Carnival Cruise Analysis

Executive Summary

Carnival Cruise Lines would attract more repeat customers through an updated information system based on real-time data that analyzes customer preferences and creates customer profiles. Based on the customer profiles, Carnival can offer short-term discounts and a long-term loyalty program. Tailored discounts will increase on board spending, particularly in high profit segments. A loyalty program will increase repeat customers, who typically spend 15% more than first time cruisers. The new information system will strengthen how Carnival uses its customer data to improve profitability. By adding these new initiatives, Carnival can increase its competitive advantage.

Implement new information system to analyze and understand customer needs

In order to create accurate profiles and effectively use customer data, Carnival should collect and analyze real time customer transactions. Carnival already has data collection tools in place. In addition, compared to rivals in Vegas and Orlando, Carnival also has the advantage of an enclosed environment, where all customer transactions can be recorded and analyzed.

Use real time preferences to customize the cruiser experience

Carnival can use customer profiles to create individualized promotions that target spending to complementary goods in higher profit segments. The discounts will increase bottom-line profit due to more on board spending. In addition, the individualized promotions will make satisfied customers more likely to return, making this trade off worthwhile for Carnival. Lowering the cost of customer’s preferences allows them to enjoy more activities, enhancing Carnival’s “fun” proposition.

Improve customer retention by creating a loyalty rewards system

Carnival can gain repeat customers and increase profitability by implementing an improved loyalty rewards program. Customers will receive credits for returning to be used on their next cruise. Due to Carnival’s large...