Royal Caribbean SWOT Analysis

Royal Caribbean was founded in the year 1968, with the merge of few shipping companies such as Anders Wilhelmsen & Company, I.M. Skaugen & Company, and Gotaas Larsen, whereas their first ship sailed in the year 1970 with the name of Song of Norway and later with Nordic Prince. Now the line has about 42 different cruise ships.

The Royal Caribbean is the ideal vacations for all kinds of the income level tourist. The Royal Caribbean has been one of the pioneers in the cruise vacations, their business expanded rapidly, forcing them to expand their business by adding more cruise ships and by adding the capacity in their current cruise ships. (Rudi, pg 192, 2003)

Royal Caribbean has an eventful history of making the feel of heaven over the sea where the life used to be an end in the olden days. The development of the cruise ship has increased the transportation facilities along with entertainment and excitement along with the travel.

Since The Royal Caribbean development of their outstanding business many other cruises have started business along with them, making them ready to face the challenging behavior of the market which they had never faced before in the initial stage of their business. (Rudi, pg 192, 2003)


1. Strong Brand Positioning

The Royal Caribbean’s share in the market has always been of a greater chunk. Their services and quality has made a special brand positioning in the minds and hearts of their customers.

2. Market leaders

They have always been among the market leaders, despite of the fact that they are 2nd in the cruise business still they have always been on the winning track.


1. Expenses

As the world is facing the increase in inflation, so does the increase in the expense of the cruise maintenance and staff. The increasing expenses in the cruise can be controlled if things are sorted out in the right time.

2. Marketing decline

Since the decline in marketing has been seen in the company because the awareness in about the brand is so wide-spread that the Royal Caribbean has shown a decline in the marketing area, which has been done in order to decrease the expenses of the cruise.


1. Increase in business

Due to the security reasons in different countries people now prefer not to travel to different countries, instead they decide to go on a cruise instead as it is more safer and reliable than traveling abroad.

2. Increasing Trends

As the trends and the standard of living are increasing, the cruise vacations have also seen a high rise. People tend to plan to go and cruise with family more frequently than they used to go decades back.

3. Increasing facilities

As the cruise travel is gaining more popularity, so more alliances are getting along to provide more and better facilities in the cruise.


1. Security Reasons

Since 9/11 the security of the world has taken a huge turn. Because of many security reasons, traveling has decreased and if any unfavorable incident happens with a cruise than cruise may also end dramatically.

2. Weather Conditions

Weather has always been the concern in the cruise. Due to global warming, green house effects and CFC gas effect etc. the weather conditions has worsened and the likelihood of storms has drastically increased, which is one major threat for the cruise business.


Rudi Sodamin,(2003), Royal Caribbean Holiday Entertaining, Rizzoli, Page 192

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