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Carnival Corp. in hot water after Triumph cruise ends in disaster February 16, 2013

Posted by rmshepard in Uncategorized.
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Carnival Corp. has tried to make its cruises bring to mind carefree partying. That image has been tested as of late. The Carnival Triumph recently lost power with over 4000 people on board, and left them on the ship – without air conditioning and proper toilets – for 4 days. As conditions got worse on the ship, the news media showed pictures of passengers begging for help. Carnival promised to make the situation right by issuing full refunds, discounts on future cruises, and $500 compensation per passenger.

Will the latest incident hurt Carnival? Experts say it depends. Douglas Quinby, a researcher in the travel industry, suggested, “This may spur some additional and perhaps needed engagement within Carnival. There may be some short-term negative impact on their bookings, [but] you have to keep in mind that consumer attention is very flighty.” Other critics, though, say that Carnival needs to respond more effectively to the crisis. According to one analyst from CNN, the company needs to articulate more sincere concern for the passengers on the ship, communicate more clearly what they are doing to fix the problem, and address the public more directly to repair its image.

For more on the Triumph disaster, see the following video:

Discussion Questions:

1.  How does the Carnival Triumph disaster impact Carnival Corp.’s image? Do you think it will hurt future sales? Why, or why not?

2.  Was the company’s response to the Triumph disaster sufficient? Why, or why not? If not, what else should the company have done?

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