Transcript Chapter 6 Cruising

Chapter 6 Cruising
 Cruise
Industry Development
 Key Players
 The Market
 Types of Cruises
 Organization of the Ship
 Employment
 Destinations
 Trends
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Chapter 6
Cruising
NCL’s Pride of America
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Cruise Industry Development

Peninsula and Oriental
Steam Navigation Company
is recognized as inventor of
cruising, began in 1837.
 Originated for trade,
immigration, and war
purposes.
 1867: The Quaker City was
the 1st American cruise ship
to set sail.
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Cruise Industry Development

Sea travel became
fashionable in the 1900s
for the elite.
 WWI dramatically
changed the ship travel
industry.
 Air-cruise packages make
cruising an option for
millions of potential new
passengers.
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Cruising Today
 The
cruise business is reported
to be a combined $32.4 billion
industry.
 There has been an increase in
embarkations in the past
decade.
 Only about 10% of the potential
cruise market has been tapped.
 It is estimated that there will be
approximately 11 million
cruisers in the 2011.
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Key Players
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The largest cruise line.
Most financially successful.
Its largest income, other
than the fare itself, is from
beverage service.
Nets about 20% of the
market share.
Includes: Carnival Cruise
Lines, Holland America
Line, Princess Cruises,
Seabourn Cruise Line,
Windstar Cruises, AIDA
Costa Cruises, Cunard
Line, P&O Cruises.
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Key Players
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2nd largest.
Includes 4 brands:
• Royal Caribbean International and
Celebrity Cruises, Pullmantur, and
Azamara Cruises
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Targets ages 35 and older, high
incomes, and welcomes families.
3 million passengers per year.
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Key Players
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3rd largest.
Now operates Norwegian Cruise Line
and Cruise Ferries.
Currently employing a “freestyle
cruising” concept, in which everyone is
allowed to dress as they wish, and eat
when and where they like.
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Figure 6-1: The world’s largest cruise lines
by estimated number of berths and ships.
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The Cruise Market
 Includes
a wide variety of
demographics.
 Typical traveler:
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50+ years old.
Married.
No children in household.
Income of $79K.
 cruise
for less than 7 days.
 Brand loyalty is commonFrequent Guest Programs.
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Types of Cruise Markets

Mass market: Consists of people with incomes in
the $30,000 to $60,000 range. Average cost per
person is $100 to $300 per day.
 Middle market: Consists of people with incomes
in the $60,000 to $80,000 range. Average cost
per person is $250 to $500 per day.
 Luxury market: Consists of people with incomes
higher than $80,000. Average cost per person of
more than $500 per day.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Types of Cruises

Regional: Sail in the Caribbean, the Mediterranean,
the Baltic Sea, and other small seas.
 Coastal: Offered in Northern Europe, the United
States, and Mexico. Significantly smaller than the
average floating resort, they sail closer to land,
seeking out areas not accessible to larger ships.
 River: Often have the feel of a small hotel, with
features like public rooms, a large dining room,
three to four decks, air-conditioning, an observation
lounge, a bar, heated pool, sauna, gym, massage
therapists, and salons.
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Types of Cruises
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Barges: Even smaller than river ships. Cruise
Europe’s inland waterways and canals from April
to November, when the weather permits.
 Steam boating: A concept unique to the United
States. Cruises along river locations and
America’s Heartland.
 Expeditions and natural cruises: Cruises
exotic and exciting places where passengers
play an active part in every aspect of the trip.
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Types of Cruises

Adventure cruises: Explore a number
of lesser traveled areas, including
Alaska, the Amazon River, the Orinoco
River, Antarctica, Greenland, the
Galápagos Islands, the South Pacific,
and the Northwest Passage.
 Sail cruises: Some rely on their sails
at least 80% of the time.
 World cruises: Generally last from 3
to 6 months.
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Types of Cruises
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Crossings: Sailing across the Northern Atlantic
Ocean either to or from the Americas, although it
can take place across any major ocean.
 Specialty and theme cruises: Culture-rich, offthe-beaten-path itineraries built around
passengers’ special interests and hobbies, and
high on enrichment and adventure.
 Deluxe cruising: Larger ships with resort-like
design, numerous activities, and amenities such
as “virtual golf,” pizzerias, and caviar bars.
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Organization of the Cruise Ship
 Captain:
Responsible for
navigation, operations, and
company policies.
 Hotel Manager: In charge
of all hotel operations on
board the ship, which
consist of Administration,
Cruise Staff, Entertainment,
Food and Beverage, Dining
Room, and Housekeeping.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Organization of the Cruise Ship
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Food and Beverage Manager:
in charge of all of the areas that
serve food and beverages
onboard the ship.
 Chief Purser: Responsible for
supervising all other departments
on board, except the deck and
engine.
 Cruise Director: In charge of all
onboard entertainment and
activities.
 Chief Steward (Director of
Housekeeping): The supervisor
of the housekeeping department.
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Employment

Employment opportunities for Americans are
mainly in sales, marketing, and other U.S. shorebased activities, such as reservations and
supplies.
 Onboard, Americans sometimes occupy certain
positions such as cruise director and purser.
 Few Americans work onboard cruise ships
because the ships are at sea for months at a time
with just a few hours in port.
 Most ships also have foreign crews because they
can avoid American labor laws (like overtime).
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Cruise Destinations
 The
Caribbean: One of the
most popular cruise
destinations in the world.
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Western: Mexico’s Yucatán
coast, Belize, or to Grand
Cayman.
Southern: Aruba, Martinique,
or St. Thomas.
Eastern: Bahamas, San
Juan, Virgin Islands, and
Turks and Caicos Islands.
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Cruise Destinations
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The Mediterranean: The
only type of cruise that
puts passengers just a
few hours’ sailing from
another country and/or
continent.
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Western: Southern Europe
that include places such
as Naples, Italy; France;
and Spain.
Eastern: Turkey, Greece,
Crete, and Egypt’s Nile.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Cruise Destinations
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Alaska: Cruising is the most
popular way to visit and is
offered by most of the major
cruise lines.
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Sail along the Inside Passage and
cruise to Glacier Bay National Park
or Hubbard Glacier.
Hawaii: One of the most popular
ways to visit is cruising.
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The most popular type of Hawaiian
cruise sails entirely within the
Hawaiian Islands.
The islands are Hawaii, Kauai,
Lanai, Maui, Molokai, Niihau, and
Oahu.
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Trends
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Rapid expansion in number of ships.
Create new accommodations and entertainment
to distinguish themselves from other brands.
Increase in North American ports.
Increase in number of embarkations,
destinations, and itineraries offered through
North American ports.
Increased number of refurbished ships.
Expansion of passengers within the market.
Continual development of different types of
cruises offered.
Sizeable growth in number of job opportunities.
Walker: Exploring the Hospitality Industry.
© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.