Cruise Ship Tourism

Ross Dowling, Clare Weeden, Ross Dowling, Clare Weeden

• Publisher: CAB International
• Year: 2017
• ISBN:
  9781786391179
• Edition: 2
• Topic: Negocios y empresa
• Subtopic: Hostelería, viajes y turismo

Completely updated and revised, Cruise Ship Tourism, 2nd Edition covers the economic, social and environmental impacts of cruising, combining the latest knowledge and research to provide a comprehensive account of the subject. Despite the industry growing rapidly, there is a substantial gap in the related literature, and this book addresses the key issues for researchers, students and industry professionals.This second edition: - Reviews the fundamental principles of the industry, the cruise experience from a passenger perspective, marketing, planning and destination development. - Includes case studies throughout, translating theory into practical management advice.- Comprises contributions from over fifty international contributors to portray a truly global perspective.- Provides numerous full colour illustrations to bring the subject to life.A valuable 'one-stop-shop' for those interested in cruise ships and maritime tourism, this new edition from major names in the field is also an invaluable resource for anyone concerned more widely with tourism and business development.

1 The World of Cruising

Ross Dowling^1* and Clare Weeden²

¹Edith Cowan University, School of Business and Law, Centre for Innovative Practice, Joondalup, Western Australia, Australia; ²University of Brighton, Centre of Sport, Tourism and Leisure Studies (CoSTALS), School of Sport and Service Management, Eastbourne, UK

^*E-mail: [email protected]

Introduction

The cruise industry has evolved markedly since the early days of the first passenger ships. This evolution has involved excursion voyages, transatlantic travel, the post-war boom, the demise of passenger ships and the advent of modern cruising (Dickinson and Vladimir, 1997). The industry is again growing rapidly and remains one of the major areas of tourism growth since the start of the new millennium. Between 2008 and 2014 cruise travel outpaced general leisure travel in the USA by 22%, and global cruising is evolving at a record pace increasing from 18 million passengers in 2009 to a projected 24 million in 2016, a 33% growth over the 9-year period (CLIA, 2016; Table 1.1). The economic impact of cruising in 2014 was 939,232 jobs, US$39.3 billion in wages and salaries. The average daily passenger spending was US$134.72 with a total economic impact of US$120 billion (CLIA, 2016). The industry continues to focus on consolidation, with more than 80% of the global market share held by three cruise companies – Royal Caribbean Cruise Lines (RCCL), Carnival Cruise Lines (CCL) and Norwegian Cruise Lines (NCL) (Pinnock, 2014; Clancy, see Chapter 2, this volume).

Table 1.1. Worldwide cruise demand 1995–2020. (From: CLIA (2016), Ward (2016) and authors’ estimate for 2020.)

Year	Number (rounded millions)
1995	6
2000	10
2005	16
2010	19
2015	24
2020	30

The two most popular cruise destination regions are the Caribbean (33.7%) and the Mediterranean (18.7%). Rapidly growing destinations include Asia (9.2%), and Australasia and the Pacific (6.1%). These latter regions are experiencing spectacular increases in demand, and the world’s leading cruise lines have established regional headquarters in both Asia and Australia. Although markedly different, China and Cuba have been identified as the markets with the greatest growth potential (AEC, 2015).

A regional example of the increasing appeal of cruising is its phenomenal increase in Australia. In the past decade the number of people cruising there has risen six-fold from 158,415 (2004) to 1,003,256 (2014) (CLIA, 2015a). These figures confirm Australia’s position as the world’s fastest growing source of cruise passengers, with numbers surging 20.4% from 2013 to 2014. The achievement of 1 million passengers in a calendar year comes 6 years before originally anticipated, and has been driven by an impressive 20% annual average growth for the past 12 years. Australia has also retained its position as the world leader for market penetration, with the equivalent of 4.2% of Australians taking a cruise in 2014, significantly ahead of the well-established North American market, which ranked second with a market penetration rate of 3.4% (CLIA, 2015a).

It is not just ocean cruising that is increasing in popularity. River cruising is also growing rapidly around the world, and today around 1 million people cruise on river ships (Ward, 2014). Key destinations include the Danube, Rhine, Elbe, Rhone, Seine, Po and Douro (Europe), Mississippi (USA), Yangtze (China), Lower Ganges (India), Mekong (Vietnam and Cambodia), Irrawaddy (Myanmar), Murray (Australia), Chobe (Botswana and Namibia), Nile (Egypt) and the Amazon (South America).

Cruise Supply

A cruise is defined as ‘to make a trip by sea in a liner for pleasure, usually calling at a number of ports’ (Collins English Dictionary, n.d.). Traditionally, cruise ships have been evaluated according to size, number of passengers and state rooms (Mancini, 2011). Ships range from very small or micro (under 10,000 t and 200 passengers), to megaships (over 70,000 t and carrying more than 2000 passengers). The largest cruise ships in the world are Royal Caribbean International’s three ‘Oasis-class’ ships. Harmony of the Seas (227,000 gross registered tonnes (GRT)) was launched in 2016 (see Introduction to Part 1), Allure of the Seas (225,282 GRT, 2010) (Fig. 1.1) and Oasis of the Seas (225,282 GRT, 2009) (Table 1.2).

Fig. 1.1. Royal Caribbean International’s Oasis Class ship Allure of the Seas. At 225,062 t it is the second largest ship in the world. The ship is in the port of Labahee, Haiti, a private resort leased to Royal Caribbean Cruises Ltd until 2050. (From: Lois Godfrey.)

Table 1.2. The world’s largest cruise ships. (From: Ward, 2016, and authors’ research.)

A different classification categorizes ships from boutique to large resort ships (Ward, 2016) (Table 1.3).

Table 1.3. Cruise ship categories. (From: Ward, 2016.)

The most widely used rating is that of Berlitz, which categorizes ships according to facilities, accommodation, cuisine, service, entertainment and the overall cruise experience (Ward, 2016). Their 2016 publication rated Hapag-Lloyd Cruises Europa 2 as the best cruise ship in the world (Fig. 1.2; Table 1.4).

Fig. 1.2. Hapag-Lloyd Cruises’ Europa 2 (42,830 grt). The Berlitz Guide to Cruising and Cruise Ships 2016 rates this ship as the best in the world, just ahead of its sister ship Europa. (From: Hapag-Lloyd Cruises.)

Table 1.4. Berlitz top cruise ships, 2016. (From: Ward, 2016.)

Cruise ships are getting larger. In the 1970s it was considered that a 25,000-t, 800-passenger vessel was the most cost effective and therefore profitable (Peisley, 1989). Cruise ship builders now believe the economies of scale argument applies to much larger vessels, with many new ships weighing more than 150,000 t and capable of accommodating over 3000 passengers. These ships offer a greater choice of facilities and activities and are designed for a new generation of passenger who has broader, more varied interests. Known as mega-liners, these vessels are recognized as giant floating resorts, and compete directly with luxury shore-based hotels (Dowling and Vasudavan, 2000). They have large multi-level hotel-style atrium-lobbies, glass elevators, impressive art works, glitzy casinos, show-lounges, shopping centres, health centres, computer and business centres, discos and observation lounges. Cruising is no longer a sedentary experience, and as shore-side lifestyles become more active, new ships offer a range of options, which cover sports, recreation, entertainment and culture. Cruise companies are also investing heavily in the ‘biggest’, ‘grandest’ and ‘first’, such as the first wedding chapel, most impressive ice rink, best in-line skating track or biggest rock climbing wall.

Trends and innovation in cruise ship design

As already noted, the trend for larger ocean cruise vessels is growing. For instance, Royal Caribbean International’s (RCI) latest vessel, Oasis-class Harmony of the Seas is the largest cruise ship ever built (see Introduction to Part 1). It weighs 227,000 t, and has capacity for 5496 passengers and 2300 crew.

Although not every company offers ocean cruises on mega-liners, cruise companies are focusing on refitting and upgrading their fleets to take advantage of an upsurge in demand. For example, Swiss-registered MSC Cruises, the fourth largest cruise company in the world, will take delivery in 2017 of the first of three ‘Vista’ generation vessels. These ships each offer 2444 cabins and a combined passenger/crew capacity of 8000 people, with two additional ships launched in 2019 and 2020. Similarly, Crystal Cruises is currently undertaking a global expansion, with three new ocean ships (their first ship builds in 12 years), a river cruise operation, a yachting venture, air cruising and residences at sea. The company’s new 1000-passenger luxury expedition-style ships, branded Crystal Cruise Exclusive, will sail the Seychelles Islands, the Middle East and the Adriatic Coast. Passengers will have access to expedition-style activities with a two-person submarine, zodiacs for shore excursions, a small yacht for boating tours, water skis, kayaks, and fishing and scuba gear.

The company is also financing a new hybrid concept, where 48 ‘Crystal Residences’ are available for private purchase on these ships (The Australian, 2016). This novel development shares similarities with The World, a ship that has been offering apartment living for wealthy people since 2002. Accommodation on The World comprises 165 apartments for passengers to live onboard and, if they wish, retire at sea. The estimated price of these apartments is approximately US$1 million, with another US$120,000 a year in service charges. It is likely further opportunities to live at sea will be available in future.

In another initiative, Crystal Cruises is also setting out to restore and reinstate the historic SS United States as a modern luxury passenger liner, through a cooperative initiative with the SS United States Conservancy (Miller, 2016). Launched in 1952 and retired in 1969, the famed vessel was once nicknamed ‘America’s Flagship’, and is best known for capturing the transatlantic speed record. It still remains the largest passenger ship ever built in America, having carried a million passengers in its time. The 800-guest-capacity ship will restore its original décor and feature 400 suites with luxury dining, spa and entertainment amenities.

It is not only size that is significant – technological innovations onboard are also critical to stay competitive. For instance, two of RCI’s Harmony of the Seas predecessors, the Quantum-class ships Anthem of the Seas and Quantum of the Seas, feature an array of technological innovations, including an aerial gondola, dodgems, skydiving simulator, internal cabins with ‘virtual balconies’ and SeaPlex, the biggest indoor area at sea. A third Quantum-class ship, Ovation of the Seas, was launched in 2016 and two further ships in this class are on order for 2019 and 2020. A different, yet no less significant innovation comes from Virgin Cruises, which has announced its entry into the market with a futuristic hull design that represents a significant move away from conventional design. The cruise itself has been described by Virgin’s Richard Branson as aiming for ‘an intimate, boutique-style experience for cruisers and non-cruisers alike’ (Davis, 2015). The first of three mid-size 110,000-t, 2800-passenger ships will be launched in 2020, with two further ships delivered in 2021 and 2022, at a combined cost of US$2 billion.

Further novelties, in the form of creative product and price packages, include opportunities to overnight mid-cruise (Azamara Cruises), or take short trips (2–3 days) away from the ship during the cruise (Seabourn). Service innovations include Internet service at no extra cost (see Viking Ocean, Regent Seven Seas and RCI), as well as partnerships with non-cruise brands. Examples of the latter are Princess Cruises’ cooperation with the Discovery Channel, and Holland America’s joint offering with BBC Earth, both of which will offer a greater choice of enrichment programmes onboard, as well as themed excursions ashore. Intensive competition among cruise brands has forced companies to move on from providing a passive experience in a celebrity-themed restaurant or demonstration, to offering novel enrichment programmes, such as P&O Cruises’ ‘Food Heroes’ concept onboard Britannia, where guests can take cookery classes with their favourite celebrity chef.

Beyond the appeal of standard themed cruises, passengers can also now participate in ‘voluncruising’, which although marketed to appeal to the potentially ‘responsible’ cruiser, is also critical to a cruise line’s corporat...

Table of contents

• Cover
• Half Title
• Title
• Copyright
• Contents
• About the Editors
• Contributors
• Preface
• Acknowledgements
• 1 The World of Cruising
• Part 1:Fundamental Principles
• Part 2: The Cruise Experience: People and Passengers
• Part 3: Markets, Marketing and Motivations
• Part 4: Impact s of Cruise Ship Tourism: Stakeholders, Politics and Power
• Part 5: Planning and Management for Sustainable Cruising
• Part 6: Ports, Destinations and Infrastructure Development
• Part 7: Conclusions and Future Directions
• Index
• Back Cover