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CarnivalCruiseLines.docx

Carnival Cruise Lines

Carnival cruise lines were invented with the idea of promoting “Fun Ship’ vacations which led to the revival of the industry. Vacationers started using the cruise line for their holidays through ways such as theme-park visits, group tours, and vacations. Carnival purchased retired liners at good prices, refurbished them through painting in bright colors, and installed casinos and discos. With time, it added more lines. Today, each of its brands serves a specific region and is customized differently through geographically related themes. Besides, Carnival developed a brand called Fathom where they transport passengers to the less developed countries where they can participate in volunteer services for a week. Carnival is a Panamanian firm, which is an international business, but most of its passengers come from the United States. However, the company is neither subject to the U.S nor Panamanian income taxes, it has to pay port fees when operating in both countries. The most popular destination for Carnival’s passengers is Bahamas/ Caribbean since the area has balmy weather all around. Cruise ships often go to areas where seaports are available, but Carnival owns and collaborates with some tour operators who provide about 2,000 onshore excursions at a fee. In operating a cruise line, a company has to do ship shopping. Also, the company sources crew members globally and it currently has workers from more than a hundred countries. The cruise lines have entertainment facilities such as games, athletic facilities, casinos, and spas. As a way of maintaining safety, cruise lines have strict security checks to all boarding passengers. Besides, Carnival has more U.S ports to allow passengers with flying phobia reach departure points faster while also avoiding areas with crimes and political upheavals. Economic issues affect business at Carnival as during recessions; people take shorter cruises while extreme weather also causes the company to cancel trips, change destinations, and switch embarkation points. The future of Carnival is mixed; On one hand; people’s incomes continue to grow which improves the industry; on the other side, first- time customers are decreasing which is a worry for business.

One of the parts that struck me was the entertainment services offered by cruise lines. For instance, Carnival offers about two formal nights every week, musical entertainments, theme-based dinners, games, athletic facilities, online shopping, and spas. Besides, the cruise provides casinos since they are not subject to national laws that restrict gambling. It is interesting how all these services are provided in one place while also accommodating all types of people including middle-income earning individuals. Prior to reading this, I didn’t know all these services could be available on the ship. Another interesting part was the number of employees in Carnival Company and their originality. In each ship, there are many crew members from over a hundred countries. It is interesting how the company can integrate employees from so many countries and this is a good way of promoting cultural integration. And the case said that approximately one-third of crew members are Filipinos since they are fluent in English while also being willing to work at low wages. The fact that Filipinos are proficient in English is interesting while their willingness to work with low wages is astonishing.

One of the most disturbing questions after reading this case is where the cruise lines get their crew members. For example, the case indicates that each of Carnival’s ships has over a hundred crew members who come from over a hundred countries. How are the employees vetted? I would also like to know why the company insists on having members from different countries despite the challenges that would be present due to cultural differences. Again, it is not clear to me why national authority laws do not guard cruise lines, and the reason they accommodate gambling. This makes me wonder whether the ships also allow other activities that are deemed illegal by our laws and how cruise line companies handle wrongdoing of the passengers while they are traveling. The last thing that left me confused concerns the future of the cruise lines. On the one hand, the industry could grow as people’s incomes increase, but it could also die in the future since first-time travelers are decreasing every day. As a result, I am wondering what the future holds for companies like Carnival and Royal Caribbean, but it would be unfortunate if they ceased to exist due to their contribution in tourism.