The Overview of the Seabourn Cruise Line Company - Coursework Example

Seabourn Cruise Line Introduction The objective of the essay is to provide detailed information regarding the Seabourn Cruise Line Company that provides tour packages to the travelers through cruise. In this regard, the essay provides historical development of the cruise industry around the world. It also reveals the historical development of Seaboun Cruise Line Company in the competitive era of cruise industry. Moreover, the essay also provides detailed information regarding the market segmentation of the organization in accordance to the different groups of customers in the industry. It also provides the intensity of market competition in this era with regard to cruise industry. Furthermore, the essay also produces the detailed report on the market penetration and the strategies applied to gain maximum market share. It also reveals the extension of business development that the organization has made through developing the destination of the travelers or the customers. Furthermore, it also reveals the onboard cruise operations that are performed by the organization for higher customer satisfaction as well as higher profitability of the organization. In addition, it provides detailed information regarding the departmental management in controlling onboard operational activities for higher customer satisfaction. It also provides detailed report regarding the customer services that the organization offers to its valuable customers. Last but not the least; a conclusion is being drawn in the end that primarily summarizes the facts of the essay and the implications from it. Historical Development Historical Development of Cruise Industry Historically, cruise industry was majorly focused in the transportation of goods from one country to the other. However, in 1818 the first regular passenger cruise was introduced. It was from the United States to England. The prime intention of that cruise was to provide comfort to the passengers, unlike people travelling in Cargo. It was around in the 1830s when the first steamships were introduced in the world. Moreover, during the period of 1850s to 1860s there was a significant development in the cruise industry. Several passenger cruise were introduced that solely carried passengers. Those cruises were more luxurious in nature with the introduction of electric lights, larger deck space and entrainment facilities to the passengers. Furthermore, development had taken place in the 20th century, when Germany introduced the concept of superliner. In this regard, the cruises were built as a luxurious floating hotels travelling from one place to the other. However, in both the World Wars of 20th century a significant disruption was witnessed by the cruise industry. The companies in that period of the two World Wars incurred massive losses. Nevertheless, after the two World Wars, there was an onset of further development in the global cruise industry. In this regard, with the rise of tourism industry people are keen in travelling through luxurious cruises to several island beaches. The Caribbean Islands are the most destined tourist spots that are travelled through the luxurious cruises (Bressona & Logossah, 2008). Historical Development of Seabourn Cruise Line Seabourne Cruise Line Company was established in the year in 1986 by investors from Norway. The prime investor of the company was Atle Brynestad, who was an industrialist. The company was initially named as Signet Cruise Lines, but on account of objection from Signet Oil, the organization was forced to change the name to Seabourne Cruise Line. However, in 1991 Carnival Corporation purchased 25% of the organization’s shares and later in 1996, it was increased to 50%. It was by 2001, when Carnival Corporation has purchased all the remaining shares of the company from the investors of Norway. However, in the same year 2001, the two cruises of the company were sold to the original leading proprietor of the organization, Atle Brynestad namely Seabourne Goddess I and Seabourne Goddess II. Further, in 2011 the organization stopped the operations at Miami, Florida of the United States and transferred it to the Holland America line in Seattle Washington (Seabourn Cruise Line Limited, 2014; Bressona & Logossah, 2008; Perucic, 2007; Vladimir, 1995). Market Segmentation / Competition Market Segmentation Seabourne Cruise Line Company has diverse customer that include individuals from different age groups. It has not only targeted a single segment of customers, but to the most possible segments. In this regard, the organization has also segmented its product as per the demand of the targeted customers. However, it has been observed that the organization has a large customer base comprising of the younger groups. A major percentage of customers of the organization are under the age of 35. Moreover, it has also been observed that a similar number of customers are also in the age range between 35 to 55 years. Nevertheless, the organization also has a good and satisfying number of customers, who are above 55 years. In accordance to the customers’ demands and needs for these age groups, the organization has also segmented its product. It has been observed that the senior travelers have higher preference in traveling in the warmer seasons. It is also noted that the senior citizens prefer more travelling after retirements. The prime need for such groups of people is to travel with higher safety and security. The company has also segmented its product on the basis of such age groups of people that primarily focuses on safety and security along with the comfort in the travel (Seabourn Cruise Line Limited, 2014; Di Foggia & Lazzarotti, 2013; Vladimir, 1995). Besides the age groups, Seabourne Cruise Line has also segmented the market on the basis of number of people travelling together. In this regard, the organization has segmented its product as per the need and demand of family members, mitigating the demand for two generations of people. It has also segmented its product on the basis of multigenerational families travelling together. The company has undertaken steps to accommodate that large number of family members to stay together. The arrangements are also made so that the organization caters the demand and need of all the age groups. Furthermore, the organization also has segmented the market on the basis of single travelers. All the arrangements and accommodations are made accordingly such that the organization would suffice the needs and demands of travelers who preferred to travel alone or single. It has also segmented its product on the basis of the needs and demands of the couples that are travelling for honeymoon (Seabourn Cruise Line Limited, 2014; Di Foggia & Lazzarotti, 2013; Vladimir, 1995). Moreover, Seabourne Cruise Line has also segmented the market on the basis of the target market. In this regard, the organization has segmented the market to attract the online travel bloggers. It has been observed that most of the people of the present era seek to travel in holiday destination through luxury cruises prefer to book their tour through online. On attracting such segment of customers, the organization has undertaken strategies to build its websites accordingly. The website contains all the detailed information regarding the organization and the services that the customers would enjoy on the journey. Moreover, information regarding the price of each of the categories of products is mentioned in details. This attempt of segmenting such groups of customers has been highly effective in attracting the target customers and promoting the product effectively. Besides this, the organization has also segmented the market to bring new strategies and product modification that would attract the new customers and retain the existing customers. Segmentation of the market is highly essential as per the new customers. This is because as the organization is expanding and entering new markets, the organization has simultaneously obtaining new customers. These new customers on account of different cultures and ideologies have different demands and needs as compare to the existing customers of the organization. Thus, it is very important for the organization to segment its product as per the needs of such new customers and hence, attract these new customers for the growth of the organization. Moreover, the organization has also segmented the market on the basis of past customers of the organization. Retaining of the existing customers is very decisive from the perspective of the organization. In this regard, the organization has undertaken strategies to provide additional loyalty facilities to the existing customers. Furthermore, it has also targeted the travel agents to supply customers to the organizations. In this regard, the organization has undertaken necessary steps to clutch such travel agents and increase its market share (Seabourn Cruise Line Limited, 2014; Di Foggia & Lazzarotti, 2013; Vladimir, 1995). Market Competition Considering the growing demand of the global tourism industry, several cruise companies have emerged in the past few decades. These companies are highly efficient and effective in fulfilling the demand of the customers. Hence, these companies have emerged as the tough competitors for Seabourne Cruise Line. One of such competitors is the Royal Caribbean Cruises, which is the major competitor for Seabourne Cruise Line. This competitor is the global market leader and possesses 23% of market share. The prime reason for the success of this competitor is the effective segmentation of the market as per the needs and demands of the customers. Moreover, there are also other few competitors for the organization that significantly threatens its sustainability in the global market. These competitors include the Star Cruise Line, Mediterranean Shipping Company, Disney Cruise Line and many more (Di Foggia, Lazzarotti & Pizzurno, 2012; Vladimir, 1995). Considering the extreme competition in the cruise industry, it is decisive for the organization to undertake certain strategic decisions that would provide competitive advantages to the organization. One of such main area of strategic development is with regard to the pricing of the products and services. In this regard, pricing of products and services of the organization is done in accordance with the price of the competitors or the average price of the market. Seabourne Cruise Line has deliberately placed the price of the products and services below the price of the market leader in the industry. Moreover, in order to attain competitive advantage the organization has also undertaken several strategies to customer satisfaction. This is prominently observed in some of the loyalty programs undertaken by the organization in order to retain its existing customers. One of such is the redeemable opportunity in cruise points to the existing loyal customers. Besides, there are also a few additional facilities to the existing customers. This not only attracts the existing customers, but also draws new customers towards the products and services offered by the organization. The new customers aspire of availing such facilities and in the process these new customers become loyal customers of the organization. Moreover, in order to gain competitive advantage the organization has provided additional facilities that significantly attract the customers. These include the scope for spa, gym, theatre, music and dancing, shops on boards and many more. Although these facilities are also available on the cruises of other competitors of the organization, but the company is constantly looking for better service quality through these aspects (Di Foggia, Lazzarotti & Pizzurno, 2012; Vladimir, 1995). Market Penetration / Destination Development Market Penetration Seabourn Cruise Line Company has all the potential of becoming a market leader in the cruise industry. However, it has been observed that the Royal Caribbean Cruise has been the market leader for a significant period of time. Besides Royal Caribbean Cruise, the organization is also facing a significant threat from the other competitors in the industry. Hence, from the perspective of the Seabourn Cruise Line Company, it is essential that the organization is able to penetrate new market and thereby, attain the maximum market share. The increasing market share would also lead to the rise in the profit of the organization. This would lead to the ultimate fulfilling of the goals of the organization (Seabourn Cruise Line Limited, 2014; Bengtsson, 2014; Vladimir, 1995). In order to undergo market penetration the organization has undertaken several strategies. One of such is the pricing of products and services of the organization. In this regard, the organization has placed the price in level below the market leader. Moreover, the organization also considers the middle income people that can afford average price for the tour. The products are also categorized with lesser frills for those income people. This has lead to a significant attainment of the market share by the organization (Seabourn Cruise Line Limited, 2014; Bengtsson, 2014; Vladimir, 1995). Besides the pricing strategy adopted by Seabourn Cruise Line the organization has also undertaken several other steps. The organization has been able to understand the need and demand of the market effectively. Hence, the organization has modified and segmented the product in accordance with the demand of the product. This has lead to significant increase in the market share of the organization. In this regard, the organization has introduced several innovations and modifications in its product. The organization has introduced bars of all types. It has also introduced cuisines of all possible varieties for customers of different cultures. Some of the different cuisines that are observed on the cruise include piszza, shushi, martini, cappuccino, ice-cream, wine, cigar, and many more. In order to penetrate the market, the organization has also introduced several of the other facilities, including the indoor shopping area. It has also introduced movie screens and others for attracting the customers (Seabourn Cruise Line Limited, 2014; Bengtsson, 2014; Vladimir, 1995). Destination Development Seabourn Cruise Line in order to gain competitive advantages has also considered some of the steps in the development of destinations. The organization has considered all the possible aspects through which the customers are fully satisfied and hence, increase the profit of the organization. In this regard, the organization has used state of the art technology for the successful development of destination of the customers. The organization has several destination locations throughout the world. These include Antarctica and Patagonia, Arabia, Africa, Asia, Australia, Europe, Mediterranean region, Latin America, and many more. These destinations are well developed to provide comfort to the customers. Moreover, the organization also has luxurious hotels and resorts in the location so that the customers experience the maximum possible satisfaction from the tour. There is also scope for package tour for the customers so that the customers avail all the facilities in one single payment. It is also important to note that the tour packages offered by the organization are comparatively cheaper than its competitors. Furthermore, the organization has also undertaken steps for the development of ports across its different destination (Seabourn Cruise Line Limited, 2014; Hur & Alder, 2013; Vladimir, 1995). Onboard Cruise Operations (Organization, Departmental management, Customer service) Organization Seabourn Cruise Line Company has undertaken several strategies in the onboard so as to increase the revenue and the profit of the organization. One of the notable aspects that are observed in the onboard cruise operations of the organization is influencing the guests or the customers to share their experience with the friends and the family members. Moreover, the organization also influences the customers to suggest their family members and the friends to have the same experience. Besides, the prime concern of the organization during the onboard cruise operation is the complete satisfaction to the customers. The organization has the liability of sufficing the need of the customers as stated in the tour coupons. Failing to suffice the same would lead to dissatisfaction of the customers and hence, would lead to the loss of reputation and brand image of the organization. This would act as a significant barrier to the organizational goals and objectives. It is thus, essential that the organization must suffice the demand of the customers. The organization is liable to provide some of the additional facilities to the guests or the customers. These include the casino on the board, spa, gym, theatre, music and dancing, and many more. In order to provide superior quality of service to the customers, the organization recruits some of the top employees throughout the world who are highly specialized in their respective field. Moreover, the organization in order to enhance customer satisfaction on board also undertakes steps to promote the infrastructure of the organization. The improvement in the infrastructure significantly improves the quality of services offered by the organization. Furthermore, from the organizational perspective, it is also important that the organization undertake necessary measures that would improve the on board control regarding every aspect of adequate and appropriate service delivery to the customer. In this regard, cruise managers are appointed who are in charge of controlling every aspect to satisfy the customers. Customer feedbacks are also obtained so that the organization is being able to understand the effectiveness of the employees and the organization as a whole in its operations. Through this feedback system, the organization is also being able to evaluate the performance of the organization and hence, operates accordingly. Besides, the organization also has a superior informational technology that enables the organization to operate effectively on the board. Through the use of information technology the company has been able to control every aspect of operations. The information technology would help the organization understand the bottlenecks in the process of operation and would enable it to remove it effectively. The organization also has the comprehensive understanding of the cost associated with the onboard operation process. The understanding of the cost in every aspect would also enable them to reduce the same to increase the profitability in the operation process (Seabourn Cruise Line Limited, 2014; Kuwornu, 2013; Vladimir, 1995). Departmental Management Seabourn Cruise Line has several departments in it that have specified functions to operate in the onboard process. These organizational departments strengthen the organization structure. It also enables the organization to be more effective in controlling every aspect of the organization. In this regard, it has been observed that there are several departments associated with the organization. These comprise of marketing, sole objective this department is to promote the products of the organization, thereby target to attract more customers within the organization. The marketing department is highly active in the onboard operation process of the organization. The marketing department approaches the customers to bring their relatives and friends and have the same experience that they had. Moreover, the organization also have finance department, for overseeing the financial aspects of the organization. The financial control is very important in a large organization like Seabourn Cruise Line. It determines the feasibility and the sustainability of a business operation process. The finance department also has the proper understanding of the cost associated with each product. Furthermore, the Human Resource (HR) department is also essential from the perspective of the organization. Considering a significant number of employees working together on the board, it is essential that the organization have an HR department that would encourage a smooth and systematic flow of work process of all departments. Besides, the organization also has the informational technology department. The objective of the department is to control information related to the operation during the onboard process of the organization. It also obtains the customer feedbacks and hence, enables the organization to understand the loopholes within it. This department is very essential considering the complexity in the operation process. Last but not the least and the most vital is the operation department of the organization. The operation department of the organization mitigates all the specific needs of the customers in the cruise. In this regard, there are several needs of the customers that are included in the tour packages. It is the liability of the operations department to suffice those needs of the customers. The superior services of the operation department are the ultimate factor to customer satisfaction. Thus, this department is very crucial from the perspective of the organization. Hence, in order to provide superior quality of service to the customers, the organization has recruited some of the top employees in the operations department. These employees include spa professionals, gym instructors, professional theatre actors, professional musicians and dancers, and many more (Seabourn Cruise Line Limited, 2014; Vladimir, 1995). Customer Service Customer service is very essential from the perspective of Seabourn Cruise Line Company. In this regard, it is very crucial that the organization understands the needs and the demands of the customers. Through understanding the demands of the customers, the organization designs the products and services accordingly. The customers as a result of such development of the products and services become more satisfied. In this regard, considering the customer satisfaction, the organization has undertaken certain modification in the product line as well as the introduction of new products. The organization has introduced a new product in its product line such as gym within the cruise. The introduction of gym highly satisfies some of the customers who undergo regular gym. Moreover, there is also a further extension in the customer services with the introduction of spa facilities in the cruise. Besides, music and dancing is loved by several people of the world. It significantly satisfies the customers of the organization in the leisure period of the customers in the cruise. The organization has recruited some of the professional musicians and dancers for the purpose higher satisfaction to the customers. Moreover, the organization has also introduced theatre plays for the purpose of entertaining customers in the cruise. The language of the plays is considered on the preference of the customers in the cruise. The actors and the actress of the act as well as all the professionals involved in the plays are of extreme talent. These all highly satisfies the customers of the organization. Furthermore, one of the major aspects of customer’s satisfaction is the dining experience. The organization has considered all the factors that would lead to the development of dining experience of the customers. In this regard, the customers of the organization are of different countries with different cultures and thus have different preference in cuisines. The organization considering the varied food preferences of different customers has introduced different dishes in the cruise. The chiefs for preparing those dishes have professional excellence in order to enhance customer service quality. Besides, there are several activities that are observed in the cruises that enlarges the customer services. One of such is the establishment of space for photo gallery and arrangement of art auction for the customers. The photo gallery primarily considers the destination location of the cruise and the tour passengers. The customer service also includes the travelogue, where the guests or the customers are entertained with lectures regarding the travel through videos and slides. The customer service also includes the introduction of casino. Moreover, it also include activities like shore excursion, where the organization arranges a picnic like scenario for the customers. Seabourn Cruise Line also arranges shopping facilities for the customers onboard. In addition, the organization also arranges additional services to the customers, which include the web internet cafe. It also includes services like arrangements for gym onboard. Furthermore, there are some of the services that are introduced as per the demand of the customers. These include the services of spa in the cruise and also the airbrushed tattoos for the customers. Last but not the least; the major concern for the organization in providing services to the customers is the safety and security issues. In this regard, as the cruise is travelling through oceans, there is a high risk of environmental stresses that might hamper the customer service quality. The organization has undertaken several strategies that to the development of the infrastructure of the cruise and hence, being able to withstand such environmental stresses. The safety and security measures undertaken by the organization increases the reliability of the customers. The reliability of the customers towards the organization is extremely decisive from the perspective of the organization. This has lead to the growth of the organization and hence, the attainment of the broad goals of the organization (Seabourn Cruise Line Limited, 2014; Vladimir, 1995). Conclusion From the essay, it has been observed that Seabourn Cruise Line Company has been facing stiff competition since the year of its establishment. In this regard, the organization has undertaken several strategies for attaining competitive advantages and to attain greater market share. One of such strategy undertaken by the organization is the segmentations of the products and the services of the organization as per the needs and demands of the target customers. The segmentation strategies of the organization rest on several factors. This includes segmentation as per the age groups, number of customers, and others. Moreover, the organization has also introduced a good pricing strategy in order to gain competitive advantages. It has also undertaken measures to improve the destination of the travelers or the customers so as to build higher customer satisfaction. Moreover, in order to generate higher customer satisfaction in cruise, the organization has implemented several strategies in improving business operations. The organization has considered the development of several departments that would lead to appropriate and adequate delivery of service to the customers. This in turn would lead to higher customer satisfaction. Furthermore, considering the improvement of service, the organization has introduced several activities to the customers as per their demands and needs. These include facilities for spa, gym, theatre, music and dance, and many more. The fulfillment of the demands of the customers would eventually lead to the customer satisfaction. Thus, these activities have also provided significant competitive advantages to the organization. These also generate the scope of attaining the goals of the organization in order to become the market leader in the industry. Moreover, from the study it is observed that the strategies undertaken by Seabourn Cruise Line are highly effective, but it needs to develop strategies for penetrating in the new market. Furthermore, it is also important to note that the segmentations of products and understanding the demands of the customers is not only limited to the aforementioned company, but to any organization in this modern era. This would lead to higher customer satisfaction irrespective of the type of industry. References Bengtsson, R. (2014). Pricing methods and strategies in the cruise line industry. Uppsala University Campus Gotland, 1-40. Bressona, G., & Logossah, K. (2008). Crowding-out effects of cruise tourism on stay-over tourism within the Caribbean. Retrieved from http://ermes.u-paris2.fr/doctrav/0811.pdf Di Foggia, G., & Lazzarotti, V. (2013). Business implications of local development policies: the case of Dubai and the travel industry. Theoretical and Empirical Researches in Urban Management, 8 (1), 78-91. Di Foggia, G., Lazzarotti, V., & Pizzurno, E. (2012). The economics and management of innovation in travel and tourism services: the case of European cruise industry in Dubai. UTMS Journal of Economics 3 (2), 167–179. Hur, Y., & Alder, H. (2013). An exploratory study of the propensity for South Koreans to take cruises: investigating Koreans’ perceptions of cruise ship travel. International Journal of Tourism Research, 15, 171-183. Kuwornu, J. K. M. (2013). Cruise line product differentiation practice: a cluster analysis approach. International Journal of Business and Management, 8 (13), 93-101. Perucic, D. (2007). The impact of globalization on supply and demand in the cruise industry. Tourism and Hospitality Management, 13 (3), 665-680. Seabourn Cruise Line Limited. (2014). Seabourn. Retrieved from http://www.seabourn.com/main/Main.action Vladimir, A. N. (1995). Seabourn Cruise Line: a case study in achieving quality. Hospitality Review, 13 (1), 7-21. Read More