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Essay / The Cruise Line Industry - 854
The two forces currently affecting the cruise line industry are economic and political forces. Both of these forces pose threats to the company and the industry because in 2009, the usage economy was slowing and sales declined that year. The global recession has had a significant impact on the financial performance of travel agencies around the world. The Carnival suffered significant losses. Travel demand reduced by 13% due to economic recession. As the consumer's discretionary spending capacity decreases, the demand for Carnival's cruise services would also decrease, which would also affect revenue growth. The other threat was that political issues in Mexico and Africa were uncertain and a problem for some, as both places had very important ports for trade. cruise line industry. The cruise line did not feel safe traveling to these ports. Additionally, when it comes to economic benefits, cruises benefit from their guests. The two opportunities were social and technological culture, because the cruise line due to the decline in the economy in the United States, it turns to Europe for the year 2009 in which it gains market. share, and actually help the company make a profit that year, as the company shifts its marketing towards European culture. The other opportunity lies in technological advancements: the company was upgrading its ships and, more importantly, working to build new ships that would be ready to set sail in 2014. Additionally, technology has increased travel in cruise. Provides the technology needed to improve activities within the cruise. Carnival Cruise Lines was the most popular and profitable cruise line in the world. Regarding the threat of new entrants, it is very difficult to enter the cruise industry. Competition middle of paper ......ns covering certain categories of employees, and union relations were considered generally good. The American Maritime Union had cited Carnival (and other cruise operators) several times for exploiting its crews. In order to comply with government regulations, internationally all vessels and operations complied with SOLAS (Safety of Life at Sea) regulations adopted by most. maritime nations. In U.S. waters and ports, vessels were required to comply with U.S. Coast Guard and U.S. Public Health regulations, the Maritime Transportation Safety Act, the International Ship and Port Facility Safety Code, the United States Oil Pollution Act of 1990, the United States Maritime Commission, local laws. port authorities, local and federal law enforcement agencies and all laws relating to the hiring of foreign workers. Under the auspices of the Center for Disease Control, all cruises are inspected for health concerns..