After the costa concordia shipwreck and several


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.

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Operation Management: After the costa concordia shipwreck and several
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