The cruise ship industry effects essay

The global nature of this industry consistently recruits passengers from around the world and as a result, European clientele has seen considerable increases as well.

The cruise ship industry effects essay

The Cruise Industry General Analysis and Overview Over the last decades, the modern cruise industry has responded to extensive market and consumer research with the presentation of innovative naval design concepts, new ship lengths, ever more exotic destinations around the globe, and new on-board and on-shore activities and themes, developed to offer a vacation alternative that satisfies the expectatives of everyone.

The Cruise Industry Development The cruise industry, which modern version dates from the s with the development of the North American industry, has experienced an increasing process of popularization, becoming a major part of the tourism sector, and reaching a level of enormous significance world-wide as an economic factor.

About the Cruise Ship Industry

The modern cruise industry is also one of the most outstanding examples of globalization, with an increasing number of ports of call and destinations around the globe, a multinational clientele and onboard personnel from every continent, and a level of detachment from communities and nations never seen before in history, with important economic, legal, environmental and social implications.

A crisis-resistant industry with a diversified offer of airlift options and modernized port structures that have open up cruising as a vacation alternative available for an increasing, more affluent customer base, offering a exciting, eventful, relaxing and definitely enjoyable experience for millions of passengers from across the world each year.

This dynamic sector is continuously expanding its offer of products and services, and developing new markets, with an average 8. In terms of capacity, the cruise industry has also experienced unprecedented development since the turn of the century.

General Analysis and Overview

The cruise ship industry effects essay fleet compossed of several hundred large cruise ships carrying millions of passengers plies routes in all geographical areas in an expanding range of more than destinations worldwide, with the Caribeean cruises as the favourite ones, followed by Mediterranean cruises and European itineraries that visit diverse popular ports and cities — Barcelona, Venice, Nice, Athens and the Greek Islands, Monte Carlo, Istambul, London, Amsterdam, the Scandinavial Fjords, Helsinki, San Petersburg, etc.

Indeed, the cruise industry has increased in popularity all around the world, serving an heterogeneus clientele with well-differentiated expectations and preferences in the Asian, European and North American markets.

The cruise Industry Consolidation In the other hand, the growth of the cruise industry has been severely conditioned by diverse events, such the The cruise ship industry effects essay Lauro hijack inthe Iraq and Kosovo wars, and especially the aftermath of the September 11 attacks, followed by an accentuated process of restructuration and consolidation in the sector.

Carnival Corporation, headquartered in Miami Florida, USA and London England, UKis the undisputed leader in the sector and the most profitable leisure company in the world, with 12 cruise brands in North America, Europe and Australia that operates 89 cruise ships, around 65, shipboard employees andguests at any given time.

In the other hand, althought the corporate offices of the main cruise companies are located in the United States and Europe, and their clientele comes mostly from these same areas, these organizations, as an integrant part of the shipping industry, are incorporated and have most of their fleet registered in Panama, Liberia, Bemuda and Bahamas to obtain a series of benefits and advantages that allow a better economic balance and competitiveness derived from more favourable standards concerning taxation, labour laws and safety and environmental regulations.

The Cruise Industry Competition The volume of the cruise ship market is relatively small, with important barriers both to entry and exit associated with the extremely high cost of purchasing or selling a single cruise ship, and the high investment needed to maintain and manage a cruise line, which has a decisive influence on diverse aspects and strategies related to organizational and management issues.

In the same way, the bargaining power and capability to take advantage of economies of scale present in the cruise industry are also affected by the size of the market in two different and contradictory ways: Such a reduced number of companies allows them to watch closely for potential commercial threats in a constant competition for a clientele influenced by general economic conditions and with other vacation alternatives, such sightseeing vacations, land-based resort hotels, thematic parks, etc.

A situation that has given place to diverse strategies and plans to identify and specialize in the specific areas within this business framework, resulting in a division of the cruise industry into well-differentiated sectors or market niches — luxury, premium and contemporary — that offer diversified and targeted cruise products and services to satisfy both mass consumer markets, interested in budget packages, and a distinctive clientele seeking the exclusive environment onboard small ultra-luxury ships.

Marketing, innovation and brand image are therefore vital elements in such a competitive commercial environment, and key factors to succeed in a sector in a constant effort to find new sources of income and new strategies to maximize economic performance and profit.

Cruise Industry Revenue The main revenues in the cruise industry are generated for the most part from cruise ship passengers, and the ability to attract and maintain a clientele is therefore essential to its financial success.

However, cruise fares are currently just another element in the complex mosaic of commercial relations around the cruise activity, quite far already from the relatively inexpensive or initial all-inclusive vacation packages offered in the s, with a growing number of strategies for generating onboard revenue.

Nowadays, cruise ships offer an increasing range of shipboard stores and boutiques, spa and personal care services, photography departments and art auctions at prices that compete with land-based establishments.

Most of them provided and managed by concessionaires and subcontractors. In addition, while many people go on a cruise with the intention of doing nothing more than relaxing and unwinding; other customers are interested in participating in all sorts of activities and experiencing the destinations to the fullest, and willing to pay for it.

As a result, there is an increasing offer of shipboard activities and services, such as Bingo and casino gambling, adventure sports, culinary workshops, videogames, computers and virtual reality centres, theme nights, etc. In the same way, cruise passengers are also encouraged to take part in a growing number and variety of auxiliary onshore activities.

In the early s, cruise companies began marketing a diversity of onshore activities and services. Since then, guided excursions and port lecturers, contracted with local concessionaires and local tour operators to be later sold to passengers onboard, have become the largest growing source of income for some cruise companies.

Cruise-based tours of several hours while the ship is docked at a port of call or anchored a few miles offshore, which offer different themes and exciting activities: The cruise ship industry has also shown an ability to establish and maintain effective relations with the land-based tourism industry.

Moreover, the increasing purchasing and bargaining power of cruise companies has a significant impact on the providers of these services, competing and forced to undercut one another to successfully secure a contract with a cruise company, which allows the industry to obtain an additional income from the difference between purchasing and selling prices of such products and services.

On-shore excursions and visits to ports generally provide an extra income to cruise companies. Thus, cruise passengers usually receive a map to illustrate about the most recommended itineraries, including a buying guide that identifies a listing of stores and commercial establishments in the area, approved by the cruise company on the grounds of good prices and guarantee of quality.

Leaving aside onboard revenue, the cruise industry has other alternative means to improve their economic results: In a similar way, there have been many initiatives from cruise companies to help economically in the building or improvement of port facilities and infrastructures in return for a future revenue-sharing formula, which would include, in some cases, priority berthing and a percentage of port charges.

Predictions On a short-time basis, and in spite of the potential growth of the cruise industry and its capability to move ships and switch itineraries so as to adapt to the evolving demand, the rising of fuel prices, the current economic crisis and diverse armed conflicts and political instability that affect diverse parts of the world are taking their toll on this sector.

For the last decades, cruise line companies have been ordering new and innovative ships yearly.

The Cruise Industry: General Analysis and Overview

Nevertheless, the new cruise ships coming within the next years, valued in more than 20 billion dollars to bring additional 85, berths into the market with estimated 4.

In any case, the current economic situation has made the companies in the sector reconsider their business plans, controlling costs and reducing part their staff.

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However, these economic adjustments and changes will not have significant effects on consumers and their access to high quality cruise services.

Thus, the possible lack of new large cruise ships after is already been compensated by many companies in the framework of ambitious refurbishing programs to keep their fleets equipped with innovative onboard offerings to deliver a memorable experience to their passengers; together with the design and construction of boutique-sized ships with a few hundred berths, equipped with a full set of luxurious amenities, competing to offer a more intimate environment.

Moreover, many cruise executives are convinced that the current situation involves a certain beneficial effect on the industry, based on the actual cost difference with other alternative vacations.

Thus, cruise vacations are more affordable than other land-based alternatives, including transport, accommodation, meals and entertainment in the final price, with more and more holidaymakers interested in buying a cruise vacation every year.

Following this trend, the cruise industry is looking for new initiatives to increase its clientele while maintaining the current market share, and each company has its own strategy for coping with new challenges, offering, for instance, multigenerational family travel, more innovation in the entertainment offerings, new onboard activities, more specialization in the offer of services, and aggressive pricing models and discounts to lure potential travellers.

In the same way, progressive concentration in the sector is expected to continue increasing, threatening the survival of regional companies not specialized in a concrete market niche, including also the predictable appearance and development of new large-scale companies competing for the emerging Asian markets; while smaller, newer markets in Europe and the Middle East, Amazon and Brazil, Greenland and the Antarctic regions, also offer prospects for long-term growth.In this paper we describe the evolution of the cruise tourism industry and we analyze different impacts on tourism destinations of this segment of the travel industry.

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EXECUTIVE SUMMARY: Cruise industry is fraught with many challenges like any other industry but since a cruise trip is hard to explain and can only be experienced the challenge of selling cruise vacations becomes even more gigantic.

The cruise ship industry effects essay

May 15,  · Official U.S. government health recommendations for traveling. Provided by the U.S.

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