has reduced the room rates to as low as 35 dollars for a room without a view. There are rooms for every income bracket with a presidential suit for 26, 000 dollars per week on the high end.
Cruising is a 30 billion dollar industry with the Norwegian cruising industry ranked third behind carnival and royal Caribbean. Carnival controls 50% of the market whereas royal Caribbean controls 30% with Norwegian in third place at 10%. The Norwegian cruising industry incurred a 63 million dollar loss in 2013 with a 2.1 billion dollar capital. In an attempt to attract consumers, the Norwegian cruising industry has introduced freestyle cruising. Freestyle cruising reduces the number of rules that guest have to adhere to while aboard the ship. The guests are not required to dress in a certain way, there are not set meal times, and liquor is available throughout the day.
The 11 restaurants in the parlor serve more than 12, 000 meals per day with staff working 10 hours a day seven days a week. Most of the income in the Norwegian is from spending on board the ship. More than 25% of the companys income is from the sale of products and services on board the ship. While the consumers spend their money, the staff is busy monitoring the more than 1100 cameras to ensure the security of the guest onboard. Archived footage is important in solving crimes that take place onboard the ship. A major challenge in the industry is rain. It limits the number of activities guest can engage in to indoors and limits the number of income avenues. The current economic environment has dealt a major blow to the industry. Operating at almost 100 million dollars losses and 92% booking rates, freestyle cruising is the only way the company will remain profitable.
Case 4: Cassandra Funds
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