Cruise

CRUISE SHIP INDUSTRY
INTRODUCTION
Introduction
A cruise is defined as to make a trip
by sea in a liner for pleasure, usually
calling at a number of ports
It is characterized by the ship being

similar to a mobile resort, which
transports passengers (guests) from
place to place.
floating hotels.
resort facilities comprise 75% of the
ship
These floating resorts mimic their

land-based counterparts with
restaurants, bars, sports facilities,
shopping centres, entertainment
venues, communication centres, etc.
Cabins are becoming larger and more
luxurious. The trend is for more
cabins to have windows and/or
balconies.
Cruise companies are increasingly

promoting
and positioning their brand names to
enable
customers to identify the products as
competition grows.
For instance, Carnival Cruises Lines

associates the characteristics of fun
ships with its brand name, while the
Queen Elizabeth 2 suggests a more
exclusive image and unique
experience with its promotional
theme, for once in your life, live.
Disneys Cruises create a distinct
brand appeal for children.
Davidoff and Davidoff (1994) outlined five specific

features of cruises that appeal to travellers:
1. Passengers have the opportunity to visit a variety of
places in a short period of time without the problems
of other modes of travel.
2. The ships are self-contained.
3. Cruise ships have a cruise director and staff whose
sole function is to make sure passengers have an
enjoyable time.
4. High-quality food is served in elegant style.
5. Everyone usually begins and ends their vacation on
the same day.
Industry Growth
Research they had commissioned in
2004 showed that 30 million
Americans had expressed an intent
to cruise during the next 3 years
(CLIA, 2005a).
during the last 15 years cruise ship

passengers have increased by an
average of 8% each year, and in
recent years as much as 15%. They
also indicated that the industry is
worth US$23 billion a year (CLIA,
2005b).
The year 2004 saw the launch of the

then worlds largest cruise liner,
Queen Mary 2 (QM2), costing US$800
million and carrying around 3100
passengers and over 1000 crew
Allure of the Seas, owned and operated by Royal Caribbean International, is thebiggest
cruise shipin the world with a length of 1,187.050 ft (360 m) and a beam of 208 m.
Built at a cost of USD 1.8 bn, it has 2,706 staterooms with a max capacity of 6,296.
Safety issues also require scrutiny,

especially as the ships are becoming
larger and are visiting relatively
remote areas such as the Arctic and
Antarctic. The sinking of the Sun
Vista in the Strait of Malacca on 21
May 1999 highlighted once again the
vulnerability of cruise ships.
Demand
A recent analysis of the cruise market shows that todays
cruise buyer is a married baby boomer who loves to travel
and does so frequently. Baby boomers are the heart of the
cruise market. As many as 34% of cruisers are between the
ages of 35 and 54. Three in four (76%) cruisers are married,
and two in five (44%) are college graduates. Only one in
four (25%) cruisers is retired. Families are an important
segment of the cruise market. While a spouse is the most
likely cruise companion, 16% of cruisers bring children
under age 18 along on a cruise. Cruisers are frequent
travellers. They average 3.8 vacation trips a year and 18.6
nights away from home. They also rely on travel agents
with as many as nine out of ten (89%) cruisers who used a
travel agent to book their last cruise.
Worldwide cruise demand.

1995 5.67
2000 9.61
2006 16.00 (est)
Average age of cruisers.
1995 65
2000 55
2006 45
Favourite parts of the cruise included

food (29%), spending time with
family (20%), picture-perfect weather
(18%), rest and relaxation (16%) and
romance (12%). Caribbean cruises
remain the most popular in the
world.
Supply
The cruise industry classifies ships
according to size, number of
passengers, and state rooms
(Mancini, 2000). They range from
very small or micro (under 10,000 t
and 200 passengers) to the
megaships (over 70,000 t and more
than 2000 passengers;
Cruise ship categories.

Boutique 15 <200
Small 525 200500
Mid-size 2550 5001200
Large 50100 12002400
Mega 100150 24004000
Source: After Ward (2005).
The new cruise ships currently being

built are designed for new generations
of passengers with broader, more
varied interests. In a bid to outdo each
other cruise companies are investing in
the biggest, grandest, first, such as
the first wedding chapel, ice rink, inline skating track or rock-climbing wall
Berlitz top ten ships

1 Europa
2 Sea Dream I
3 Sea Dream II
4 Seabourn Legend
5 Seabourn Pride
6 Seabourn Spirit
7 Queen Mary 2
8 Silver Shadow
9 Silver Whisper
10 Hanseatic
2005.
Hapag Lloyd Cruises 1858
Seadream Yacht Club 1790
Seadream Yacht Club 1790
Seabourn Cruise Line 1786
Cunard Line 1764
Silversea Cruises 1757
Silversea Cruises 1757
Hapag Lloyd Cruises 1740
Cruise lines
Carnival Corporation is the largest
company
Royal Caribbean Cruises and
Star Cruises Group
Cruise destinations
Climate is a major determining factor
in ship destination deployment. This
leads to the relocation of fleets from
one destination to another.
The main cruising grounds are North

and Central America (57% market
share), Europe (24%) and the rest of
the world (16%), The main cruising
ground is the Caribbean based on its
proximity to the North American
market, followed by the
Mediterranean Alaska and the Pacific
regions
Cruise products
Whereas in the past a typical cruise
lasted for a number of weeks, over recent
years short cruises have been introduced
to meet the latent demand. Short cruises
are relatively inexpensive and offer value
for money, and provide the opportunity
for first-time cruisers to try this style of
holiday. In a time-strapped world they
are also more convenient for families and
busy executives.
The worlds largest cruise

ships
No. Ship Cruise line Tonnage

1 Freedom of the Seas Royal Caribbean International 158,000
2 Queen Mary 2 Cunard Line 148,528
3 Explorer of the Seas Royal Caribbean International 137,308
4 Voyager of the Seas Royal Caribbean International 137,280
5 Adventure of the Seas Royal Caribbean Cruises 137,276
6 Mariner of the Seas Royal Caribbean Cruises 137,276
7 Navigator of the Seas Royal Caribbean Cruises 137,276
8 Caribbean Princess Princess Cruises 116,000
9 Diamond Princess Princess Cruises 113,000
10 Sapphire Princess Princess Cruises 113,000
Major cruise corporations

Rank Parent group No. of ships Cruise lines
1 Carnival Corporation(70) Carnival Cruise Lines,
Holland America Line, Windstar, Costa Crociere,
Cunard, Seabourn Cruise Line, P&O, P&O
(Australia), Princess Cruises Swan Hellenic, Aida
Cruises
2 Royal (27) Royal Caribbean, Caribbean
International Cruises, Celebrity Cruises
3 Star Cruises (19) Star Cruises Group, Norwegian
Cruise Line, NCL America, Orient Lines
Theme cruises have existed since the

earliest days of cruising, but cruise
lines began marketing themed
cruises in the early 1980s as a way
to differentiate themselves to gain an
edge. Popular theme cruises have
included a focus on dance, music,
food, wine, and health and well-being
Crystal Cruises offer a Wine and Food

Festival, Health and Fitness Cruises,
Big Band and Jazz Cruises
Major cruise destinations

1 Caribbean 46
2 Mediterranean 11
3 Alaska 9
4 Northern Europe 8
5= West Mexico 6
5= Panama Canal 6
7= South Pacific 2
7= South America 2
9 Other 10
Total 100
The Celebrity Cruises ship Celebrity has

dedicated conference facilities installed
by Sony. It has a conference hall that can
accommodate 242 people and is
equipped with the latest audiovisual
systems, simultaneous language
translation capability, the capacity for
multimedia presentations, computer
generated graphics, video conferences
via ship to shore satellite, etc.
Star Cruises has been promoting its

Meetings At Sea programme to the
Meetings, Incentives and
Conferences Industry for several
years, and in 2005 it staged the
biggest offshore conference of its
kind ever held in the South-east Asia
region.
Recently Celebrity Cruises teamed up

with Cirque du Soleil to offer passengers
a unique on-board entertainment
experience on its Millennium-class ships
Constellation and Summit. The
observation lounges on the ships were
transformed into the Bar at the Edge of
the Earth, where Cirque du Soleil
characters took the stage for 2 hours
each evening.
The latest cruise liners have large health

centres incorporating the latest in hightech muscle exercising, aerobic and
weight-training equipment. Spas are
regularly voted by passengers as being
far superior to land-based spas and all
new cruise ships have large areas
devoted to health and well-being, and
spa treatments are one of the biggest
onboard revenue generators.
Carnival Cruise Lines has introduced

specially designated low-carb dining
selections on dinner menus
throughout the fleet. Main dishes
comprise vegetables, meat and fish,
and for each item on the menu the
number of carbohydrate grams is
written alongside it.
Impacts
Sales taxes generated by local governments as a result of local
spending by cruise ship passengers, crew and from cruise lines
directly;
transient room taxes paid by cruise passengers;
revenues from fees paid by cruise lines and cruise passengers
including docking fees, littering fees and other port charges;
garbage disposal fees and charges for water sales;
passenger fees including admissions and payments for medical
services;
tax payments made by businesses selling goods and services to
cruise visitors or sales taxes paid by business;
local purchases in support of their business operations;
secondary or indirect tax revenues (such as sales and property tax
payments) made by employees (and their dependants) of the cruise
industry.
Revenue raising
In the past cruise ships were sold as all-inclusive
vacations, i.e. once the fare was paid, there were
few extras to pay for items other than those of a
personal nature such as for shopping, alcoholic
drinks and of course, end-of-cruise tips. Today that
has all changed and the all-inclusive element has
given way to a user-pays situation. This includes
on-board revenue centres that include optional
extra-tariff restaurants and food outlets, mini
bars, recreational activities and same-day
newspapers. Onshore revenue generators include
landbased tours and shopping programmes.
Social/cultural
According to Sheridan and Teal,
cruise tourism is continuously
portrayed as bringing prosperity and
development for local communities
but this does not correspond
seamlessly with the local reality
They argue that the cruise tourism product

provides tourists with an impoverished
experience and leaves local communities
disempowered and underpaid. Whereas in the
past, tourists in the Caribbean would spend at
least a few days and nights in an island hotel and
have at least some encounters with island people
and places, now most visitors are cruisers visiting
individual islands for only a few hours at best,
and often not even that as cruise companies
discourage tourists from going ashore.
The social impacts of cruising are not

confined to destination regions where
ships visit. The International
Transport Workers Federation (ITWF)
claims that cruise crews have poor
working conditions with little leisure
time and are accommodated in
unsatisfactor conditions
The ITWF A have few rights a

situation it notes that has not
changed for decades. llege that crew
members are underpaid and
Environmental issues
The International Convention for the
Prevention of Pollution from Ships
1973 and the Protocol of 1978,
commonly referred to as MARPOL,
specify ship waste disposal, record
keeping practices and pollution
control equipment to be carried by all
ships.
How much waste does a cruise ship produce

on average per day?
300,000 gallons of wastewater (10% is sewage)

15 gallons of toxic chemicals (paints, dry cleaning
fluids, photo developing chemicals)
30,000 gallons of sewage
2 pounds of garbage per person
1 pound of food waste per person
2 pounds of glass & tin per person
37,000 gallons of oily bilge water
Thousands of gallons of ballast water containing
pathogens and foreign species
Smokestack emissions the equivalent of thousands of
automobiles
Cruise lines are opting to invest in

on-board waste-disposal technologies
and have adopted environmentally
sensitive practices.
cruise industry is fast approaching

zero discharge, which means that
nothing is discharged into the worlds
oceans at any time
Safety and Security

The two main aspects of cruise
safety are guarding against accidents
(e.g. ship flooding or fire) and direct
threats (e.g. hijacking or terrorism).
Safety issues are generally
addressed by the International
Maritime Organizations Maritime
Safety Committee.

Cruise

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CRUISE SHIP INDUSTRY

It is characterized by the ship being

These floating resorts mimic their

Cruise companies are increasingly

For instance, Carnival Cruises Lines

Davidoff and Davidoff (1994) outlined five specific

during the last 15 years cruise ship

The year 2004 saw the launch of the

Safety issues also require scrutiny,

Worldwide cruise demand.

Favourite parts of the cruise included

Cruise ship categories.

The new cruise ships currently being

Berlitz top ten ships

The main cruising grounds are North

The worlds largest cruise

No. Ship Cruise line Tonnage

Major cruise corporations

Theme cruises have existed since the

Crystal Cruises offer a Wine and Food

Major cruise destinations

The Celebrity Cruises ship Celebrity has

Star Cruises has been promoting its

Recently Celebrity Cruises teamed up

The latest cruise liners have large health

Carnival Cruise Lines has introduced

They argue that the cruise tourism product

The social impacts of cruising are not

The ITWF A have few rights a

How much waste does a cruise ship produce

300,000 gallons of wastewater (10% is sewage)

Cruise lines are opting to invest in

cruise industry is fast approaching

Safety and Security

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