Tourism is one of the fastest growing industries globally but is highly dependent upon seasonal changes in climatic conditions economic activities along with individual lipstick and social behaviour patterns which prevail resulting in the segment characterizing seasonality. Seasonality has become an important deterministic feature of the Global tourism industry becoming a focal point for planning and strategy formulation. The most significant aspect of seasonality is that it causes concentration of customers with insert in short periods throughout the year.
The activity peaks during certain weeks or months leading to inefficiencies within the industry with a simultaneous burden being created on the available physical and social resources of the destination area contributing further to the carrying capacity restrictions. Seasonality in itself is characterized by existence of fluctuations in an activity during the course of the year with the fluctuation exhibition relation to specific seasons. Within the tourism industry there is extensive demand for cooler destinations in summer months and warmer places coastal destinations and beaches during the winter. This occurs due to changes in decisions made by consumers and producers all other involved agents operating within an economy. Butler explain seasonality as'atemporal imbalance in the phenomenon of tourism, which may be expressed in terms of dimensions of such elements as number of visitors form expenditure of visitors, traffic on highways and other forms of transportation, employment, and admissions to attractions'. Within the tourist industry the characteristic can be identified worldwide and is not restricted to certain destinations countries. It has major influence upon decisions planning and strategy due to impact on every aspect of stakeholder operations such as finance, labour and every aspect of supply chain management. Most organisations operating within the tourism industry device strategies to minimise the impact of seasonality so as to mitigate the impact of extensive fluctuations in demand by innovative management of capacity my creation of demand during off season, maximizing the benefit during seasonal demand and optimising demand supply capacity to minimise loss through implementation of various strategies such as part time work force. This is facilitated due to predictability of seasonality with facilitation of analysis in relation to various segments and industry to be able to accurately forecast demand and optimise exploitation of seasonality.
The cruise industry is experiencing continued ever growing demand in spite of the industry having grown at a high average rate. There is sufficient room for penetration within the developed countries itself with the large developing Nations providing an unexplored opportunity with huge potential. Ocean Cruise industry worldwide has an annual passenger compound annual growth rate of 6.63 % from 1990 to 2020. the percentage for the North American market who has taken the gross is 53% 24% of the US population. A total of 13 new Cruise vessels with a capacity of 33,379 is expected to be added to the world fleet in 2018 and another 37 Cruise Liners will be ready from 2018 to 2020. There is huge market potential and Carnival is one of the strongest companies poised to exploit all available opportunities and create exceptional revenues and generate large profits. Carnival Cruise Lines corp. and Plc. Is the largest Cruise shipping line in the industry. It was founded by Ted Alison with a single company in 1972. The company grew and expanded at an unprecedented rate mostly through a series of continuous acquisitions, leading to the company operating around 26 ships under different cruise brands, and from various ports, though famous for carribean cruises.
the major threat to the industry is from risk to passenger and vessels safety, as well as, unexpected events and delays which can provide a major setback. The company needs to focus on improvement in technology of the vessels it operates to ensure that all mechanical failures are minimised. Though all accidents may not be possible to control it is essential that the industry respond to them in an adequate manner to minimise damages and ensure re establishment of consumer confidence so that the segment name does not take a major hit.Other external threats the segment faces are from the legislative and social environment. Unprecedented growth and the continuous upward trajectory has led to the demand for a strong and consistent monitoring and control agency. There was also a call for more stringent tax measures on cruise companies and introduction of strict legislation to make the companies accountable for all accidents and other failures which puts the lives of citizens at risk resulting in, large burden on the exchequer. There has also been expression of concern over the safety of an industry which allows thousands of tourists on board without stringent security measures in place, resulting in communities bearing the pros and cons of allowing the operation of an industry with ships which accommodate more than 6000 people. The industry has responded to pressure from the Legislators by making every aspect of the business and management more transparent through increased disclosure, and implementing stronger security measures facilitating accountability.
Cruises use product mix pricing strategies which provide it optimal flexibility and benefit with maximization of customer satisfaction. The product mix pricing strategy of product line pricing is utilised for pricing of the cabins with the price headlines focusing on the interior cabins which are the lowest priced to attract maximum customers who are price sensitive on the basis of the low pricing offered. This ensures that no customers are lost due to a lump sum total package deal cost being used in advertisements which could be a deterrent for individuals who apply sensitive exploring the option further. The pricing is increased in a step by step manner through improved cabin types and service packages to be able to convince a customer to opt for higher price package with better services and facilities once the customer has been engaged with the low pricing. Almost 20 different cabin categories are offered on the basis of the size of the cabin, mid-deck, the view from the cabin and its placement on the ship being interior or exterior and in the middle of the ship or at the end. The exceptional variety along with a pricing which is highly differentiated on the basis of myriad facilities provided is difficult to compare with other options from other segments meeting every customer requirement satisfactorily.
The industry also uses optional product pricing by offering various options which have great perceived value for the customers and are not included in the main package. For example the meals are included but speciality menu items carry an extra charge. As customers out on a cruise holiday likes to experience the best and maybe more open to explore options of special dishes while in holiday mood this is an excellent strategy for increasing profitability. Beverages which are almost like an essential accompaniment and a must have for holidays are charged extra with packages being again offered for a daily package option at a more attractive pricing. The daily packages again do not include any of the premium alcoholic beverages which are available for a further charge. The strategy creates a perception of the entire package being extremely affordable and within budget for customers but tempting them once engaged and on board the cruise to spend that little bit extra. at the same time it provides the required flexibility and choice to the customer in making a selection of the perfect product mix which is absolutely suitable for them in terms of the pricing as well as the services and product offered. the value created becomes greater and customer satisfaction is achieved by offering extensive options and flexibility to create a perception of the customer having designed their own experience by making selections personally at every level. It also create value for the brand as being compassionate and empathetic in understanding the varied dietary and service requirements of various people and catering to the needs of a large customer base.
The other strategy industry uses is of promotional pricing which is common within the segment, during the popular high demand signified by the high season cruises and the colder months which are the low season with poor demand for the cruises special deals or packages are offered to attract customers. Thus, within the industry customer is king and queen with every effort being focused on customers and every offering designed to address their every need optimally.
Explain in detail how seasons or seasonal weather patterns impact demand for destinations. More people are...