Cruise- Line Company

Name

Institution

Cruise-Line Company

Question 1-3

The growth of the cruise-line company has been boosted by the development of trans-oceanic air service, which discouraged most of the ship companies from the market, leaving the cruise-line company. This led to expansion with the idea of a fun-ship vacation for people to travel for fun or tourism. Also, the cruise company is not subject to any country’s revenue; hence do not pay for port fees during travel. Lack of such payments reduces its costs, thus increasing profits. It benefits from government services such as government made ships, which makes it more stable.

Question 1-4

Carnival cruise lines developed strategies to curb global changes. With the development of a virus that causes diarrhea and vomiting, the cruise line company sanitized infected ships and all other objects inside the ship. This made it safer than the airlines hence increasing its passengers. Also, during recessions, the company provides an all-inclusive per diem bargain price, which encourages passengers to board the ships and get the discounts. Therefore, the company is not profoundly affected during the recession. Besides, as an added advantage, the company gives a full refund to passengers in cases of canceled trips due to bad weather.

Question 1-5

The income level of people influences the success of the international cruise industry. A growth in income encourages tourism hence more customers for the company. A decrease in income only allows people to cater for basic needs and fail travel. Uncertainty of gasoline prices, taxes, and mortgage interest rates influences the economy, consequently affecting people wishing to take cruises. The soft European economy may cause less income with more expenses to cater to hence reducing the amounts used for traveling. This effect reduces the number of customers, therefore, reducing cruise company profits and affecting its success.

Question 1-6

Cruise lines company is exposed to many ports that have not yet been untapped by the company. The low number of people traveling through cruises in the US may be due to untapped destinations. Therefore, the company should make trips to new ports and at an affordable price to attract more customers. Also, making their services more quality compared to airlines gives them an added advantage. The condition involves comfortability in the ship, sanitation, friendly and instant services, and excellent customer relationships. With such, more consumers will be attracted to cruises to try out the new destinations at an affordable cost and to enjoy the standard services (Chen, Lijesen & Nijkamp, 2017). More advertisement may also be included to make people aware of the services offered by the company, and the benefits received.

Question 1-7

In the future, there is a risk that people who are used to taking a cruise are becoming regular customers and might get bored visiting one port and getting the same experiences and may prefer trying something new like the airlines. This factor would affect the success of the company due to declined passengers. To avoid such risks; the company should make some of the new porta their destinations and provide new plans and experiences for the passengers. If it occurs, cost discounts and creating partnerships with other businesses may attract them back. This is through connecting passengers to their intended services and receiving special treatment after referral. Economic changes affect the income of individuals hence harming travel. The company cannot control economic factors, thus need strategies to retain its consumers. This approach is through offering gifts and providing exclusive deals on frequent customers.

Question 1-8

Cruise-line company is a Panama company but with its headquarters in London and Miami. Legally, under the tax code, it is allowed to avoid paying taxes to any government. This act needs a change since the company use resources and federal agency services in its daily operations (Gribnau & Jallai, 2017). The support and services have their values; hence the company should pay taxes to cover the expenses than base it on other companies and individuals. As the company buys ships, the cost should integrate income tax as it is built using government resources and is expected to serve for a long time to generate revenue. Therefore, ethically, it is wrong to avoid the tax as the burden is put on other parties. Tax payment is a moral obligation.

References

Chen, J., Lijesen, M., & Nijkamp, P. (2017). Interpretation of cruise industry in a two-sided market context: An exploration on Japan. Maritime Policy & Management, 44(6), 790-801. doi: 10.1080/03088839.2017.1335898

Gribnau, H., & Jallai, A. (2017). Good Tax Governance: A Matter of Moral Responsibility and Transparency. Nordic Tax Journal, 2017(1), 70-88. doi: 10.1515/ntaxj-2017-0005