The main barrier to entry is the high capital requirement. It is difficult for new companies to enter the cruise industry due to the financial resources required to purchase a ship and the high costs of maintaining and operating ships. There are few cruise ship builders in the world, so purchase prices are high. The market is dominated by a few large companies, making it difficult for a new entrant to enter the industry. A third barrier is switching costs. Cruise companies offer their existing customers membership programs with deals and discounts, which make customers reluctant to switch to a different company with higher fares. For example, the Carnival Platinum Card is given to customers for their tenth cruise. Perks include “priority boarding, personal guest service staff and personalized stationery” (carnival.com). A fourth barrier to entry is very high product differentiation. Compared to traditional vacation packages, the cruise industry sells a truly unique product: the cruise experience. With three market segments: contemporary, premium and luxury, the cruise industry offers a variety of products and services for every type of customer. For example, Carnival offers single cruises, but Disney Cruise Line is a more family-oriented cruise line that offers cruises for adults, children, and teens. Fifth, the barrier to entry is low due to more stringent environmental regulations imposed by regulatory bodies that oversee the cruise industry both in the United States and abroad. Rivalry among existing companies: High Rivalry among existing cruise companies is high due to the highly competitive industry. The cruise industry is controlled by a small number of companies (close to half the charter during the economic downturn), but they are slowly recovering as the stock price has risen in recent years. The leisure cruise industry is one of the fastest growing sectors in the travel industry and offers customers a unique cruise experience at a low price. It is estimated that the industry will continue to increase sales and profitability in the future with the help of new competing strategies.Works Citedhttp://www.cruising.org/pressroom-research/cruise-industry-source-book/profile-us -cruise-industryhttp://en.wikipedia.org/wiki/Royal_Caribbean_Cruises_Ltd.http://www2 .ncl.com/about/leadership-teamhttp://cruises.lovetoknow.com/wiki/Cruise_Vacation_Benefitshttp://www.entrepreneur .com/tradejournals/article/149214179.htmlhttp://ncseonline.org/NLE/CRSreports/07Dec /RL32450.pdfhttp://www.prweb.com/releases/cruiseship/injurylawyer/prweb8226937.htm