Carnival Cruises<Tab/><Tab/><Tab/><Tab/><Tab/> In 1972 American Travel Services, Inc., along with Ted Arison, bought two ships from the Canadian Pacific Empress Lines for $6.5 million. These two ships were named the Marti Gras and the Carnivale. Things did not begin well for this group of investors. On its first voyage, the Marti Gras …
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…fees. With the acquisition of their own private resort Island, they are able to offer world class hotels, shops, restaurants, and entertainment not only on their ships, but also at their own private ports of call. This horizontal integration with concentric diversification adds value for the customer and helps to gain repeat cruisers. This cost/value leadership differentiation gives Carnival Corporation the something special it needs to satisfy the growing demand of today's cruise vacationer.