Abstract This paper discusses considerations that need to be taken into account by the cruiseshipindustry. It particularly discusses the Grand Turk Cruise Center. It describes the tourist's role, customer satisfaction and on and off board problems. The paper then discusses potential changes for the future and how these would impact the cruiseshipindustry.
Table of Contents:
The Grand Turk Cruise Center
"She's Here"
"Full Satisfaction"
Grand Turk Cruise Center
Sampling of Sights Grand Turk's Perks
II. Ideas Regarding Relationships and Environment
The Tourist Role
The Small Caribbean Islands
Stay Away
"What's new?"
Pressure to Grow On
Caribbean Tourism: A Blight or a Blessing?
On and Off Board Problems
Fragile Balances
Discharged Pollutants' Safety Status
Societal Choices
Turtles in the Turks and Caicos Islands
III. Choices for Change
Features from the Present; Traces from the Past; Signs of Future
Artificial Versus Authentic
Stiff Solutions
Hidden Costs
Looking Back for Future Inspiration
From the Paper "Mega-ships regularly dump pollutants illegally. Cruise ships environmentally generate horrific amounts of "sewage, oily bilge water, solid waste, grey water ("down the drain" waste) and hazardous wastes," Roberts states. Waste disposal management, as well as disposal of these wastes is only sometimes enforced and most of the time improperly regulated. International environmental practices are minimal in the industry. Federal and local laws which govern waste discharges into coastal waters have not "teeth." (Roberts)"
"Cruise ships generally transport approximately 2000 passengers. The largest ship can accommodate 5000 individuals, simultaneously sailing in international waters under flags of convenience. Frequently, some crews ignore labor and international maritime standards, utilizing opportunities to abuse labor rights, as well as environmental regulations. (Roberts)"
Abstract This work evaluates the cruiseindustry, specifically the Carnival Cruise, Norwegian Cruise and Royal Caribbean companies. The evaluation uses Porter's Five Forces model to explore competition in the industry, the bargaining power of suppliers and the bargaining power of consumers. It also addresses whether the industry has substitute products and if there are new entrants into the industry. This work additionally answers the question of 'how intense is the rivalry' and whether there is a forecasting method that can be used to predict where the industry is going.
Outline:
Introduction
Porter's Five Force Analysis
Porter's Five Force Analysis Summary
Bibliography
Includes charts and graphs
Figure 1 - Forecasted Value Worldwide per Segment, Hotels, Resorts and Cruise Lines (in billion dollars) 2003-2008
Figure 2
Average Growth Rate 1980 - 2004
Figure 3
Passengers Percentage Change 1974 -2004
Figure 5 CruiseShip Order Book as of January 1, 2004
From the Paper "In an April 27, 2006 report entitled: "Cabin Fever - Smooth Times Ahead for the Cruise Industry" John Zamora writes that: "...there's plenty of room for growth in the cruise industry. Currently the number of tourists worldwide who book cruise vacations stands at around 13.4 million, representing about 1.8% of the total world travel market, as estimated by the World Tourism Organization." (2006) Zamora also writes that: "Far from being disappointed at this current level of market share, the industry fully recognizes the opportunities ahead as operators expand into new types of cruises (including the niche budget option); set their targets on different demographic groups; and, head for new waters." (2006) In a November 14, 2005 report entitled: "Which Way is the Travel Industry Headed?" it is stated that a Senior Analyst at eMarketer and author of the Online Travel Worldwide report, Jeffery Grau states: Without question, the Internet has shake up the status quo in the travel industry...Traditional travel agencies are struggling to stay relevant, online travel agencies are trying to instill loyalty among their customers,. travel search engines are the new upstarts, travel suppliers are flexing their muscles and global distributions systems are looking for way to recover their waning influence." (2005) In a report entitled: "Cruise Line Industry: Trends Opportunities for Canadian Exporters 2005" reported is a case study in which the researchers conducted interviews with 21 cruise line purchasers, chandlers, distributors and brokers findings stated in the report include the facts for Worldwide per Segment Forecasts including the cruise lines shown on the chart in Figure 1."
A look at the questionably bleak future for the cruise line industry following the September 11th attacks, in context of the tourism industry as a whole.
Abstract This paper claims that while the immediate future looks not too promising for this industry, the long term looks good. Three main reasons for this statement are given. First, the cruise line industry has been a leader in the steady growth being experienced by the entire travel segment for the last ten years. Second, the industry is seeing expanding markets in Europe and new markets emerging in Asia. The third reason to expect long term growth is that the cruise lines are now offering their customers a wider variety packages at different lengths and price ranges. This has helped them to expand their market into lower income level clients. An overview of the market is provided.
From the Paper "The key strengths of the cruise line industry are its high desirability among consumers. Cruises appeal to the American public's sense of adventure. The second strength is that cruise lines have shown a great ability to adapt their product to meet popular social trends and expand into untapped markets. The recent trend to offer a wider variety of entertainments and the recent popularity of "Theme Cruises" has been a valuable asset. The offering of various priced cruises is also evidence of the industry's ability to adapt and as a result expand their market. The expansion into foreign market is further evidence of this strength. The cruise line industry has demonstrated the ability to not only identify new markets, but to capture them as well. A third strength is that the cruise line industry operates at 100% capacity (Farley, 2000). In order to expand their market cruise lines need only to build more ships. "
Tags: 911, ship, tourist, cruise, industry, holiday, investment, market, entertainment
Abstract The paper looks at several studies of the shippingindustry that use the Greek shippingindustry as a representative of the whole industry. The paper shows how the impetus for major changes today is economic, with a desire to cut costs and improve efficiency at the same time. The paper predicts that this trend will continue so long as charter shipping in all its forms continues to lower costs. The paper discusses the pressure for using third party management and outsourcing and concludes that these strategies may increase in the future as they become vital for a company's competitive advantage. The paper includes tables and diagrams.
Outline:
Introduction
Methodology
Review of Literature
The Greek ShippingIndustry Ship Management
History
Legal Environment
Examples
Information Technology
Summary and Conclusion
From the Paper "The shipping industry has a long history, but the nature of the business changes over that history. It has been changing in recent years because of the pressures for change caused by internationalization, globalization, technological advances, economic shifts in different parts of the world, and so on. Where the tradition has been for companies to sail their own ships, carrying cargo for a fee, more and more companies are finding different ways to accomplish the same business, such as by chartering vessels for the job at hand, or having other companies handle the procedures as a form of third-party management, or some other approach to cut costs, reduce risk, and yet increase business all at the same time. The changes in the global marketplace can mean bringing in more and more local players who can handle some of the difficult tasks involved in working through the bureaucracy, while chartering for shipping can involve more experienced people for certain specific runs."
Abstract This paper reveals that major sea routes constitute among the most important paths for American commercial trade and, simultaneously, reflect one of America's greatest economic vulnerabilities. The paper highlights the threats to America's ocean shippingindustry of high fuel costs, terrorism, piracy and poor port maintenance. The paper points out that the Bush administration actually argued vociferously in favor of the management and ownership of port securities by a United Arab Emirates' state-controlled firm! The paper believes that prevention should be considered a primary priority for the industry, with a focus on personnel recruitment and resource designation.
From the Paper "America is geographically and inherently given over to a high level of economic dependency on its maritime trade. As an enormous landmass surrounded by water and separated from many of its closest trade partners by a bodies of ocean, the United States is a leading entity in the global sea trade. In years prior as a leader in global production, export and retail, today the United States is distinguished for importing massive amounts of natural and consumer resources from its trade partners. Consuming massive amounts of food, lumber, natural minerals and fossil fuels, the American economic depends very much on the consistency of its shipping routes and the continuity of incoming ships from major partners. Particularly with the forces of globalization heavily increasing the emphasis on international trade freedoms, ocean-faring vessels bound for the United States have come to bear an important role and responsibility in the American economy and in the world economy."
Abstract This paper examines how the latest scientific and technological developments have had a massive impact on the trade and industry in the recent year and how international shipping is no exception. It discusses and analyses the development of international shippingindustry and seeks to provide an overview of the liner and bulk shipping in the following three sectors: ship, port and inland transport systems, respectively. It also emphasizes liner shipping (containerships) in the container terminals sector.
From the Paper "As trade changes, so do the ports and there is no such thing as a typical port. Each has a mix of facilities designed to meet the trade of the region it serves.(Stopford,M ,1997). However, it is possible to generalize about the type of port facilities which can be found in different areas. Consequently, today the port can be further divided into four types: small local ports, large local ports, large regional ports and regional distribution centres. The last of these has a wide role as a distribution centre for cargo shipped in very large ships, requiring distribution to smaller local ports. These ports such as Rotterdam, Hong Kong and Shanghai, consist of a federation of specialist terminals, each dedicated to a particular cargo."
Abstract The paper explains that an IPO is a first-time, public sale of shares in a corporation and is designed to raise needed funds from a range of investors. The paper focuses on the Greek shippingindustry that, while extensive, must still compete against rival shippers. The paper discusses how, because Greece does not have the vast financial resources available to other nations, Greek shippers must look to an initial public offering as a vital means to their survival and continued growth. The paper warns that a Greek shipping company that makes an IPO is not raising funds based solely on its established reputation, but rather entering into an international competition with its strengths and weaknesses. The paper emphasizes that a good IPO is the result of a good company.
From the Paper "Though an IPO is but one choice for raising funds, it is highly effective, and has the advantage of being based on presumed corporate assets and projected growth - it is not a direct indebtedness such as a corporate bond. Employment an investment banker, such as J.P. Morgan, is an excellent way of avoiding some of the risks inherent in expansion. The issuance of an initial public offering is tantamount to a company's introducing itself to the public marketplace of investors. Calls for capital on the scale required by the Greek shipping firms involve displaying the company's strengths and weaknesses for all to see - it is an entrepreneurial venture on a global stage."
Abstract This paper outlines a marketing plan for distributing Princess Cruise Lines' new ships and product lines. The plan is designed with the purpose of helping the company maintain its position as a leader in the mass market cruiseindustry and addresses four marketing segments.
Market Segmentation
Product (Tangible)/Service Mix
Pricing Strategy
Communication Strategy
Distribution Strategy
From the Paper "Norwegian, Carnival and Princess are known as the "big three" in the mass-market cruise line industry (CHT Cruises & Tours). Cruises offered by these lines are considered "four star" with high levels of comfort and customer satisfaction as their main selling points (CHT Cruises & Tours). The cruise line industry is divided into three major market segments, Luxury, Premium, and Budget Class (GalaxSea Cruises & Tours of San Diego). Carnival recently acquired Princess and this will allow princess the ability to use Carnival's multi-brand marketing strategy (USVIC). Princess is considered to operate in the Premium class of the three major market divisions."
Abstract The cruiseIndustry is growing rapidly, but if there is one thing that threatens to undermine its progress, it is lack of accountability in this segment of leisure travel industry. This paper first examines the growth of this industry and later highlights the key problems that need to be resolved effectively to protect the industry from possible disintegration and decline in future.
From the Paper "It is believed that no segment of leisure travel industry is growing as fast as the cruise industry. According to an estimate by The Cruise Lines International Association, number of cruise travelers went up to 6.5 million in the last few years of 1990s, which was a 51 percent increase from 1995 (Sloan, 1999). One of the best and most productive years for this industry was 1998-1999 when the number of cruise travelers increased rapidly. During this years, occupancy rate was 91% while the five millions passengers opted for cruise travel instead of regular travel. (Corzo, 1999) In 1999, number of passengers increased dramatically thus paving way for further growth in the coming years. But the while the industry on the whole grew steadily during 2000 and 2001, a decline was noticed in number of American passengers as operators look towards Europe for more business and profits."
Abstract This paper provides a a step by step account of how Carnival Cruise Lines has earned the dominant position they have today in the tourism industry through strategic alliances, marketing and how they have used technology to leverage their competitive advantage. It focuses on their efforts in four areas: being family orientated; being environmentally friendly; convenience and customer service; and their affiliations and strategic initiatives and shows how through these efforts customers stay loyal and come back in the future on one of their other cruises.
From the Paper "Carnival Cruise management have a strong ability to recognize social trends such as the need for short 3-5 day vacations (mini-vacations) and have invested in travel and tourism related companies to help them offer the best vacation in that short time period. For example, Carnival purchased Cunard Line Limted And Airtows PLC to help compliment their cruises with land activities. This is given Carnival the ability to fully control and create packages for three different adventure categories that are truly unique to Carnival such as Dog Sledding in Alaska. Management has also been able to align itself with companies such as Universal Studio?s."
This paper discusses the principles, techniques, benefits and limiting factors associated with relationship marketing (RM) as applied to the tourism industry.
Abstract This paper defines relationship marketing (RM) as a way of doing business transactions with a customer focus to gain a competitive advantage through differentiation in a crowded market place. The author evaluates RM by using PO Cruises, Malaysia Airlines and the role of Frequent Flyer Programs within airlines as examples. The paper concludes that the success of RM within the tourism industry is an effective strategy and should be part of a firm's long-range planning.
From the Paper "RM is an efficient, effective and cheaper way to generate repeat business. Despite the fact that "the cost of gaining a new customer is falling through the use of the internet, global players and large market shares" (Middleton 2002: 167) some organizations within the tourism industry still fail to recognize it's potential. Club 18-30 can be put into this category when their Resort Representative selling techniques are assessed. The welcome meeting on any Club 18-30 holiday takes place in a contained area and Reps somewhat pressure holiday makers into purchasing the "trips" on offer (at a mere ?150 for 2 weeks) by suggesting that they will not have any fun without them. Many young tourists buy into this, which in turn influences others. With a pressurized environment, pushy selling techniques and a sense of consumer obligation, the company makes a substantial profit and the reps a small commission. This experience overall makes the consumer feel like a transaction rather than a valued customer."
Abstract The writer of this paper supplies a detailed explanation of e-commerce and how it works as well as the workings of the maritime industry. This paper examines and discusses the various effects of e-commerce the shipping and shipbuilding industries are currently beginning to become involved in. Maritime freight forwarders have long been involved in the fields of information technologies and use these existing and new technologies to keep up to date with many and varied aspects of their business.
Topics covered in this report include:
Thesis Statement
E-Commerce - The Wild Wild West of the Business World
Ship Owners and the Use of Information Technology
What E-Commerce Offers the Freight Forwarders
Opportunities and Threats
Downside Threats to E-Commerce and Shipping The Future for E-Commerce and Freight Forwarding
Bibliography
From the Paper "From the Federal Maritime Commission's point of view E-commerce presents many other issues that shall need careful consideration by many parties along with the two entities to resolve. Therefore, E-commerce and Freight Forwarders particularly maritime forwarders are to say the least worlds apart if not universes apart. This is not to say however that the works of reconciliation are not underway. Indeed there has been much discussion, revision and other efforts to bring the two entities into some form of unison for several years. Dating back as far as the early 1980s the Federal Maritime Commission is devoting great energy in this area as well as have the emerging E-commerce businesses' associations."
Abstract The paper examines how shipping continues to go through a period of new international regulations. The paper explores how the strategic view is one of forward planning to identify, by time scale, when new regulations are introduced and to make provisions for them in terms of ship management and ship investments. The paper further examines how outsourcing ship management to professional ship management companies, who use their expertise to interpret these regulations in the most effective and rational manner, has become an inevitable and viable option. The paper concludes that, in these circumstances, outsourcing logistics needs to professional 3rd party logistics providers is a viable solution.
From the Paper "Those that own ships often assign a full array of management functions to third parties. Owners who state that they use third parties for their ship management also indicate that they more frequently use these companies for their crewing and technical management and less frequently use them for commercial management. It is also worth mentioning that some ship owners, even those that have never taken on any kind of third party management for their fleets, appear very willing to allow others to control chartering and sale and purchase, while they retain rights toward making any final decisions. Greek ship owners, for example, seem to have a particularly negative attitude when it comes to giving up control over the more technical management of their fleets."
Abstract This paper reviews and discusses Disney Cruise Lines. The paper focuses on the company's marketing strategies and discusses possible improvements. According to the paper, in suggesting improvements to Disney's Cruise Lines marketing strategies, the potential for greater levels of integration with the core branding of Walt Disney Company needs to first be considered.
From the Paper "Fifth the Disney Cruise Lines need to underscore safety and security in their cruising activities and programs. The cruise line had several instances of dozens of passengers getting ill during 2005, and this did have a temporary but significant effect on earnings according to Citigroup (2006). The cruises through the Mediterranean are also potentially risky as the areas the Disney ships, icons of American influence, will need to be protected or at least managed carefully in foreign waters and will need to be very cognizant of local political conditions before setting sail for a foreign port. "
