only for daisy

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When I read the case, one thing really shocked me is that the crews and employees from each ship of Carnival Cruise Line are come from over 100 countries. And I’m wondering why the company choose to do that. Obviously, one reason is to attract customers from all social & culture backgrounds. Because the employees can communicate with any language and understand the needs and customs from all cultures. But today, I want to talk about another reason, and I think it’s the actually main reason for Carnival to use this hiring strategy: Hiring crews from different parts of the world can cut the cost for the company well.

Like all other cruise companies, Carnival Cruise line is also bad for underpaying its workers. For instance, an officer’s salary is much less than what a typical employee pays, the average salary is only $1350 per month for normal crews. Most of the employees work far away from their families for many months and remain poor. As we know the tuition fee in our university, exclude other expenses is around $20,000 per year, crews cannot afford their children’s tuition fee. In that case, most Americans and the people from other developed countries do not prefer working for such companies. And then, managers find another way to hire employees: Hiring employees from many other developing countries, such as Philippines. For example, a crew from Philippines is comfortable being paid $610-$1150 per month and is provided foods and house, because that is more than what a person with a university degree is paid in their country. I have to mention that, the average salary for a professor is $950 per month, and the teacher is only $. A person who is working on the cruise ship as able to earn more than a teacher and even a professor! Then the crew can take care of his entire family back in Philippine, India, China and other developing countries. So therefore, there are huge amount of employees resources over these developing countries. That really saves the company a huge amount of money from cutting the cost.

Additionally, the working schedules of such companies are also not in line with the United States standards, so Carnival Cruise Line prefer workers from other parts of the world. Comparing to American workers who used to work 160 hours per month and relaxing on weekends, Carnival prefer to hire crews from other developing countries who are willing to work 300 hours a month without any weekends and holidays for more than six straight months. You see, there is a huge difference between 160 hours to 300 hours. And then, Carnival can hire only 50% percent employees and therefore save more money to develop their products.

From what I talk above, if the Carnival decided to employ American citizens, they have to spend a lot on salary payments. They need to increase their price so that they can keep up with the expenses. That would not play well with customers, and since there is too much competition in the industry, the passengers would choose the services from other cruise companies. Therefore, I would say, this hiring strategy is smart and earn a huge profit for Carnival Cruise Line.