Carnival Corporation fully recovers shares after last year’s Zika-related disturbs. Analysts estimate earnings of 35 cents a share that will increase the company's revenue to $3.8 billion.
The company has also improved customer confidence by maintaining a favorable public image so travelers can believe in Carnival's capacity of safekeeping its users from diseases or viruses. In addition, Carnival has benefited from low fuel costs and higher booking prices. It is certain they will keep these buoying results as they continue their success in countries such as China, the fastest-growing market for tourism.
Furthermore, the corporation have been investing prudently in recent years and its return on invested capital has risen for four consecutive years. In fact, their invested capital jumped to 8.9% in fiscal 2016.
With investors eyeing Carnival’s potential, the corporation's shares have rarely sharp swings after earnings, and their success overseas continues with no signs of seasickness in the near future.
Relevance to Marketing:
Carnival has adopted the marketing concept because they have analyzed the needs of their customers, made decisions to satisfy these needs, and increased the company's profit. In fact, by improving customer confidence after last year's Zika-related concerns, travelers will certainly reserve more ship compartments allowing the company to elevate their booking prices and offset high fuel costs. Then there is Carnival marketing itself in Asia, particularly in China as more than a million of Chinese citizens go on cruises every year. As a matter of fact, the market in China is profitable and keeps on growing up representing an important segment of Carnival’s overall business. For instance, if booking prices keep on going up and international growth remains strong, Carnival's equity and remunerations will keep increasing permanently.
Application to Other Businesses:
Carnival's plan to attract clients after recent unwelcome events should be a precedent for other businesses as the corporation's strategy has proven to be successful and decisive. In fact, Carnival has increased their earnings by elevating booking prices because they have improved consumer confidence to attract more customers every day.
Name: Javier León
Class: MKTG 3343
Article: Carnival Shareholders Are Having Fun Now, Too
Link to WSJ Website: https://www.wsj.com/articles/carnival-shareholders-are-having-fun-now-too-1490641651
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