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The Economics of US Cruise Companies' European Brand Strategies

Author

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  • Michael P. Vogel

    (Institute for Maritime Tourism, Bremerhaven University of Applied Sciences, An der Karlstadt 8, 27568 Bremerhaven, Germany)

Abstract

Carnival and Royal Caribbean control two-thirds of the global cruise ship capacity. Although they share the same ambition to grow in Europe, they have never shared the same strategy. Carnival adopted a strategy of multiple decentralized local brands, each with its own capacities and prices, while Royal Caribbean chose a global brand, capacity and pricing strategy. However, Royal Caribbean's acquisition of Pullmantur in Spain, and the subsequent announcements of a dedicated cruise line for France and of a joint venture with TUI in Germany, mark a fundamental strategy change. Using microeconomic modelling, this paper investigates the rationale for that change.

Suggested Citation

  • Michael P. Vogel, 2009. "The Economics of US Cruise Companies' European Brand Strategies," Tourism Economics, , vol. 15(4), pages 735-751, December.
    • Handle: RePEc:sae:toueco:v:15:y:2009:i:4:p:735-751
    DOI: 10.5367/000000009789955170
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