Reference no: EM133381591

Case Study: Cruise ship traveling has become big business. Many cruise lines are now competing for customers of all age groups and socioeconomic levels. They offer all types of cruises, from relatively inexpensive 3- to 4-day cruises in the Caribbean, to 12- to 15-day cruises in the Mediterranean, to several-month around-the-world cruises. Cruises have several features that attract customers, many of whom book six months or more in advance: (1) they offer a relaxing, everything-done-for-you way to travel; (2) they serve food that is plentiful, usually excellent, and included in the price of the cruise; (3) they stop at a number of interesting ports and offer travelers a way to see the world; and (4) they provide a wide variety of entertainment, particularly in the evening. This last feature, the entertainment, presents a difficult problem for a ship's staff. A typical cruise might have well over 1000 passengers, including elderly singles and couples, middle-aged people with or without children, and young people, often honeymooners. These various types of passengers have varied tastes in terms of their after-dinner preferences in entertainment. Some want traditional dance music, some want comedians, some want rock music, some want movies, some want to go back to their cabins and read, and so on. Obviously, cruise entertainment directors want to provide the variety of entertainment their customers desire-within a reasonable budget-because satisfied customers tend to be repeat customers. The question is how to provide the right mix of entertainment. On a cruise one of the authors and his wife took a few years ago, the entertainment was of high quality and there was plenty of variety. A seven-piece show band played dance music nightly in the largest lounge, two other small musical combos played nightly at two smaller lounges, a pianist played nightly at a piano bar in an intimate lounge, a group of professional singers and dancers played Broadway-type shows about twice weekly, and various professional singers and comedians played occasional single-night performances. Although this entertainment was free to all of the passengers, much of it had embarrassingly low attendance. The nightly show band and musical combos, who were contracted to play nightly until midnight, often had less than a half-dozen people in the audience-sometimes literally none. The professional singers, dancers, and comedians attracted larger audiences, but there were still plenty of empty seats. In spite of this, the cruise staff posted a weekly schedule, and they stuck to it regardless of attendance. In a short-term financial sense, it didn't make much difference. The performers got paid the same whether anyone was in the audience or not, the passengers had already paid (indirectly) for the entertainment as part of the cost of the cruise, and the only possible opportunity cost to the cruise line (in the short run) was the loss of liquor sales from the lack of passengers in the entertainment lounges. The morale of the entertainers was not great-entertainers love packed houses-but they usually argued, philosophically, that their hours were relatively short and they were still getting paid to see the world. If you were in charge of entertainment on this ship, how would you describe the problem with entertainment: ? Is it a problem with deadbeat passengers, low-quality entertainment, or a mismatch between the entertainment offered and the entertainment desired? ? How might you try to solve the problem? ? What constraints might you have to work within? ? Would you keep a strict schedule such as the one followed by this cruise director, or would you play it more by ear? ? Would you gather data to help solve the problem? ? What data would you gather? ? How much would financial considerations dictate your decisions? Would they be long-term or short-term considerations? *There was also a moderately large onboard casino, but it tended to attract the same people every night, and it was always closed when the ship was in por

Questions:

A, If you were in charge of entertainment on this ship, how would you describe the problem with entertainment: Is it a problem with deadbeat passengers, low-quality entertainment, or a mismatch between the entertainment offered and the entertainment desired?

b, How might you try to solve the problem?

c, What constraints might you have to work within?

d, Would you keep a strict schedule such as the one followed by this cruise director, or would you play it more by ear?

e, Would you gather data to help solve the problem? What data would you gather?

f, How much would financial considerations dictate your decisions? Would they be long-term or short-term considerations?