Celebrity Cruises: Quality and Feedback

Overview:
Twenty years ago, Celebrity Cruises, Inc., decided to establish itself in the premium market by offering an "upscale experience at an intelligent price." Evoking images of luxury similar to the Ritz-Carlton brand, this "hotel on the water" treats quality as the heartbeat of the company. Consequently, Celebrity has consistently been awarded the "Best Premium Cruise Line." In the cruise and hotel industries, quality can be hard to quantify. Travelers are buying an experience—not just a tangible product. Creating the right combination of elements to make the experience stand out is the goal of every employee, from cabin attendants to galley staff to maintenance and entertainers. The captain even plays an important social role, often hosting dinners for guests.

"Our target audience consists of savvy, discerning guests who know what they want from the cruise," says Brian Abel, Associate VP for Hotel Operations. "We meet their needs by being the best in the competitive class of modern luxury ships."

Crew-to-guest ratios at Celebrity and other premium lines are 1 crew member for every 2 guests. Employees are expected to greet guests with a formal style, to say "good morning" instead of "hi" and "with pleasure" instead of "no problem." With crew members from 70 countries, preferred phrases, dress codes, and other customer interactions are detailed in employee training manuals. Employees sign 4- to 9-month contracts and typically take 6-8 weeks off. They have demanding jobs, often working 7 days a week, but even with intense schedules, most Celebrity staffers remain on the job for 5 to 7 years.

Food:
Food is a very important part of the cruise experience. "Food is the number-one reason people rebook a cruise," says Abel. Everything served aboard a Celebrity ship is prepared from scratch. About 200 people work in the galley in a structured, well-planned operation, using years of historical data to forecast demand for each component of each meal.

Feedback:
Guest surveys are provided online at the end of each cruise, and guests complete them at a high rate (about 85%), strongly encouraged by their cabin attendants. The surveys serve as a measure of overall satisfaction and have two additional purposes:
1. They are used as a brand marketing tool comparing Celebrity to other cruise lines, hotels, and competing entertainment venues.
2. They provide management with specific feedback, down to the individual employee level in some cases.

Abel personally reviews results of each completed cruise within 48 hours and takes action if defects are found in any aspect of the experience.

Net Provider Score (NPS):
Celebrity's main quality feedback tool is called the Net Provider Score (NPS), which tallies the guests' answers to a wide series of questions about their experience. The critical question is, "How likely would you recommend Celebrity Cruises to a friend, family member, or colleague?" Scores of 9-10 on this question label customers as "advocates." A 7-8 is "neutral," and a score of 6 or below is a "detractor."

The NPS computation is simple: The percentage of detractors is subtracted from the percentage of advocates. For example, if 70% of guests score the cruise a 9-10, 17% score it a 7-8, and 13% give a 6 or less, the NPS = 70 - 13 = 57. An elite line tries to attain a score over 60 on each cruise. Celebrity averages a 65.

Questions:

1. What unique aspects of the cruise industry make quality service more difficult to attain? What aspects help raise quality?

2. How does the cruise operation differ from that at a land-based hotel?

3. How could control charts, Pareto diagrams, and cause-and-effect diagrams be used to identify quality problems at Celebrity?

4. Suppose that on two successive cruises of the same ship, the cruise line receives NPS scores of: (Trip 1) 78% "advocates," 4% "neutrals," and 18% "detractors" and (Trip 2) 70% "advocates," 20% "neutrals," and 10% "detractors." Which would be preferable and why?

1. The cruise industry presents unique challenges in delivering quality service due to the intangible nature of the product and the focus on creating a memorable experience for guests.

2. Celebrity Cruises aims to achieve quality by focusing on various aspects such as employee training, guest feedback, and meticulous planning in areas like food preparation and crew-to-guest ratios.

3. Cause-and-effect diagrams, also known as fishbone diagrams, can aid in identifying the root causes of quality problems by exploring various potential factors and their relationships.

4. Guest satisfaction is measured through surveys and the Net Promoter Score (NPS) system, where scores above 60 are considered excellent.

1. In the cruise industry, quality service can be more challenging to attain compared to other sectors due to the intangible nature of the product. Cruise companies like Celebrity Cruises must create an exceptional experience for guests, taking into account factors such as hospitality, entertainment, and overall guest satisfaction. However, Celebrity Cruises strives to achieve quality through several strategies. They invest in comprehensive employee training programs that emphasize formal interactions, dress codes, and specific phrases to enhance the guest experience.

2. Additionally, Celebrity Cruises actively seeks guest feedback through surveys, which serve as a quality feedback tool. The net provider score (NPS) is a key measure used to gauge guest satisfaction and loyalty. By analyzing NPS scores and other feedback, the company can identify areas for improvement and take appropriate actions. Celebrity Cruises also emphasizes the importance of food quality, preparing meals from scratch and leveraging historical data to forecast demand accurately.

3. Control charts, Pareto diagrams, and cause-and-effect diagrams can be utilized by Celebrity Cruises to identify quality problems. Control charts can track key performance indicators, Pareto diagrams can prioritize quality issues based on their impact, and cause-and-effect diagrams can identify potential causes of problems.

4. In terms of NPS scores, Trip 1 with 78% advocates, 4% neutrals, and 18% detractors would be preferable compared to Trip 2 with 70% advocates, 20% neutrals, and 10% detractors. A higher percentage of advocates indicates a higher level of customer satisfaction and loyalty. However, both trips would require further analysis to address areas of improvement and maintain a consistent focus on quality service.

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