Cruising Flashcards Chapter 5

Cruising Overview

• Water travel historically driven by immigration, trade, and war. Conditions were often unsanitary and uncomfortable.
• The Peninsula and Oriental Steam Navigation Company (P&O) recognized as the pioneer of cruising, beginning in 1844.

American Cruise Development

• The first American cruise ship, The Quaker City, launched in 1867, sailing from New York to Europe and the Middle East with immigrants aboard.

Evolution of Cruise Travel

• Early 1900s saw wealthy landowners traveling by sea, leading to luxurious ocean liners, including the Titanic.
• World War I influenced cruise industry dynamics, prompting changes in US immigration policies and making cruising fashionable, increasing ship construction.
• Air travel expanded cruising access as many Mediterranean cruise passengers arrived by plane.

Cruise Industry Highlights

• The cruise industry generates approximately $39.6 billion annually, serving nearly 25 million passengers.
• Major cruise line players include Carnival Cruise Lines, Royal Caribbean Cruises, and Norwegian Cruise Line (NCL).

Key Cruise Lines

• Carnival Cruise Lines focuses on 25-54 age demographics, offers round-the-clock activities, and profits from beverage services and casinos.
• Royal Caribbean operates two brands and approximately 48 ships, catering to families and travelers aged 35-plus.
• Norwegian Cruise Line employs a "freestyle cruising" approach, allowing flexible dining and attire, operates 19 ships with both Asian and American fleets.

Passenger Demographics and Preferences

• Average cruise passenger: 46 years old, married, with a household income of $90,000.
• Shorter cruises (seven days or fewer) account for most market demand; younger passengers prefer shorter trips, while middle-aged travelers opt for two to three-week cruises.
• Round-the-world cruises primarily attract elderly passengers who have time and financial resources for lengthy trips.

Types of Cruises

• Seven cruise types including regional cruises, coastal cruises, river cruises, barges, steam boating, expedition cruises, adventure cruises, sail-cruises, world cruises, crossings, and specialty/theme cruises.
• River cruises offer an intimate setting with high-quality meals despite limited size.
• World cruises last three to six months and provide luxurious experiences, costing upwards of $19,999 to $452,000 per person.

Cruise Staff and Operations

• Captain oversees all ship operations, requiring extensive experience and certifications.
• Cruise director manages onboard entertainment and schedules, requiring strong organizational skills and public speaking ability.
• Chief steward coordinates housekeeping services, while a food and beverage manager ensures quality in dining.

Health and Safety

• High potential for virus transmission due to close quarters and frequent stops in various countries; vaccination is crucial for all passengers.
• Medical staff onboard typically includes two doctors and three nurses to address health needs.

Passenger Loyalty and Market Segmentation

• Approximately half of cruise passengers are repeat guests, showcasing strong brand loyalty.
• The cruise industry categorizes markets into mass, middle, and luxury segments based on income and cruising experience preferences.

Financial Insights

• Mass market: $30,000-$60,000 income range, with costs averaging between $60 to $250 per day.
• Middle market: $60,000-$80,000 income range with higher average costs of $250 to $500 per day.
• Luxury market targets those earning above $150,000 with expenses exceeding $500 per day.

Dining Experience

• Continuous food availability noted as a primary reason for choosing cruises.