Dude, whats the deal. The thread is about a book review and cruise line strategies. Your comment above does not belong here.

Cheers

Dude, whats the deal. The thread is about a book review and cruise line strategies. Your comment above does not belong here.

 

Cheers

Oh no groundhog day ! :eek:

Oh no groundhog day ! :eek:

Dude, whats the deal. The thread is about a book review and cruise line strategies. Your comment above does not belong here.

Cheers