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Bus 499 Assignment 2: External and Internal Environments

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Submitted By jamie21
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Assignment 2: External and Internal Environments
Professor Rufus Robinson
February 2, 2014
Business 499

The industry that I chose to research is the travel and cruise ship industry. The cruise industry is a small part of the travel/leisure industry. The U.S. cruise industry has experienced substantial growth in recent years. Nationwide, direct spending by cruise lines and passengers increased from $9.4 billion to $14.7 billion, (56%) between 2000 & 2004. Including multiplier effects, the U.S. cruise industry supported 315,830 jobs and provided $12.4 billion in wages and salaries in 2004.
In recent years, the cruise industry has seen remarkable growth in the ports of Bar Harbor and Portland, Maine. Bar Harbor hosted 76 cruise ship visits in 2005, a 36 percent increase above the 56 ships that came to town in 2001. According to Portland’s Seaport Statistics, Maine’s largest city hosted over 40,000 cruise ship passengers in 2001 and 2002, up from about 14,000 passengers in 1999. Portland welcomed 45,225 cruise ship passengers in 2005.
Cruise ship passengers provide a stimulus to the local retail economy of host ports.
Todd Gabe and Thomas Allen: http://umaine.edu/centro/files/2011/07/ME-Cruise-Ships-2005.pdf
Cruise lines are differentiated according to the market that they serve. The industry is divided into three different segments, luxury, premium and contemporary. The luxury segment caters wealthier clientele and the price starts at more than $500 daily, whereas the premium segment is geared towards the customers that are seeking upscale quality at more affordable prices in the range of $250 - $350 per day. The contemporary segment is marketed toward families and younger individuals with limited discretionary funds. This segment can pay anywhere from $99 - $249 per day. The cruise
There are two different geographic segments of the cruise

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