Celebrity Cruises, Inc.: A Taste of Luxury Case Analysis - Research Paper Example

Service Operations Management: Celebrity Cruise Inc. Problems A major problem facing Celebrity Cruise Inc. isfast growth in demand for their services.The growth in its demand does not measure with the services it provides. For the last twenty years, demand growth has been at 8.4 percent. The growth is a threat to the environment as it leads to sanitary problems and pollutions. The table showing the growth is in the appendix at the end of this paper. The growing demand also affects both external and internal security of ships.

As the regulations on environment are tight, the service operations have been forced to respond by disposing waste and innovating engines (Frei, et al. 2004).Celebrity Cruise Inc. has always had technological breakdowns which have led to delay of the passengers. The growing demand has also led to overcrowding and low supplies. These low supplies have led to turning away cruisers. Another problem is that many passengers have missed boarding cruises as a result of inefficient and shoddy procedures and policies.

Another issue facing the Celebrity Cruise Inc. is neglecting of families. Most of the cruisers as they deal with luxury tend to serve single cruisers well compared to families. The cruisers are also faced with the problems of long waits in shops and boutiques. Long waits have discouraged most cruisers as the situation is the opposite of what Celebrity Cruises Inc. associate their ships(Fishman, 2000)Due to the fast growth of this industry, the employed strategy has not been effective.The high demands have outgrown the available ships.

To counter the situation, the operations opt for increasing demand for their services by creating an extra cost on charges. They are deviating from being a commodity to being a business. Their alternatives are either to increase the cost of services with increasing demand or decrease the cost of services for consumers to fill ships. It would be reasonable if the operations sailed with an empty boat than sail with those who have paid low prices (Frei, et al. 2004).It’s logical in the sense that filling rooms with many clients who pay low costs is more expensive than cruising with an empty ship.

The operations service should forgo poor quality for high quality service. For celebrity to increase the willingness of the guest to pay and win their loyalty, one hundred and fifty taste of luxury were tasted caretakers rooms were put in place.Despite all these, the operational features of implementation were not yet in place.Operational modelAmong the services provided by many firms, consumers are very crucial in contribution to quality and cost of service provided. This deviates from other manufacturing contexts, where firms have complete control over the quality and cost.

In such circumstances, firms should manage and design involvement explicitly. Through cultivation of an appropriate environment, harnessing of customers efforts by firms can be beneficial to both customers and firms. If not keenly managed, nevertheless, firms may undergo shooting costs and eroding satisfaction.Therefore, the model above can be applied in managing customers to yield increased profits. AppendicesPAST GROWTH TRENDSPassenger Growth PER YEARActual (000’s)N.A F WORLDWIDE1990 3496 278 37741991 3834 334 41681992 4023 362 4385Service operation management1993 4318 410 47281994 4314 486 48001995 4223 498 47211996 4477 493 49701997 4864 516 53801998 5243 625 58681999 5690 647 63372000 6546 668 72142001 6637 862 74992002 7472 1176 86482003 7990 1536 95262004 8870 1590 104602005 9671 1509 111802006 10078 1928 120062007 10247 2316 125632008 10093 2912 130052009 10198 3244 13442The figure above shows the yearly growth trends of passengers in Celebrity cruise in various locations.

For this case the first column represents the year, second column represents the passengers in North America (N.A), the third column represents passengers from foreign (F) countries while the last column represents worldwide (W) passengers. From this table, a graph has been drawn to illustrate how there has been growth in demand for the Celebrity cruisers. The graph supports the notion that the persistent growth in demand for this cruisers has led to the challenges faced by operations management.

Both appendices illustrate fast growth that out number the available services.References2001 Annual Report, Royal Caribbean Cruises, Ltd. http://media.corporateir.Net/media files/NYS/RCL/reports/RCL_01ar.pdfCharles, F., 2000. Fantastic Voyage. http://www.fastcompany.com/39226/fantastic-voyageFrances, F., Corey, H., & Christian, H., 2004. Celebrity Cruise Inc.: A Taste of Luxury. Harvard Business school publishing.CLIA 2009 Year End Passenger Carryings Report as reported by CLIA member cruise linesonline