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Unit 11: Investigating the Cruise Iindustry

P1 P2 P3
by

Andrew Peggs

on 29 April 2015

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Transcript of Unit 11: Investigating the Cruise Iindustry

Unit 11: Investigating the Cruise Iindustry
designed by Péter Puklus for Prezi
Introduction
Learning Outcomes
Make a list of five different companies that offer cruises

Name three popular cruise areas of the world

Name three UK ports that cruise ships use to start and/or finish cruises

Make a list of the reasons why you think cruising has grown in popularity in recent years

Think about the sort of impacts (good and bad) that cruising can have on an island destination in the Caribbean

Name three specific on-board jobs that cruise companies offer

Make a list of the different types of people attracted to cruising and the facilities that each looks for when booking a cruise holiday

Development
Growth
Between 2004 and 2005, worldwide cruise passenger numbers grew by 7.5 per cent to reach 14.4 million

It is forecast that passenger numbers will reach 20 million worldwide by 2015

Cruising is most popular among North Americans – their cruise numbers showed a 9 per cent increase from 8.9 million in 2004 to 9.7 million in 2005

The UK cruise market, including river and ocean cruises, grew to more than 1.2 million in 2006, making Britons the second largest nationality taking cruise holidays.

P2: Stakeholders
1. Know the Cruise Industry
2. Understand the Cruise Market
3. Be able to select cruises that appeal to cruise customers and meet specific needs.
4. Understand the effects of an expanding market.
What do you know?
Know About The Cruise Industry
P1: History, development and growth.
History:
origins, routes, customers, ships, facilities,
Development:
changing customer demands, needs and ages, developing trends, popular and new cruise areas, different types of ships, new and different on-board accommodationand facilities, mergers and takeovers.
Growth:
current position, growth statistics, market statistics.
The Early Days of Cruising.
Long-distance international travel by sea dates back to the mid-19th century, when Cunard Line’s RMS Britannia (RMS stands for Royal Mail Ship) became the first ship to take passengers on regularly-scheduled, trans-Atlantic crossings aboard the vessel Britannia
In the 1880s, the Orient Line and North of Scotland Company, both later to be taken over by P & O, pioneered modern-style cruises and in 1904 P & O offered its first cruise holiday programme, arranged by Thomas Cook

Cruising in the 20th century
The first half of the 20th century was the heyday for large cruise liners, which were built to serve the increasing numbers of passengers travelling between Europe and North America

The Titanic was launched in 1912, but tragically sank on its maiden voyage on the night of 14th April, with the loss of nearly 1,500 lives

The Queen Mary and Queen Elizabeth were launched in 1934 and 1938 respectively

The development of the jet engine and long-haul passenger aircraft, such as the Boeing 707 in 1958, led to a dramatic reduction in the number of passengers using cruise ships from the mid-20th onwards

In the late 20th century the true ocean liners declined and diminished in number, being succeeded by cruise liners such as the Oriana, Aurora, Royal Princess, Royal Princess, Voyager of the Seas, Monarch of the Seas and many others

The cruise boom of the 1980s continued into the 21st century

Today, bigger and brasher cruise ships are being built to service a growing demand from travellers

There is a great deal of variety in terms of ships and the products they offer their passengers, whether it be mass-market, small-ship, luxury, family-orientated, adventure of luxury cruising

The cruise ships of the early 21st century tend to be floating hotels or resorts and destinations in their own right

21st century cruising
History
Investigate

"The Golden Age" of the 1930's and 1950's. Queen Elizabeth and Queen Mary and the "Blue Riband". Cunard's "Titanic". On board facilities.
Investigate:
Harland & Wolff "The Canberra",
On board facilities.
Investigate:
Fly-cruise, straight to the sun, cruise packages.
On board facilities.
The Mediterranean remained the most popular cruise destination with the British in 2014, followed by the Caribbean, the Atlantic Isles and UK/Western Europe

Destinations showing the biggest rise in demand between in recent years with British cruise passengers were Greenland/Iceland/the Arctic Alaska (+ 139 per cent), the Far East/Australia (+ 114 per cent) and West Coast USA/Hawaii/Panama Canal (+ 42 per cent)
Changing popularity of cruise areas
The cruise industry is one of the fastest growing sectors of the travel industry
The cruise sector is offering an increasingly varied proposition to ever growing community of cruisers.
The appeal is being matched year on year by greater choice, options and cruising styles.
With a global destination cruising is expected to continue grow and diversify
Changing Customer Demands
Growth in cruising reflects the increase in disposable income for average British people. With more money to spend, people are able to take more holidays look for different experiences.
Changes in customer demographics
Today’s cruise passengers are:

Younger than in the past

Interested in activities while on board ship and on shore

Looking for short cruises as well as extended journeys

Interested in travelling with families and friends

Looking for adventure

More informal cruising
A success story in recent years has been the introduction of more informal cruises, led by companies like Ocean Village and Island Cruises.

These fashionable cruises are aimed at younger, and particularly first-time, cruisers

Formality is at a minimum, with no formal dress code, no fixed meal times or seating places, lots of activities on board and ashore, plus coffee shops and alternative entertainment

Growth in ex-UK cruises
More people than ever are choosing to start their cruise holiday from a UK port, thereby saving the time and inconvenience of travelling abroad to a departure port

Between 2004 and 2005, the number of passengers starting their cruises from a UK port rose by 28 per cent, from 316,000 to 403,000, while the market for fly/cruise fell by 6 per cent to 669,000 passengers over the same time period

The number of UK ports attracting cruise ships increased again in 2005 to a record 44, thereby spreading the economic benefits of the cruise industry even further. Popular UK cruise ports include Southampton, Belfast, Newcastle and Liverpool

Demand for ultra-luxury cruising
The growth in the popularity of mass-market cruising, aimed at a wide variety of passengers travelling on a budget, has led some wealthy customers to seek out small, exclusive cruises that offer exceptional personal service and attention to detail

To meet this demand, nine of the world’s top cruising operators have joined forces to offer a variety of experiences marketed as the Exclusive Collection
There are many well-established cruise operators across the world, with three companies dominating the sector and accounting for over 80 per cent of all cruise bookings worldwide
Cruise operators
The three major cruise lines – Carnival, Royal Caribbean International (RCI) and Star Cruises – are all integrated companies, i.e. they own other shipping lines that operate under different names

For example, Carnival owns 10 different cruise companies operating under different brand names, including Cunard, Ocean Village and P&O Cruises

RCI owns Celebrity Cruises, while Star Cruises own Norwegian Cruise Line and Orient Lines

Integration in the cruise sector
Ownership Structures
Investigate:
Well established companies, new companies.
Links with other sectors of travel and tourism
Like most sectors of the travel and tourism industry, cruise operators work in partnership with many companies and organisations in the course of their work. These ‘partners’ include:

Travel agents
Hotels and other accommodation
Attractions
Land-based transport operators
Airlines

Regulatory and trade bodies in cruising
Travel and tourism regulatory bodies exist to make sure that organisations serve the travelling public safely, fairly and efficiently. The International Maritime Organisation (IMO) is a specialised agency of the United Nations with 167 member states and its headquarters in London

Trade bodies are set up to represent the interests of companies operating in a particular industry sector. In the UK, the Passenger Shipping Association (PSA) is the principal trade body representing the cruise sector. In the USA, there are a number of trade organisations that claim to represent the interests of the cruise sector, e.g. the International Council of Cruise Lines (ICCL) and the Cruise Line International Association (CLIA
P3: Employment
On-board
On-Shore
Entry Requirements
Working Environment
Terms & Conditions
On-board job opportunities in cruising
Galley (kitchen)
Engineering
Beauty and hairdressing
Hotel (reception)
Housekeeping
Casino
Deck
Entertainment
Medical
Food and beverage
Tours and excursions
Photography
Sports, pool and gym

On-Shore job opportunities in cruising
Marketing
Reservations and sales (including call centre work)
Finance
Administration
Human resources
IT
Check-in and operations
Customer service
Baggage handling
Catering

Qualifications, experience and skills required
Personal skills and qualities, such as good appearance and grooming, a positive attitude, enthusiasm and reliability, are of paramount importance in the cruise industry, which is all about meeting and even exceeding passengers’ expectations. In general, cruise lines look for people who:

Are highly-motivated and enthusiastic
Are keen to take on a challenge
Have a strong desire to work on a cruise ship
Get on well with other people
Are happy to be away from home for long periods
Have a helpful and patient customer service manner
Are well-presented

The working environment in cruising
Working on board a cruise ship can be an exciting and rewarding experience, visiting exotic ports of call, working with people from all parts of the world, earning a good living, and having your room and board provided for free

However, like in other sectors of the travel and tourism industry, life on board ship is also demanding and challenging, working long hours (often 7 days a week), sharing accommodation with work colleagues and following the ship’s rules and regulations

Investigate:
Terms and Conditions, pay, contracts, holidays.
The Carnival Group
New and established cruise Lines
Disney Cruise Line
was created in
1995
Cunard Line
was created in
1840
Costa Cruises
converted all of its ships for passenger use in
1947
P&O
first introduced passenger services in
1844
SS Canberra
was an ocean liner, which later operated on cruises, in the
P&O
fleet from
1961 to 1997
Carnival Cruise Lines
began life as an independent company and was founded in
1972
Full transcript