HTM 230

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HTM 230

• Cruise Industry

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Video 55 (20 min.)
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History

• 1818 - First regularly scheduled transatlantic
  passenger service.
• 6 weeks
• Immigration was largest passenger segment.
• 1840 - Clipper Ships
• 3 weeks
• The Brooklyn - NYC to San Fran (1847)
• 3 months

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Cutty Sark
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Steam Ship

• 1807 - Robert Fulton
• 1840 - First scheduled steamship crossing
• 2 weeks
• 1867 - First scheduled steamship service to
  Pacific
• 1869 - Suez canal
• 1914 - Panama canal

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Classes of Service

• Steerage - 500 people
• common sleeping
• common lavatory
• no bathing facilities
• bring own food
• Cabin class - 50 people
• luxurious
• expensive
• segregated

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Golden Age 1885 - 1950

• Superliners
• Mauretania, Lusitania, Titanic
• 20 knots
• 1 week
• 3 classes
• first class - 10
• tourist class - 70
• steerage - 20

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Titanic
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1930s

• Great Depression
• Normandie
• Queen Mary
• Queen Elizabeth
• 30 knots (4 days)

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Decline

• 1950s
• Air Travel
• faster
• cheaper
• safe
• Getting there vs Being there

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Today

• Only QE2 makes transatlantic crossing
• 24 times / year (4 days each)
• Cruises Mediterranean
• Novelty travel

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Cruising

• Born out of desperation
• Liners converted to cruise in 1970s
• The Love Boat
• Bob Dickinson and Carnival
• Fastest growing segment of leisure travel industry

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Cruisers vs Liners

• Speed is of secondary importance
• Emphasis on passenger amenities
• swimming pools
• skeet shooting
• gambling
• shows
• eat, eat, eat

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Cruisers vs Liners

• Fuel efficiency
• Low operating cost
• open decks vs closed decks
• Conquer sea sickness

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Sea Sickness

• Motion sickness
• 50 of passengers get it
• Stabilizers
• SWATH Technology

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S.W.A.T.H. Technology
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SWATH

• Small Water plane Area Twin Hull
• No roll or pitch even in rough seas
• Large rectangular base for superstructure
• larger percentage of revenue producing area
• High speed
• Not as fuel efficient.

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Radisson Diamond
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Class of Service

• Only 1 Class (all the same)
• Prices vary by cabin
• Outside
• Upper
• Bigger

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Why are cruises so Popular?

• All-inclusive price
• eliminates the unknown
• Several destinations without hassle
• Demographics
• seniors
• more money
• more leisure

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Why are cruises so Popular?

• All-inclusive price
• eliminates the unknown
• Several destinations without hassle
• Demographics
• seniors
• more money
• more leisure

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Flagging

• Official Home Port
• Liberia
• Panama

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What Cruise Lines Get

• Lower taxes (much lower)
• Less regulation (much less)
• Cheaper, more plentiful labor
• No minimum wage

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What Countries Get

• Tax Revenues
• Jobs for citizens

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Cruise Jobs

• On-Board
• almost no Americans

• Port
• Reservations
• Sales
• Operations

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Staffing

• Ships Crew
• Captain
• Mates
• Engineers
• Seamen

• Hotel Crew (21 ratio)
• Manager / Purser
• Cruise Director
• Stewards
• Chef
• Cooks
• Waiters

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Pricing

• Per person / double occupancy
• All-Inclusive
• Fly / Cruise Packages

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Major Cruise Destinations

• Caribbean
• Mexican Riviera
• Mediterranean
• Alaska
• Hawaii

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Major Cruise Destinations

• South Pacific
• Trans Canal
• Shore Cruise
• Riverboat Cruise

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Other Trends

• Freighters
• Charters
• Bare Bones
• With Crew, etc.

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Distribution

• 90 Booked through agents
• Everything Commissionable
• CLIA
• Travel Agency Relations
• 800 number
• Cruisematch
• OHRG
• CLIA manual