Carnival's 'fun ships' have created bonanza, says Cornell study

An in-depth case study published in the August issue of Cornell Hotel and Restaurant Administration Quarterly traces how Carnival Cruise Lines has marketed its branding message to a relatively young, middle-class clientele and has come out a winner. The study is by Robert Kwortnik, assistant professor at the Cornell School of Hotel Administration.

The study notes how Carnival has redefined cruise vacations by branding itself as a purveyor of "fun ships," decorated with "visual bonanzas, with bright colors and neon lighting," offering spiral waterslides, pool games, hairy-chest contests, cigar bars, karaoke, dance parties, casino gaming and airbrush tattoos.

"While North American passenger volume doubled between 1994 and 2004, Carnival's volume tripled, and its revenues netted $1.85 billion," says Kwortnik. "More than 3 million guests sailed Carnival in 2004, the most in the company's history, and a figure representing nearly one out of every three cruisers."

The key, Kwortnik concludes, is for companies like Carnival to stay focused on core customers and the meanings and experiences passengers seek from a brand. Focusing on this "brand essence" can help managers make decisions about marketing strategy -- from product design elements to marketing communications, he says.

The analysis of Carnival's branding strategy is available on the Cornell Center for Hospitality Research Web site at http://www.hotelschool.cornell.edu/chr/. The study was funded internally.

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