Introduction
As one of the fastest growing markets within the leisure industry, cruise tourism bridges the gaps between exploration and comfort, providing an alternative way for individuals to envisage the world around them. Due to its increase in popularity, the cruise industry has had to adapt to trends in consumer needs; balancing luxury, exploration and expectation in order to create a unified package that can compete with rival companies within the cruise industry. Focusing on the Viking cruise company specifically, this case study shall illustrate how companies within the cruise industry perform when adapting to pressures and demands by consumers and legislative powers. This includes how Viking have faired against their competitors and where they place in terms of delivering consumer needs; how successful they have been in implementing changes directed by their consumer market as well as by the International Maritime Organization.
As suggested, the cruise industry has seen an unprecedented rise over the last two decades. Zapata and Brida acknowledge such growth within the sector from a ‘small part within the Oceanic passenger industry to a complete and complex vacation business’ (Zapata, 2010, pg.1). In supporting the personal observations of Zapata and Brida, Ross Klein indicates that cruise tourism has increased around 7.2% on an annual basis since 1990; he states that the origins of this growth can be seen across the globe with a substantial increase found in North American cruise destinations particularly (Klein, 2011, pg.1). Current trends within the last few years have shown the increase in merger companies with many smaller, independent firms being swallowed up within larger firm expansion. The cruise industry in particular has seen a huge increase in merger activity in the last decade alone with companies such as Royal Caribbean Cruises, Carnival Corporation and Norwegian Cruise Line Holdings taking center stage (Kleeman, 2014, pg.29). In addition, the absorbing of these smaller firms by the larger companies has lead to the fractioning of larger companies into splinter groups of the original. Viking Cruises can be suggested as one example of this with the introduction of the Viking Ocean Cruises branch in 2013 (Viking Cruises, 2016). Companies such as Viking have a duty to respond to the changes within consumer desires whilst translating a distinct brand message that appeals to a large target audience.
Viking cruises can be considered one of the cruise companies that have had more success in adapting to consumer trends with a vast array of strategies. The company history reflects the growth patterns suggested by Klein. The company was originally set up in 1997 under a Dutch contingent that was headed by Torstein Hagen; the company began purchasing Russian cruise liners and marketing excursion products to the European market. From here, the company expanded into the American market, which Klein indicated has seen the most growth over the last few decades, and began designing new, larger cruise liner models (Viking Cruises, 2016). As indicated previously, 2013 saw a further restructuring of the company with the Viking Ocean Cruise division, catering to the new demand for the new smaller-ship cruising that has seen the development of the sub-company Viking Ocean Cruises.
In examining the deviations within Viking’s company resume, we can see that the company has adapted on several occasions in order to meet market and legislative demands. Firstly, the switch of focus from Europe to headquartering in North America and later, in the development of a sub-company that deals with smaller ocean liners. The former has already been examined and can be linked to a growth in the industry as a whole, with a larger growth margin found within the states. The latter can be considered both a strategically and legislative move from the company. In terms of legislation, MARPOL have indicated the need to decrease and prevent pollution levels; starting in 1988 with the prohibition of plastic waste disposal, legislation has been developed to include prohibitions in the discharge of sewage as of 2003 and the prevention of air pollution and greenhouse gases as of 2005 (International Maritime Organisation, 2016). As a result, companies have had to design new ways in which to make ships more ecologically friendly. One method in which companies can manage this is discreetly in the form of arranged stops that have become increasingly more popular; through this, garbage can be removed from the ship and disposed of effectively without risk whilst guests break from their cruise to visit multiple destinations. It is questionable as to whether this form of cruise has been influenced from the consumer desire or legislative demand with designated ports undergoing significant commercial developments in order to support the growth of cruise tourism. Another method that can be demonstrated through Viking can be seen in the form of the new smaller scale liners that will inevitably comply with new environmentally friendly law, they can effectively reduce the amount of damage done to the atmosphere simply through creating a smaller scaled model that will naturally consume and expand less in terms of harmful emissions.
In the last decade, branding has seen an accelerated upheaval with companies including Viking having to re-target their brands in order to reflect the changes in consumer trends. Firstly, there has been accelerated interest in American cruises as indicated previously, there has also been a move towards providing competitive, cost effective excursions that move more towards experiential desires over relaxation; and an increase in variety in terms of facilities, more stops and where these occur. Whilst catering to a general cliental in terms of whether to offer specific luxury, mid-range or budget services, companies also then need to create distinguishing factors within these criteria that reflects consumer desires. These sub-criterion take on a more fluid nature and may only prove relevant for short periods of time whereas the general brand focus audience will no doubt act as a marker point for the brand and therefore remain relatively constant to highlight the companies longevity and overall reliability. For example, Cooper indicates that the Viking Ocean Cruises has been developed more for the experienced traveller and the itineraries have been designed with longer time in port and more overnights (Cooper, 2013). Through this, Viking has addressed current consumer demands for more time to experience local cultures and less time on the ship itself. When examining Viking’s unique selling point, the brand focus is on providing ‘cultural enrichment and shore excursions that are competitively priced for genuine value’ (Rivet, 2016). Recent trends have emphasized the need for cruise companies to provide competitive excursions to ensure quality, yet provide something that can be considered value for money.
Aside from the company specifications, Viking has acclimatized to current technology trends in order to market their brand. The impact of social media within the marketing sector has proven to be the most effective way of generating company interest, Viking have adopted this in several ways in order to market their products effectively. Firstly, consumers understandably wish to find out as much about the specific cruise they want to book as possible; Viking has introduced a large bank of multimedia images that highlight specific cruise details and create a virtual cruise. Secondly, the company has released an online recipe collection that reflects the cruise destinations (Neisser, 2013). Han and Hwang indicate that food in particular is a critical component of the cruise process and through over 300 hundred interviews, they concluded that providing great food quality was crucial in attaining brand loyalty by repeat business (Han, 2014, pg.245). Similar trends can also be seen in previous decades of the cruise industry, Testa et al suggest that in the 1990s there was an emphasis placed on providing quality customer service with staff members needing to retain the image of prestige and quality within their personal appearance (Testa, 1998, pg.5). In examining brand loyalty, Petrick and Li suggest that consumers demonstrate loyalty for many reasons that are not specifically due to the brand preference and can be behavioural, where, rather than preference, cost effective and value can prove the deciding factor, an idea adopted by Viking to which they intend to make synonymous with their brand (Petrick, 2008, pg.69). Of course, all brands remain competitive and so attempting to create such a singular synchronization between value and Viking can be difficult to attain.
Many of the changes within the cruise industry have had profound effects. Firstly, the progressive popularity of American cruises has seen European companies shift their focus, whilst this risks taking business away from the European sector, the move has allowed for new avenues in cruise industry and has had a major impact on what consumers expect from their excursions. Positives can be seen in terms of the restriction of pollutants and the reduction to environmental damage as well as the new more regular stops that has resulted in the development of commercial areas around coastlines. Competition has proven to be a significant positive for consumers with the industry having to offer value excursions, for the company, competition has generated growth within cruise tourism and is keeping cruise tourism in line with current trends which is in turn expanding its audience beyond the mature adolescents and couples to include solo passengers and younger generations. Despite this, Negative points can be seen within the large-scale companies and their acquisition of independent companies that will have negative effects in terms of local economies.
Conclusion
In drawing conclusions from this, the cruise industry generally can be seen to be progressing across a global market, enticing new clientele and offering new approaches to excursions that allow for a more varied and culturally enlightening experience. Viking in particular can be seen to be adapting well to the changes within the industry and are embracing competition and consumer trends within social media and variety. In suggesting recommendations for the cruise industry, it can be considered within their best interests to continue to develop their excursions and products around consumer desires and embrace feedback and social media response within their brand ethos.
Bibliography
Clare Weeden, J.-A. L. (2011). Cruise Tourism: Emerging Issues and Implications for a Maturing Industry. Journal of Hospitality and Tourism Management , 18, 26-29.
Cooper, I. (2013, May 30th). Cruise News – Business Development – Viking Take To The Oceans. Retrieved July 22nd, 2016, from The 'Financial Times Guide To Business Development' Blog: http://www.financialtimesguidetobusinessdevelopmentblog.com/cruise-news-business-development-viking-take-to-the-oceans/
Gulliksen, V. (2008). The Cruise Industry . Soc , 45, 342-344.
Han, J. H. (2014). Examining strategies for maximizing and utilizing brand prestige in the luxury cruise industry. Tourism Management , 40, 244-259.
International Maritime Organization. (2016, Jan 1st). International Convention for the Prevention of Pollution from Ships. Retrieved July 22nd, 2016, from International Maritime Organization: http://www.imo.org/en/About/Conventions/ListOfConventions/Pages/International-Convention-for-the-Prevention-of-Pollution-from-Ships-(MARPOL).aspx
Kleeman, G. (2014). Global Cruise Industry. Geography Bulletin , 46 (1), 1-5.
Klein, R. A. (2011). Responsible Cruise Tourism: Issues of Cruise Tourism and Sustainability. Journal of Hospitality and Tourism Management , 18, 107-116.
Mark R. Testa, C. S. (1998). Linking job satisfaction and customer satisfaction in the cruise industry: Implications for travel and hospitality organizations. Journal ofHospitaliry & Tourism Research , 22 (1), 4-14.
Neisser, D. (2013, October 22nd). Drew Neisser: How To Do Content Marketing Right. Retrieved July 22nd, 2016, from PSFK: http://www.psfk.com/2013/10/content-marketing-tips.html
Petrick, L. X. (2008). Reexamining the Dimensionality of Brand Loyalty: A case of the cruise industry. Journal of Travel and Tourism Marketing , 25 (1), 68-85.
Rivet. (2016, Jan 1st). Case Studies: Viking River Cruises Inspires Travelers with User-Engagement and Rich Media. Retrieved July 22nd, 2016, from Rivet: http://www.rivet.works/global-river-cruise
Viking Ocean Cruises . (2016, July 1st). Viking Ocean Cruises . Retrieved July 22nd, 2016, from Viking Ocean Cruises : http://www.vikingcruises.co.uk/oceans/?gclid=CjwKEAjwiMe8BRD0ts3Vtv-ohWgSJAAZurk1lNNUrUXqwJq3Hn3vTtkE3s481fyZyxsu-sVHigFyPxoCooXw_wcB
Zapata, J. G. (2010). Cruise tourism: economic, socio-cultural and environmental impacts. International journal of Leisure and Tourism Marketing , 1 (3), 205-226.
