Your Turn: Applying Your Skills at Carnival Corporation After the Costa Concordi

Question

Your Turn: Applying Your Skills at Carnival Corporation

After the Costa Concordia shipwreck and several high-profile engine fires crippling cruise ships owned by Carnival or one of its ten subsidiaries, the company has embarked on a comprehensive safety overhaul. Among several initiatives, the cruise line is improving redundant systems. Each ship of the Splendor class has already been retrofitted with new equipment designed to activate more reliably the existing backup generator when the other fails. The company hopes that improvements to the two separate engine rooms will make devastating power blackouts at sea much less likely.

Unfortunately, the Carnival Starlight requires extensive repairs. Parts needed for the retro-fit are made in Asia and will not arrive in time for the vessel’s January voyages. Carnival must notify more than 10,000 passengers that they cannot sail on January 16, 23, and 30 as planned. Scrambling to offer remedies, the guest services staff identifies two choices. One is a full refund of the cruise fare, any air travel provided by Carnival, company-provided trip insurance, as well as government fees and taxes. The refund will be issued automatically within ten business days unless the traveler chooses the second option, rebooking the voyage.

Vacationers wishing to reschedule their trips must proceed to Carnival.com (Links to an external site.)Links to an external site. immediately. They can choose to sail on another ship in January or on the Carnival Starlight at a later date but must complete their voyage within 24 months after the original departure date. In both cases, the cruise rates will not increase. Alternatively, travelers choosing to rebook can opt for a 25 percent discount on any two- to nine-day Carnival cruise within 24 months. Change fees for independently purchased air travel will be reimbursed up to $200 in onboard credit. Proof of payment must be faxed to the Guest Services Department at 305-460-6744. Travelers can call the Guest Services Department at 1-877-CARNIVAL.

Your Task. Assume that you are a trainee at Carnival. The assistant to the vice president of guest services asks you to draft the bad-news letter to 10,000 customers.

Ponder your strategy. Will you use a direct or an indirect strategy? Explain Why?

Decide whether you should apologize, but be sure to explain the options clearly to your disappointed readers. You can submit as written text, letter, or email.

Explanation / Answer

Strategy: Use a direct communication strategy. The reason behind this is that the disruption is result of additional safety measures for the passengers. The work that is being done on Carnival Starlight is for the passengers’ safety. As a result, the repercussions of the direct message may provide dissatisfaction in the short term but will definitely resonate with the customers in the long term. The transparency shown by the company will help establish a relationship and brand image within the industry.

The message could be as shown below

Dear Patron,

Greetings from Carnival Corporation!

In the light of recent shipwrecked event in one of our competitors we have undertaken a project to make our cruise ships more safe and stable. This task will make our Starlight line of ships more reliable than what it is today and will push our fleet to a new pinnacle when it comes to safety measures. However, this project is estimated to continue till the end of January and will disrupt some of our services offered.

Considering the above, we regret to inform you that the reservation made by your on [Date here] will not be available. However, we are glad to offer you the following options

In case you choose to avail the refund option, please do send the copy of the receipt and the proof of additional associated expenses through fax at 305-460-6744.

If you choose the reschedule the journey, then we are glad to provide you with the following.

You may reschedule your journey anytime 24 months from the original departure date

You may choose Carnival Starlight at a later date or choose any other fleet on the same date (original date)

Any associated cost (such as airfare) will be reimbursed using a $200 onboard credit

You are entitled to a 25% discount on rescheduling the journey

You may choose from any two-nine day cruise on any of our fleet

I hope these options help in reducing the inconvenience caused. We look forward to hearing from you.

Regards

[NAME]

[Designation & contact details]

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