E-commerce in the cruise industry

E-commercein the cruise industry

Thecurrent competitive nature of business has made it essential toidentify even small details for the sake of improving quality,increasing profits and maintaining substantial market share. Asstudies have asserted, information and information systems ofparticular products affect the economy as well as the decisionsaccordingly. It is for this purpose that one ought to understand orrather, gain knowledge either directly or indirectly throughexperience or observation, on product values. Electronic commerce isone mode of business that has seen vast growth over the years. Theever evolving world has made product and service acquisition quiteeasier. Sales have also benefited from the same. E-commerce can beexemplified through various aspects e.g. twitter, facebook, goggleamong others. Other companies utilizing E-commerce include the cruiseship industry, motor industry, and film among others. As a matter offact, roughly all entrepreneurs venturing into the business worlddwell in E-commerce.

Thispaper will look to identify one aspect of business that depends onfresh information as well as technology to boost their qualities andsales accordingly. By looking at a particular industry such as thecruise industry, the paper will outline how a tweak in certainservices can lead to substantial impacts on sales. The cruiseindustry utilizes electronic media when making bookings,advertisements among other things. By appropriately identifyingalterations that impact on the industry, the paper will assess theneed for encouraging the same rather than employing its alternatives.The vitality of this particular aspect will be a major undertakingelaborated within this paper. The paper will also broadly illustratethe business environment and why it is necessary to consider theoutlined aspects accordingly.


Cruiseindustry is a consolidated industry, it being competitive in naturewith well variety of products and services .the high competition is aresult of profit margins and the kind of services they offer hencemany organizations under the industry must work harder to maintain abetter position since customers have many options to choose from.Sales of product and services are extensively spread over severalfirms within the industry hence there is no dominant firm due toexistence of competition. However this competition offers barriers tonew firms due to high costs associated with cruise lines placingpressure to raise the cost of sales in order to earn profits.inaddition high capital and start-up costs is an a major obstacle for acompetitor joining the industry as it involves development andresearch costs or expenses associated with gaining the recognition ofcustomers [ CITATION Cat101 l 1033 ].

Oligopolystructure resembles that of cruise industry which entails industrywith few firms that controls a large market. Cruise industry has afew large competitors controlling the large share of market.Companies who aim to venture in the industry find it hard to adaptdue to their competitive nature leaving competition to only commonlytwo companies whose domination is reasonably clear. Despite the factthat trend is changing, few companies still dominate the industry dueto the output of each firm is dependent on the market elasticity.Each firm wants to maximize profit while minimizing cost ofproduction of services and this is only possible for well establishedfirms outweighing new firms. This is done by these companies makinginvestment decisions to block new competitors from entering themarket thus increasing market share thus introducing new demand.

Theoperating environment of the companies consists of competitors whoensure that the quality of services and products are provided whichare of great influence on the strength of suppliers and customers.Customer satisfaction plays a major role in the industry being thestrength of the industry’s success. Customer information concerningthe firm outlines the services provided by the firm and is used toidentify the areas that necessities improvement in order to maintainthe positions required for healthy competition. The innovative natureof some firms aids new discovery of unexploited areas that outweighthe other competitors [CITATION Con12 l 1033 ].

Thiscruise industry has a major influence on the country’s economy. Thedirect impact of the industry results from an extensive variety ofactivities.it generates employment on many areas such as cruiseships, advertising agencies, at hotels used for stays by passengersservices such as hospitality to tourists are vital in varying theperception of customers. Increase in the cruise industry attractsmore tourists to the industry brings an influence in the economicsector. Indirect impact is a result of direct suppliers such as goodsfrom supplementary companies. These indirect influence rise fromexpenditures of indirect and direct recipients made from their betterincome [ CITATION Jua10 l 1033 ].

Cruiseship industry stands for transportation, attractions, andaccommodation and tour operators. Economic growth have a greaterimpact on demand for hospitality services by consumers. Decisionsmade regarding resource allocation are considered as it affectsconsumer demand. Profit potential for services and products beinghigh, takes a strategic consideration on introduction of newtechnologies in the companies as they vastly affect the economy ofthe country in terms of revenue collection. Technological innovationgenerates new processes, products and services.it also changes theway society expects and behaves.


Hospitalityhas many descriptions with the most logical one being the act ofreceiving people, be it visitors, strangers or guests in a generousand friendly manner. It is one aspect that impacts a lot in thecruise industry. In this respect, encouraging hospitality entailsinvesting on education and training of personnel. Though one can deemit as a practice that leads to increase in company’s operationalcosts, it is beneficial to have it than not. Hospitality in manyaspects enables a company to venture into different niches. Forinstance, apart from the recreational aspects of the industry, acompany ends up training employees as well as other parties onhospitality to the benefit of the general public. It ends up wideninga company’s scope i.e. marketability. A good example of cruiseindustry that could benefit from hospitality is Carnival. The companyreceives numerous guests across the globe with different cultures.Relating to the different kinds of people may turn out to be hecticif not appropriately handled. By successfully introducing hospitalitytrainings, customer handling improves leading to a corresponding risein customers hence rise in profits. Hospitality also entailsdiversifying on spoken languages so as to handle any kind ofcustomers. A shift in customer handling involves learning almost allthe languages or the core languages across the globe. That way, acustomer from any background can be accommodated. Though this kind ofinformation may be known across the competitors, it has not beenfully utilized.

Advertisingversus Publicity

Thoughthe two marketing strategies tend to be the same, they are actuallytwo diverse communication means. Publicity is the non-personalcommunication that entails conveyance of information through media.It generally draws attention towards a company and the products andservices entailed in it without necessarily paying the media for it.Advertising on the other hand involves, manipulation, persuasion orencouragement of customers to acquire a company’s products andservices. It generally entails paying to be accommodated in the printmedia [ CITATION Ken14 l 1033 ].

Thecruise company can benefit a lot from publicity rather thanadvertisements. Since e-commerce is a growing trend, continuous popups on web pages, mentioning on media among other electronic deviceshave a considerable impact on customers. Advertisements are timedi.e. aired during particular times depending on agreements. Publicitywill ensure continuous conveyance of the company’s details withoutany costs accrued. This leads to decrease in operational costs yetachieving the necessary targets.

Publicityand hospitality interrelate when it comes to customer handling. Thecruise industry ventures a lot in selling their products and servicesthrough the internet. For instance, customers buy tickets, bookspaces, make queries and purchases through the internet. A tweak inpublicity and hospitality aspects play a huge in convincing customersto partake the services. The company can attract more customers byintroducing a self-generating reward program that rewards itscustomers. By keeping records of customers in their databases, thecompany can realize a rewarding mechanism to boost their markets.This is one mode of making positive publicities and being hospitableas well. Other related companies bank on advertisements and tappingin new areas that have not experienced this kind of services andforget sustaining their current customers. Rewards are one way ofsustaining customer relations.

Publicityin this respect is introduced to reduce costs of advertising,increase the quantity and thereby sustain the profits. Hospitality onthe other hand ensures quality of service is per the requiredstandards hence ensure customer retention and increase in marketsize. With the competitive nature of the cruise industry, a smallchange in customer service or product provision leads to acorresponding change in market share that are replicated by theprofits acquired.


Cruiseindustry is a consolidated, competitive industry which resembles anoligopoly with few large companies operating under investmentdecisions in order to maintain the few number while blocking newentries from joining the sector. The few number of companies enjoythe larger share of the market. The elasticity of the market dependson the output of each company. The industry has a major influence onthe economy of the country, there are direct and indirect impacts andthese impacts. Contributions of these impacts are a result of thedecisions made by the companies which influence the technologicalinnovation, hospitality services provided by the industry towards itscustomers resulting in the amount of revenue collection collected andultimately affects the country’s economy.

Thecruise industry continuously employs internet strategies to marketitself. The industry goes through numerous challenges due to thecompetitive nature. It is therefore vital to encourage hospitalityand publicity to boost sales and sustain customers. Information onappropriate publicity and hospitality mechanisms such as customerrewards are a changing factor within the industry. Employing theaspects above will positively impact on the profit margins. Lackingthe above aspects will be detrimental to the company’s operations.


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