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What Is The External Environment Of The Cruise Industry

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Analysis: External environment

Economic
The economic climate has a strong impact on the cruise line industry. However, the cruise line industry is growing and more people are traveling today then ever before. As welfare of people has considerably grown despite all possible crises in world economy, anyhow many economic factors are influence to cruise line industry, such as clientele's economic positions, growth in markets, currencies rates when working international and inflation plays a role. Operators of a cruise will be affected under management and operational levels. If fuel price begins to increase, then it will influence operational costs of the company. If interest rates increase then, then it will influence the income of the company. Economic factor plays a major role for the company to be afloat of cruise industry.

Social / Cultural / Demographic
Social …show more content…

The cruise industry provides an increase of tourism industry within the ports and its country. For example, restaurants, hotels, taxis, theme parks, museums, shops, taxi drivers and travel guides are all positively affected as it will increase local employment within the city and its ports. Anyhow, cruise industry will brings large sums of revenues to the local city and governments. That is why, I think this enhances the relationship with cruise companies and Politicians will be efficient both sides.

Legal
Legal factors are taking one of important segment for the cruise industry. The cruise industry has been strictly monitored for many types of law violations, such as human resource department, the consumer, violations of health and safety. If any cruise company is caught, having broken any of these laws, heavy fines or criminal penalties can follow from it. Legal occurrences can damage the political and government relations. Therefore Legal factors play an important role to the industry of a cruise.

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