Although sea voyages have held an aura of mystique for centuries, only in recent decades have the general masses been able to experience open seas and exotic ports of call as a purely recreational activity. Cruises, i.e., sea voyages for pleasure, offer passengers the convenience of an assigned cabin as they sail along a fixed itinerary that concludes at their original point of sea embarkation. Almost everything about the entire cruise industry is international, from the routes traveled to the use of flags of convenience to the locations of shipyards to the staffing of vessels. By far, the largest cruise competitor is Carnival, which owns a number of different branded lines. Because Carnival operates globally, it can treat the entire world as a source of both customers and supplies. At the same time, its widespread operations also leave Carnival vulnerable to political upheavals, health crises, economic recessions, and natural disasters. Still, in all, the future outlook both for the industry and for Carnival is bright as more people the world over choose a holiday cruise. 

Question

1. What specific steps has Carnival Cruise Lines taken to benefit from global social changes?

2. What economic factors influence success of the international cruise industry? Explain how each affects such success.

3. Although most cruise line passengers are from the United States, the average number of annual vacation days taken by U.S. residents is lower than that of workers in most other high-income countries (13 days, compared to 5 weeks in France and Germany). How might the cruise lines increase sales to people outside the United States?

4.  What threats exist for the future performance of the cruise-line industry and, specifically, of Carnival Cruise Lines? If you were in charge of Carnival, how would you (a) try to prevent these threats from becoming reality, and (b) deal with them if they were realized?