Presented exhibits determine four main segments of the cruise tourism market – contemporary, premium, luxury and destinations. The pattern of market segmentation in this market can be described as clustered preferences based on the natural market segments which will be discussed. It is important to note that major players in the industry develop several brands allowing them to cater to the different segments. Cruisers who fall under the contemporary segment account for up to 50% of the industry. The psychographic descriptions provided in exhibit eight label them as escapers (30%), souvenirs (10%) and adrift (10%).
All three of these groups are similar in descriptive and behavioural characteristics. Being the most significant of the three, the following will focus on the characteristics of the escapers. These are consumers who are seeking a getaway. They want a value packed vacation inclusive of accommodations, meals and entertainment in a casual environment which they perceive as luxurious compared to their everyday lives. Consumers in this segment do not have a geographic preference in terms of destination. Exhibit nine illustrates their choice is based on the ability to visit multiple destinations and the price point.
The Caribbean is the most popular destination for these types of cruisers, because the wide variety of routes and high demand provides a better price point to satisfy their needs. Demographically, this segment mainly consists of the working and middle class. People of all ages and life cycles fall under this segment, while income is the significant determinant of the type of cruise to be taken. It is likely that their disposable income is limited, hence the importance of value proposition. This is probably a well budgeted vacation, therefore the value of every dollar is considered.
Psychographically and behaviourally, these users are content with the break from reality; therefore the opportunity to be care free is luxurious. They take advantage of this rare occasion to spend quality time with family while enjoying the benefit of relaxing since it is likely that their usage rate of this service is light. This segment also occupies the largest ship in order to accommodate the large percentage of the market it attracts. The amenities on these ships allow this demographic to experience much more than they would on a comparable vacation.
The highest priority for the Oasis of the Seas should be placed on this segment as it occupies the largest percentage of the industry, and routes which attract portions of the other three segments as well. Furthermore, this identified segment has needs which are considered basic needs to others, and can be easily spruced up in order to put forth a value proposition to segments with higher demands. The attractiveness of the Caribbean routes which are popular to this segment should definitely be considered as there has been a steady increase in between 2000 and 2009.
If Royal Caribbean were to target routes in developing markets they would not effectively attract the segments that are the most profitable. With the amount this ship is supposed to offer, elaborate opportunities are available to encourage users to spend more time on board, thus increasing on board spending and profits. By focusing on this segment, Royal Caribbean will be able to market the features of the ship that will simultaneously result in full market coverage. Premium cruisers demographically consist of consumers of upper middle or lower upper classes. They prefer an adult oriented atmosphere therefore they must be middle aged.
They are also engaged in a busy stage of their lifecycle as they are in established careers with well-earned salaries allowing them to have a healthy disposable income. This group prefers cruise vacations because it allows them to visit multiple destinations and enjoy fine dining.. Although their daily psychographic lifestyle may not be lavish, this is their time to enjoy the benefits of their social status. The users in this group are probably not first time users, but are not heavy users as they would need an occasion to initiate the decision to buy a cruise vacation because of their busy schedules.
This segment should be given priority after the contemporary segment because the two have commonalities that can be marketed on the Oasis to deliver value which would satisfy their social needs individually. The luxury and destinations segments are similar in that both of them target the upper class or those with healthy disposable incomes including retirees that are at a stage in their lifecycle allowing them to take longer, exclusive cruises often. People on these cruises demand the finest quality in all respects.
A formal atmosphere with refined white glove service, along with personalized service accounts for value and satisfaction. Psychologically, these users are above all and deserve the best of the best. Therefore, their lifestyles allow them to be regular and heavy users of cruise vacations. Based on their preference, it can be assumed that these segments are hard core or split loyal to the brands they choose because their attitudes are very enthusiastic towards the type of experience they expect and may be hostile towards anything less.
The type of ship is small for both segments, representing the small percentage of the market occupied. Therefore, little priority should be placed on targeting these segments. Users that decide to buy this cruise package will be for the sole psychographic reason of social status to claim they were on the biggest ship in the world. Marketing Mix | Product| Price| Promotion| Place| Variety of themes and destinations| Value based pricing| Communication Channels: magazines, social media, billboards| Various Destinations at one shot| Contemporary, Value Packed Vacations| Average 7. days = $1454 per person | Travel Agents and travel agency brochures| Amenities and entertainment for all in one location| 3-4 star service| $100/$200 dollars per person per night| Online travel agencies | Variety of options available to make reservations| Royal Caribbean, Oasis of the Sea – largest ship in the world| Discounts or group rates available| | | Capacity approximately 4500 (44% more)| | | | Services: dining, shopping, entertainment, spa, activities for all interests| | | |