Cruise Marketing Strategies of Carnival Cruise Lines and Thomas Tui Essay Example
This report examines the cruise marketing strategies of Carnival Cruise Lines and Thomson TUI in the UK. It compares the performance of each company over the years and assesses their positioning and pricing policies. The report also evaluates the effectiveness of their promotion and advertisement campaigns. Cruising has gained popularity in the UK and globally for holidaymakers. According to Breaking travel news, the cruise industry is well-positioned for continued growth as cruise holidays are on the rise. However, some individuals are still hesitant to try cruising due to the high costs, concerns about seasickness, fear of traveling on a boat, and various other reasons.
Within this report, the focus will be on two major cruise lines: Carnival Cruise Lines and Thomson TUI. Carnival Cruise Lines, a part of Carnival Cooperation, established in 1972, began with a single ship called 'the Mardi gr
...as'. On the other hand, Thomson TUI cruise lines are owned by TUI Travel PLC and provide diverse cruise packages as well as bundled vacations, including flights and accommodations.
Market Segmentation is crucial for companies as it enables more efficient marketing by targeting specific tourists to particular destinations. Another important factor is the image projected onto a destination. The UK tourism market constantly evolves due to the unique preferences and travel purposes of individuals. For instance, people travel for business, leisure, health, visiting friends and family, sports, culture, and other reasons. Consequently, leaflets and advertisements have been designed to promote offerings tailored to these specific groups of people.
Research conducted online reveals that there is a lack of available market segmentation information about companies. However, through online research,
it is possible to identify different types of tourists and assess their segmentation based on the onboard amenities they prefer. It is evident from the Carnival website, http://www.carnival.com, that the company targets specific consumer demographics by considering factors such as age and income when designing their offerings.
Carnival Cruise Line offers various offers for individuals with different income levels, providing luxury priced cruises that are suitable for their financial situation. The company understands that income can affect one's motivation to travel, as individuals may desire a fulfilling cruising holiday with all the amenities but may not be able to afford it. On the other hand, Thomson employs physiographical segmentation to cater to consumers who need to plan their vacations around their lifestyle. They have a specific category on their website, http://www.thomson.co.uk, called 'summer 2012,' as the company recognizes that people tend to book holidays during this time due to children being on school holidays and the desire to spend time with family.
Both websites offer Plog's typology theory, which categorizes individuals into allocentrics, midcentrics, and psychocentrics based on their travel preferences. Allocentrics are adventurous souls who enjoy exploring and traveling independently. Midcentrics are also open to exploration but prefer well-known destinations. Psychocentrics, on the other hand, prefer to stay near their homes or travel only if they can replicate the comforts of their own homes. The pricing options on these websites cater to different segments, such as individuals, couples, and families, reflecting their target audience and travel purposes. It is worth noting that cruises were considerably expensive in the mid-19th century.
According to Marks Cruises (2009), cruises were once considered a luxury
only affordable by the upper class. First class passengers were typically wealthy individuals, such as business barons and entertainers, while second class was for white collar workers and steerage for the relatively poor. However, the travel industry has seen significant changes in cruise lines, making them more cost-efficient for customers today. Advertisements now promote new deals that offer affordable holiday options without breaking the bank. Pricing plays a crucial role in attracting customers, as high prices deter those seeking budget-friendly cruises. Companies employ various pricing strategies to appeal to different market segments.
The types of pricing for both companies are premium pricing, value for money pricing, and undercut pricing. Pricing can also be influenced by peak or off-peak times within the year. Both companies have their pricing policies and terms and conditions on their websites for customers to review before booking a cruise. However, the Thomas Cook website does not provide specific information about booking a cruise's terms and conditions. It is important for customers to read these terms and conditions before making a booking. Carnival Line cruises offer a 110% best price guarantee, meaning that if a customer finds a better deal after booking with Carnival Cruise Lines, they will receive additional on-board credit during their stay with the cruise line. This promotional offer attracts more customers to travel with them. Since these cruises are aimed at different destinations around the world, prices will vary in terms of the value for money they provide to customers.
Comparison of cruising prices:
Fig 2 shows the premium prices.
Thomson TUI offers a variety of cruises, one of which is the 'Thomson Dream'. This
cruise stands out with its premium pricing and captivating name. The specific date of the cruise is on the 25th of August 2012 for a duration of 7 nights. The cruise will visit the destinations mentioned above and offer various amenities such as pools, casinos, restaurants, bars, and lounges. The package includes breakfast, lunch, and dinner, making it a luxurious option for those who can afford it. The pricing also covers the type of room the customer will receive. With this price, customers are offered a deluxe room that is slightly more expensive than other accommodations on the ship. It offers great value for the money spent.
Fig 3
Carnival Cruise Lines also offer a variety of cruises. Figure 2 depicts a 7-day cruise to Alaska, which is reasonably-priced considering it falls in the month of August. While the room may not be as luxurious as the deluxe room shown on Thomson, it is a standard room for two people. Opting for a better room and specific location within the ship will result in increased pricing. The difference in booking these deals online is that Thomson allows customers to choose their preferred travel date, whereas Carnival Cruises only allows selection of the desired month. Therefore, customers must be flexible with the dates provided by Carnival Cruises.
Booking holidays in August can be expensive as it is a peak season for travelers in the UK. Promotion and advertising play a crucial role in the cruise industry, and the internet has revolutionized the way people book trips, with an increasing number of online bookings through mobile phones. Effective promotions and
advertisements utilize enticing visuals, videos, and persuasive language to encourage customers to explore available deals. Both websites mentioned in the text offer free registration, allowing users to receive additional information on the latest promotions and advertisements via email. Social networking sites like Facebook and Twitter have also proven to be effective tools for advertising.
Trip advisor provides online reviews of trips. A review posted on trip advisor about ‘Kinnon ; Co. Thomson River Cruises’ has numerous positive views on the cruise, giving viewers reassurance based on someone else's experience. Advertisements can be conducted through TV adverts, radio, leaflets, billboards, brochures, and other mediums. Carnival Cruise Lines is currently offering customers incredible deals both online and through TV advertising to increase their sales. These ads can also be seen on popular online video platform YouTube.
The purpose of The New Carnival Cruise Lines Advertisement is to promote a 3 day cruise starting at $299 per person. This low price is intended to attract customers and increase profit. The slogan "more fun for all" emphasizes the enjoyable experience of going on a cruise and reassures viewers that they will have a lot of fun. The word "All" targets a wide range of potential customers, rather than focusing on a specific demographic. The website also offers "early saver options" with guaranteed undercut prices, although these deals have an expiration date. Unlike Thomson, Carnival Cruise Lines has recently created new advertisements, with the last one being made in 2009.
The Thomson advert is slightly longer but it does not target cruising and the music played on the video is old fashioned, possibly targeting an
older generation market. The official website features winter and summer deals, short excursions, and new cruise and stay options for those who want to stay in one or two destinations. The appealing internet website and online advertisements on both websites feature high-quality pictures. Movie-induced tourism is a major reason people choose to travel and go on cruises. Negative and tragic stories about cruises, such as 'The Titanic', also exist.
The movie 'Chipwrecked', which was released on December 16, 2011, was filmed on Carnival Cruise Lines. According to Product placement news (2012), the ship's appearance in the movie provided benefits for both Fox and Carnival. Fox expanded its movie promotions, while Carnival was able to reach its main target audience of families. This marketing effort aimed to position Carnival cruise lines as a family-friendly option. The gathered information indicates that both cruises have performed exceptionally well. Both Tomas Cook and Carnival Line Cruises have utilized different segmentation strategies to target their respective audiences.
In my opinion, the most effective way to segment a company for marketing purposes is by considering the age of its employees. Demographic segmentation plays a significant role in targeting specific destinations and their corresponding audiences. Over the years, positioning strategies have evolved, leading to the transformation of cruising into a budget-friendly holiday option for everyone. Carnival Cruises, in particular, has introduced a range of special offers and campaigns aimed at boosting the popularity of cruising and stimulating economic growth. Online research suggests that prices for Carnival cruises tend to be relatively higher. However, in 2012, Carnival Cruises started offering better deals, leading to a substantial increase in profits for the
company. The current deal presented to customers provides an incredible price for a three-day short break holiday.
Thomas Cook will have to come up with innovative advertising strategies to target all groups of people and promote their cruises in order to attract more customers. On the other hand, Thomson is introducing cruise and stay deals as a new and exciting option in the UK market, which could contribute positively to their growth. However, this option is moderately priced. The future of Thomson TUI and Carnival Cruise Lines remains uncertain, especially in light of recent events such as the Costa Concordia disaster mentioned in a BBC news article. The article quotes The Independent's travel editor Simon Calder calling it "unbelievable" that such an incident could occur on a modern ship in the 21st century.
The unexpected event resulted in numerous deaths and the loss of loved ones, which will inevitably affect the cruising industry and every company within it. People will now have a fear of traveling on boats. Additionally, the ongoing recession has posed challenges for Thomson TUI and Carnival Cruise Lines, as they strive to overcome the global effects it has had. To address these challenges, new strategic advertisements are being promoted to customers. In addition, the UK may face new challengers in the form of new customers, which could potentially lead to better segmentation.
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