Introduction
The profitability of Carnival Cruise Lines alongside its competitors is conditional upon a number of external and internal factors which should be taken into account when developing offers. The former includes economic consideration and politics, whereas the latter implies the effectiveness of operations in detail. In order to demonstrate the significance of these circumstances, it is necessary to analyze them with regard to the field’s past events.
Global Social Change
The activity Carnival Cruise Lines is significantly dependent on global social changes and, therefore, readjusted accordingly for benefitting from shifting trends. One of the most critical steps of this nature, which positively affected the business, was differentiating the offer in terms of costs and themes concerning the evolving demand in specific regions (“Cruise Carnival Lines” 22). It was followed by pioneering in the development of safety measures for the passengers when risks were reportedly high and the creation of flexible schemes in the case of weather issues or other unexpected events (“Cruise Carnival Lines” 23). In this way, the specified social changes were advantageous for the company as it proved capable of managing problems.
Economic Factors
The success of the international cruise industry is directly related to economic factors conditioning its further progress. They primarily include buying power, crises, and exchange rates which are hard to predict while being critical to a favorable outcome of business activity in this field (“Cruise Carnival Lines” 23). Thus, the capability of potential customers to spend money on cruises was confirmed to be higher compared to other types of vacation, and, alongside the flexibility in managing economic downturns, allowed companies to gain profits (“Cruise Carnival Lines” 23). These two factors were complemented by the positive effects of the lack of dependency of payments on monetary policy courses, increasing the convenience of operations (“Cruise Carnival Lines” 23). Thus, the mentioned economic circumstances contributed to the favorable environment.
Sales to People Outside the United States
In order to increase sales to people outside the United States, which is feasible from the perspective of the number of vacation days in different countries, the cruise lines should conduct timely assessments. They should monitor the periods popular among the citizens for traveling and, more specifically, national holidays so that their offers correlate with a specific demand. In addition, it would be reasonable to suggest organizing a survey to reveal the probability for individuals in different regions to use the services of cruise liners for business and other purposes.
Threats and How to Prevent Them
The future performance of the cruise-line industry in general and, more specifically, Carnival Cruise Lines depends on a careful examination of threats and the development of measures for mitigating risks. In this case, they will include the possibility of pandemics and the decreased economic wellbeing of the target population (“Cruise Carnival Lines” 23). Even though it is impossible to prevent them completely, the external circumstances can still be addressed by timely changing prices while selecting less expensive destinations. Once the mentioned threats are realized, it is feasible to shift the focus from fun cruises to business trips unaffected by the specified causes.
Conclusion
In conclusion, the analysis showed that Carnival Cruise Lines is a company which depends on social and economic changes for increasing profits and remaining competitive. Moreover, its activity can be effective only when these conditions are taken into account alongside the human factor shifting together with the conditions of the environment. Therefore, in order to survive in the long run, a careful approach to making forecasts and readjustments is needed.
Work Cited
“Cruise Carnival Lines.” n.d., pp. 21-24 [PDF Document].