INTRODUCTION TO TOURISM
AND HOSPITALITY
MANAGEMENT
Lecturer: Shauna Cameron Thompson
Mona School of Business and Management
UWI
The Cruise Line Industry
Unit 9
2
According to Holloway 2007 the following
History sequence holds true:
of Sea First means of transport were walking and
and Land swimming.
Travel Animal domestication introduced new way to haul
heavy loads
Animal transport became more efficient because
of Inventions such as the wheel and sled
Introduction of vehicles made the travel even
more efficient
History of Sea and Land Travel
Prior to the Industrial Revolution water transport -
including rowed and sailed vessels was the only efficient way
to transport large quantities
The Industrial Revolution of the 19th century saw a number
of inventions which fundamentally change transport
The invention of the steam engine
• followed by its application in rail transport, made land transport independent
of human or animal muscles.
• specialization improved – due to speed and capacity increase
• Steam ship developed this sped up global transport.
History of Sea and Land Travel
Holloway Post World War II, the automobile and airlines
argues commanded greater shares of transport, reducing
that: rail and water to freight and short-haul
passenger.
1950 ships failed to meet the demand of post war
market – had insufficient cabins and private
rooms to meet the American Market.
Shipping companies were limited by
bureaucracies which restricted creative
marketing.
11
Cruising The Early Years
In terms of documentation for the first cruise taken William
Makepeace Thackeray was the first person known. It is said he
cruised
He travelled from Cornhill to Greece, to the Holy Land, and
finally to Egypt
The Titanic went on its maiden voyage from England to America
On April 15, 1912. However it encountered an iceberg and
sank. This revolutionized safety measures for transatlantic
cruises.
12
Cruising The Early Years
The early 1960s saw the first modern
cruise lines
the Bilu and Nili were two ships
chartered and used exclusively by Miami
entrepreneur, Leslie Fraser for cruises.
Cruise Travel
According to Holloway 2007 the 1950’s – passenger shipping
industry moved emphasis from line voyages to cruising
This was problematic initially as vessels were too old, too
large and too expensive for cruising
They were built for speed instead of cruising and size limited
port calls
1960 and 70’s saw ships of 18-22 thousand tons carrying 650-
850 passengers
Marine Technology improved this. How ?
16
Holloway 2007 argues that:
Cruise Major cruise routes in the world
include:
Travel
Caribbean , Bermuda, Bahamas central
and South America – Year round
West coast of North America including
Mexico, USA and Canada
Mediterranean
17
Major cruise routes in the world
include:
Cruise Pacific Islands
Travel
Baltic Sea – high summer
West Africa
Routes are seasonal. Fly cruise
has increased cruise market
A sample of 2015 world cruises
Ferry Services
Holloway 2007 purports that the Ferry
Service embraces a variety of short
distance water borne transport.
• They may attract tourist .
• Provides essential service to remote
areas for example Greek Islands or
between Italy and Sicily
• 1980’s- Rise in Ferry service can be
due to increase in Tourism and trade
in the region
• Expensive in capital investments and
direct operating costs
20
• Holloway 2007 argues
that Water is attractive
for many tourists both
independently and
commoditized and
packaged for tourist
• Inland waterways that is
lakes, canals and rivers
provides opportunities
for leisure, recreation
and tourism
• Major waterways are
great attractions for
example: The Nile River
in Egypt, the
Mississippi in the USA
offers nostalgic trips
Coastal Tourism
21
The Cruise Market
The Cruise Lines International
Association (CLIA) created four
market segments for cruise lines.
• The contemporary/value segment.
• The premium segment
• The luxury segment
• The specialty segment
22
Walker 2017 There are more
argues the that 200 cruise
following about lines offering
The Cruise cruises: vacations.
Market
Travelers associate Cruise ships are
romance with like a floating
cruising resort
About 9 million
Americans Cruise
each year
23
Inside The
Biggest
Cruise Ship
In The World
Some ships provide lake and river
cruises most are on the ocean
The Cruise Day life on the cruise includes – hair
salon, spa, games
Market and non stop entertainment
Carnival Cruise line is the most
successful netting 20% of the sales.
Then there is Royal Caribbean
International and P&O line in the
United Kingdom
Walker 2017 argues that the segments of the
Cruise markets are different. They are as follows:
Mass Markets – income ranges 35-74,000 US
The Cruise
Market
Middle Market – incomes ranges 75-
99,000. These ships accommodate 750-1000
passengers . Stylish and comfortable. Cruise lines
include Princess, Norwesian, Windstar etc. 26
Luxury Market – incomes higher than
100,000. Carries about 700 passengers and
The Cruise has superior appointments and
Market service. Examples Seabourn
Spirit, Seabourn Legend, Crystal Cruises
etc.
Members of the Cruise
organizational chart
The Captain. – Head of ship
Modern The following officers report
Cruise directly to the captain:
• The chief officer is second in
Business command.
• The Chief Engineer - supervises
ship’s physical plant.
• The Hotel Manager - heads the hotel
division.
• The Purser -
• The Food and Beverage Manager
28
Holloway argues that;
Capital and Labor Intensive
Economics
of Cruise Modern cruise liner costs 200
million some costs 400
million
Life expectancy of cruise liner
is long allows reconditioning
etc.
4-5 star liner carries one
staff to two passengers
Economics
of Cruise Large liners like Carnival
cruise can recoup
operating cost – smaller
cabins and large public
areas – allows shopping
space and big dining rooms
Economics of Cruise
Rapid rise in oil prices will affect
cruising negatively
Total cruise market is totaling 5 million
annually 80% are American (Holloway
1997). British passengers are second
Poised to grow
32
In 2021, the
cruise market
recovered to
levels last
seen in 2006
(Cruise Market
Watch)
In 2019, the global cruise industry welcomed
29.7 million passengers, created jobs for 1.8 In 2021, the cruise industry bounced back
million people around the world and further, welcoming almost 13.9 million
contributed over $154 billion to the global passengers worldwide. However, this is still only
economy. 46% of the passengers that cruised in 2019.
Mar. 2020
2019 2021
Cruising was suspended worldwide in mid-
March 2020. July 2020 saw a resumption of
sailing in parts of Europe, Asia and the South
Pacific with around 200 cruises departing in the
second half of the year.
• Royal Caribbean carried more
2. Royal passengers than any other cruise
Caribbean line in 2021. The line had 20 of its
fleet of 24 ships back in service by
carried the most December 2021. Following closely
passengers of all behind was Carnival, with 17 ships
cruise lines in back in service out of a fleet of 23.
2021 • Ships that are not yet in service in
2022 tend to be the oldest and
(Cruise Market smallest ships in each fleet as ships
Watch) sail at a reduced capacity to allow
space for social distancing on board.
Cruise Line Passengers in 2021
Royal Caribbean 2,657,900
Carnival 2,528,100
MSC Cruises 1,414,700
Norwegian 1,200,300
Costa Cruises 862,400
Princess 816,300
AIDA 749,300
Group Work
Discuss in Present Prepare
Discuss in details how you Present a plan on how you Prepare a daily activity list
would organize and would market the business for guest entertainment
manage a cruise given the Covid 19
business. Pandemic and the impact
on the industry
