Celebrity Cruises Case Study

Celebrity Cruises, Inc.: A Taste of Luxury Case Study

Executive Summary

Celebrity Cruise Lines is known as one of the most luxury cruise ships in the world who tend to cater to the experience of cruising. They are currently owned and operated by Royal Caribbean to form Royal Caribbean Ltd. This conglomerate includes Celebrity, Royal Caribbean, Azamara Club, Pullmantur Cruises and Croiseires de France. As the cruise line market is saturated with many low-cost and higher-end liners, Celebrity Cruises was faced with trying to find a segment within this market that separates them from the rest.

As stated in the case, Celebrity’s customer value statement focused on enrichment, rejuvenation and connection. In this statement, it is geared as a cruise liner where one can relax and enjoy the seas on a nice vacation – much different from Carnival Cruise Lines which is known as the “fun ship”. One of the important aspects to generating revenue are the customers who become part of a membership and are returning clients. In doing so, Celebrity geared its marketing towards providing a experience rather than focusing solely on a demographic. One of their goals is to market the luxurious experience one may have once on board their cruise ships. In doing so, Celebrity must position themselves as a luxurious streamliner at low-costs.

Unfortunately, for Celebrity, amongst the mass market of cruise liners, their prices and accommodations were one of the heighted in the industry – competing with ships such as Disney and Carnival. On average, guests paid more than 50% when compared to the competitors. However, Celebrity did offer special and exclusive incentives and programs for their guests ranging from the Captain’s Club, food made from scratch, exceptional service, fun activities, spacious staterooms, exceptional customer service and exotic ports-of-call. However, with all these amenities and special programs, Celebrity Cruises is struggling to keep a loyal...