MS Oasis of the Seas enjoyed the status of being the largest cruise ship in the world at the time of its launch in 2008, till 2010, when her sister ship MS Allure of the Seas took over that position. The ship was peculiar in many aspects including its size, capability to ferry over 6000 passengers and 2000+ crew members and its introduction into the market when the whole world was gripped under severe economic recession. This article will analyze the external factors that affect the business and operations of this mega liner. The factors considered for analysis are political, economic and technological.
Political
One of the major political factors that may impact the cruise liner is the indifference from the ports of call as accommodating the ship of this size may require extensive re-design of the platforms and constant dredging of the channels, adding to the expenses. Also, this ship has the potential to take out smaller ships from the schedule as more number of tourists can be accommodated in this mega cruise liner which is a resort by itself and offers entertainment options to her travelers which no other ship that is currently in operation can match with. Another growing concern is the security; as such a ship might attract unwanted attention necessitating heightened security measures to ensure the safety of its passengers. Yet another factor is the environmental concern as a ship of this magnitude consumes a large quantity of fuel and generates waste of gargantuan proportions.
Economic
As mentioned earlier, the ship was launched during the global recession time, but it managed to float around as the ship was new and the novelty factor attracted the target market. But a recession on similar lines today or in the future may impact its operations as the primary target of the ship is contemporary category tourists. Also, as mentioned in the case study, the average profit per passenger leaves no room for added expenses . A rise in any of the expenses parameters may impact its profitable operations.
Technological
Owing to the advances made in the area of ship building technology, the manufacturers are able to float vessels made with extreme precision, which are easily maneuverable and loaded with gizmos to ensure a smooth and safe voyage. Technology is getting upgraded at a faster pace and the older ships have to keep themselves updated constantly to stay in the competition. Also, Royal Caribbean should focus more on promoting individual cruise bookings and reduce dependence on agents as customers in future may prefer that over walking to an agent’s shops to plan their packages. This will also help the company to save the agent’s commissions.
References
Ken Mark, M. T. (2012, June 5). Oasis of the Seas: The Largest Cruise Liner in the World. London, Ontario, Canada.
