Travel Management
Cruise Ships: Floating Resorts
& Land Travelling
, TRAVEL MANAGEMENT
• THE CRUISE INDUSTRY
– Passenger Ships for many years was the mainstay of
passenger transportation but mass travel by jet aircraft caused
this to end
– To counter act this form of competition, water transportation
industry devised the Cruise ship and ferry liners
• Consists of cruise ships, ferries, yachts and boats
– Attracts diverse customers
• Caribbean attracts ½ of all cruise passengers
– More than 36 thousand passengers expected to travel in by
2014
– 9.5 % US$ increase from 1990 to 2011 US$ 24.39 Bn
– 19.2 million pax travelling by end 2011 world wide increase of
4.1% over 2010
– End of 2011 capacity of cruising will be 428, 835 pax
– 252 ship by end 2011
– By 2014 fourteen more cruise ship rep increase of 36000 pax
– Annual revenue by 2014 increase of US$ 1.6 bn
– World wide growth of 7.67 % annually from 1990 to 2011
(source: CLIA: www.crusing.org)
2
, TRAVEL MANAGEMENT
– Cruise line has become major buyer and
partner in travel industry
– Major cruise trips take place in USA (Florida,
Carribbean, Bahamas, Mexico, South America,
Hawai followed by EU (Mediterranean) and Asia
(Singapore, Hongkong, Japan).
– Trend for cruises tend to be shorter (from 2/3
days to couple weeks)
– Types of cruises vary:
• Pleasure cruising: Resort cruises, Deluxe/Luxury and
Adventure or Exotic cruises
– Large vessels: 2000 - 2620 pax
– Small vessels: 100 pax
– Offer a variety of services and amenities to pamper
guests
3
, TRAVEL MANAGEMENT
– Main reason for cruise choice by pax is destination
sampling- variety of destination in on holiday
package
– Ports of call – carefully chosen by cruise company for
its attractiveness to customers
– Cross-substitutability of demand – compete directly
with resort destinations, offering inclusive packages
– Choice of destinations / Port of call are influenced by:
• Economic – port does not generate sufficient business
• Passenger interest,
• politics – unrests in countries with port of calls
• Government actions – banning of certain activities; e.g.
gambling
4
Cruise Ships: Floating Resorts
& Land Travelling
, TRAVEL MANAGEMENT
• THE CRUISE INDUSTRY
– Passenger Ships for many years was the mainstay of
passenger transportation but mass travel by jet aircraft caused
this to end
– To counter act this form of competition, water transportation
industry devised the Cruise ship and ferry liners
• Consists of cruise ships, ferries, yachts and boats
– Attracts diverse customers
• Caribbean attracts ½ of all cruise passengers
– More than 36 thousand passengers expected to travel in by
2014
– 9.5 % US$ increase from 1990 to 2011 US$ 24.39 Bn
– 19.2 million pax travelling by end 2011 world wide increase of
4.1% over 2010
– End of 2011 capacity of cruising will be 428, 835 pax
– 252 ship by end 2011
– By 2014 fourteen more cruise ship rep increase of 36000 pax
– Annual revenue by 2014 increase of US$ 1.6 bn
– World wide growth of 7.67 % annually from 1990 to 2011
(source: CLIA: www.crusing.org)
2
, TRAVEL MANAGEMENT
– Cruise line has become major buyer and
partner in travel industry
– Major cruise trips take place in USA (Florida,
Carribbean, Bahamas, Mexico, South America,
Hawai followed by EU (Mediterranean) and Asia
(Singapore, Hongkong, Japan).
– Trend for cruises tend to be shorter (from 2/3
days to couple weeks)
– Types of cruises vary:
• Pleasure cruising: Resort cruises, Deluxe/Luxury and
Adventure or Exotic cruises
– Large vessels: 2000 - 2620 pax
– Small vessels: 100 pax
– Offer a variety of services and amenities to pamper
guests
3
, TRAVEL MANAGEMENT
– Main reason for cruise choice by pax is destination
sampling- variety of destination in on holiday
package
– Ports of call – carefully chosen by cruise company for
its attractiveness to customers
– Cross-substitutability of demand – compete directly
with resort destinations, offering inclusive packages
– Choice of destinations / Port of call are influenced by:
• Economic – port does not generate sufficient business
• Passenger interest,
• politics – unrests in countries with port of calls
• Government actions – banning of certain activities; e.g.
gambling
4
