Royal Caribbean Cruise Lines

Royal Caribbean is a $4 billion company that began in 1969 in Norway. It’s the second largest cruise line on the market behind Carnival that makes up 27% of the world’s cruise market. Edwin Stephan and Arne Wilhemsen merged their ideas together to present cruises to the Caribbean for wealthy people living in Florida.

Three Norwegian shipping companies established Royal Caribbean Cruise Line: Anders Wilhemsen and company, I.M. Skauge and company, and later Gotaas Larsen. The current chairman and CEO is Richard D Fain, and the President and CEO is Adam M. Goldstein. The cruise line is based in Miami, Florida and owned by Royal Caribbean Cruises, Ltd. Royal Caribbean runs about 30 ships; the trips are mainly to the Caribbean and to Florida.

However, they also visit destinations all over the world such as: Asia, Europe, South America, Dubai, Mexico, Canada, Hawaii and Bermuda. The first ship that was launched was the Song of Norway in 1970. The Song of Norway weighed 18 tons and carried 700 passengers. Royal Caribbean’s mission statement is:” We always provide service with a friendly greeting and a smile. We anticipate the needs of our customers. We make all efforts to exceed our customers' expectations. We take ownership of any problem that is brought to our attention.

We engage in conduct that enhances our corporate reputation and employee morale. We are committed to act in the highest ethical manner and respect the rights and dignity of others. We are loyal to Royal Caribbean and Celebrity and strive for continuous improvement in everything we do.” Their vision is to empower and enable their employees to deliver the best vacation experience for their guest, by generating superior returns for their shareholders and enhancing the well-being of our communities. Overall, I think Royal Caribbean’s ultimate mission is to provide exceptional service to guests by going above and beyond expectations to provide them with an unforgettable vacation.

Royal Caribbean’s tagline is “Get out there.” The tagline was released in January 2000 to change the brand. The objective was to target a consumer mindset rather than demographics alone. According to Royal’s official website, the campaign has successfully raised brand preference by 68 % and increased web traffic by 400 %. The excitement during your vacation can be found both onboard and at the ports. One unique onboard activity is the 40 foot FlowRider. It’s a wave simulator that can be found on the Freedom of the Seas where guests can surf on deck.

Another unique onboard activity is zip lining on the Allure of the Seas and the Oasis of the Seas. All of the ships also provide rock climbing. Royal also has its own private destination in Haiti called Labadee. This location is exclusive only to Royal Caribbean guests. It’s located on the north coast of Haiti, surrounded by mountain slopes and beaches. It also features a water park just for kids. Another exclusive location for only Royal Caribbean guests is Coco Cay, Bahamas. There are tons of activities and tours available in this private destination. Royal Caribbean targets every age group. They also want their services to accommodate everyone as well. They tend to target mainly families, parents, and kids by providing a unique vacationing experience.

They also tend to target couples between the ages of 25-54 looking for a romantic getaway. They do not focus on one specific demographic. According to Royal Caribbean’s marketing plan, they want to “increase their awareness by increasing market penetration, diversifying their customer base, and increasing the amount of information about their company generated at local travel agencies. They have various attributes, consisting of; state-of-the-art cruise ships, luxury, variety of itineraries to various destinations, vast array of onboard activities, dining and entertainment, etc.”

When associating Royal Caribbean to everyday life, the song “Lust for Life” by Iggy Pop can be quickly recognized. This song is used in Royal Caribbean commercials along with visions of ecstatic vacationers’ glacier trekking and swimming with sting rays. Royal Caribbean’s marketing campaign won awards in 2002. The purpose was to” redefine the perception of cruising by spotlighting the visionary and innovative new ships and shore programs that are the core of a Royal Caribbean vacation experience.”

The strengths of Royal Caribbean are their dominant business position, their strong brand recognition, and their consistent increase in revenues. Their weaknesses are their increasing expenses, low efficiency, and their inadequate presence in a high growth European market. The opportunities are favorable demographic trends, marketing alliances, and improved cruise passenger traffic.

The threats are the weather conditions, severe competition, and high fuel prices. In conclusion, I feel that Royal Caribbean has successfully achieved their mission and vision. They don’t have any specific demographic and targets every age group. The service that is available and provided is exceptional. It was very interesting to learn about the many unique onboard activities that are available on the different ships. From surfing on a simulator, to rock climbing, to zip lining across the deck, there are endless possibilities when cruising with Royal.

Sources

1) The Royal Caribbean International Web Site http://www.royalcaribbean.com/ourCompany/pressCenter/pressReleases/info.do?prCode=A&prDate=08-12-2002 2) The Royal Caribbean Marketing Plan http://jlynnhansen.files.wordpress.com/2010/10/marketing-plan-best.pdf

3) USA Today http://traveltips.usatoday.com/royal-caribbean-cruises-history-22079.html

4) Scribd http://www.scribd.com/doc/37141008/Royal-Caribbean-Cruises-Swot-Analysis

5) http://phx.corporate-ir.net/phoenix.zhtml?c=103045&p=irol-missionstatement