Cruise Sales Management and Operation PDF

Polytechnic University of the Philippines College of Tourism, Hospitality and Transportation Management Department of Tourism and Transportation Management Bachelor of Science in Tourism Management INSTRUCTIONAL MATERIAL TOUR 4073...

Polytechnic University of the Philippines College of Tourism, Hospitality and Transportation Management Department of Tourism and Transportation Management Bachelor of Science in Tourism Management INSTRUCTIONAL MATERIAL TOUR 4073 Cruise Sales Management and Operation Compiled by: MA. GAY M. TEOPENGCO and LIZBETTE R. VERGARA Faculty Members Week 1: Introduction of the course content, university mission and vision, college goals, department objectives, activities, plans and programs. Read: P.U.P. Student Handbook ( www.pup.edu.ph ) ( [email protected] ) Week 2: Introduction to Cruise Industry Topics to be discussed: At the end of the discussion, the learners are Overview of the cruise industry expected to: Industry trends Explain the nature of cruise industry Background/ history of cruising and its operation. Language of cruising/ Industry Acquaint the students with the terminology common nautical/maritime terms used to describe and operate a ship. Discuss the evolution of cruising industry. Overview of the Cruise Industry The cruise industry is one of the most outstanding examples of globalization, with an increasing number of ports of call and destinations around the globe, a multinational clientele and onboard personnel from every continent, and a level of detachment from communities and nations never seen before in history, with important economic, legal, environmental and social implications. This phenomenal growth has created the need for more efficient managerial, organizational and planning structures to meet the increasing competition and deal with the many changing factors in an evolving market that generates hundreds of thousands of direct and indirect jobs around the world, yielding an indirect multi-billion dollar annual benefit in diverse industrial sectors in all the world including nondurable and durable goods manufacturing, professional and technical services, travel services, financial services, airline and transportation, and wholesale trade. Throughout its history, the cruise industry has responded to vacation desires of its guests and embraced innovation to develop new destinations, new ship designs, new and diverse onboard amenities, facilities and services, plus wide-ranging shore side activities. Cruise lines have also offered their guests new cruise themes and voyage lengths. This dynamic sector is continuously expanding its offer of products and services and developing new markets. Today’s ships offer a world of innovations that build cruise lines’ brands. In terms of its capacity, the cruise industry has experienced unprecedented development since the turn of the century. A multimillion investment into new, more innovative and ever-bigger vessels capable of carrying up more than 3,000 passengers, with routes in all geographical areas in an expanding range of more than 500 destinations worldwide offering lower fares and shorter cruises to benefit from economy of scale and onboard activities such as multi-story shopping centers, restaurants, cafés and pubs, nightclubs, discos, casinos, art galleries and museums, theatres and cinemas, libraries, personal care areas and spas, gyms, swimming pools, tennis courts, ice skating rings, and a lot more amenities to meet the changing vacation patterns of today’s market and exceed the expectations of its customers with practically a cruise option for everyone. Indeed, the cruise industry has increased in popularity all around the world, serving a heterogeneous clientele with well-differentiated expectations and preferences in the Asian, European, and North American markets. According to the report “2020 State of the Cruise Industry Outlook” by world's largest cruise industry trade association Cruise Lines International Association (CLIA) the following are the trends to look forward in the cruise industry: ENVIRONMENTAL SUSTAINABILITY The development and identification of new technologies and cleaner fuels is a top priority for the cruise industry, which continues to make substantial investments in reducing its environmental impact. o Innovation While cruise ships comprise less than 1% of the global maritime community, the entire shipping industry benefits from the early adoption of new technologies and practices that did not exist just five to ten years ago. ✓ Liquified Natural Gas (LNG) - Virtually zero sulfur emissions, a 95% to 100% reduction in particulate emissions, and 85% reduction in nitrogen oxide emissions and up to a 20% reduction in greenhouse gas emissions ✓ Exhaust Gas Cleaning Systems (ECGS) - 98% reduction in sulfur oxide levels, 50% reduction of total particulate matter and 12% reduction of nitrogen oxides ✓ Advanced Wastewater Treatment Systems - Advanced waste treatment systems that exceed international requirements and are often superior to shoreside treatment plants ✓ Shore-side Power - Cruise ships are increasingly equipped with the ability to turn off the engines and receive shore-side electricity while in port where clean energy is available DESTINATION STEWARDSHIP With increased demand and growth in the cruise industry comes responsibility to foster respect and cooperation with the places we visit. In collaboration with local communities, the cruise industry is exploring new and creative ways to manage the flow of visitors and implement the highest standards of responsible tourism. o Partnerships with local governments o Staggered arrivals and departures o Excursion diversification o Shoreside power o Local passenger spending CRUISE AND STAY 65% of cruise passengers spend a few extra days at embarkation or debarkation ports. THE PLASTIC-FREE PASSENGER More than eight of ten cruise passengers recycle (82%) and reduce using single-use plastics (80%) while traveling. Seven out of ten cruisers forego plastic straws. GENERATION CRUISE POSITIVE More than 66% of Generation X and 71% of Millennials have a more positive attitude about cruising compared to two years ago.  LONE CRUISERS Cruise lines are responding to a shift in passenger demographics by offering studio cabins, single- friendly activities, eliminating single supplements and solo lounges. MICRO TRAVEL Many cruise lines offer bite-sized cruises over a three-to-five-day period offering incredible itineraries and travel to exciting destinations. Timeline of the Evolution of Cruise Ship: Year Event 1801 The tug Charlotte Dundas goes into service and becomes the first practical steam-driven vessel. 1815 Before it was P&O Cruises (which is still running today), it was Wilcox and Anderson – a ship brokering firm originally founded by Brodie McGhie Wilcox and Arthur Anderson for trading between England and the Iberian Peninsula countries of Spain and Portugal. 1818 Black Ball Line introduces the Savannah, 424 GRT carrying eight customers, which becomes the first ship to cross the Atlantic from New York to Liverpool. The journey takes 28 days. 1822 Wilcox and Anderson eventually became The Peninsular and Oriental Steam Navigation Company (P&O). 1833 Some sources recognize the Francesco I, flying under that flag of the Kingdom of the Two Sicilies (a predecessor of Italy), as one of the first cruise ship sailings. Nobles, authorities, and royals boarded the Francesco I, and cruised to 11 countries within three months. Since the sailing was limited to European aristocrats, it was not considered to be a commercial cruise. 1835 First advertised cruise around the Shetland and Orkney islands. This cruise never actually took place, however, and it wasn’t until 1886 that the North of Scotland and Orkney and Shetland Shipping Company operated short-break cruises. 1837 Peninsular Steam Navigation company founded (later to become the Peninsular and Oriental Steam and Navigation Company, and now the more familiar name of P&O). 1840 Samuel Cunard establishes the first transatlantic steamship. Wilcox and Anderson (P&O) were awarded new mail contracts to extend their services to the Egyptian Port of Alexandra. Their new contract required that the voyage from England to Alexandria should be accomplished within 15 days. This is when the two men realized that they could do much more with their trade than merely travel, export, and mail. 1843 Isambard Kingdom Brunel’s ship the Great Britain, 3270 GRT, is launched. It is the first iron-hulled, propeller-driven customer vessel. 1844 P&O cruises from London to Vigo, Lisbon, Malta, Istanbul and Alexandria aboard the Iberia (1833). P&O introduced “leisure excursions” that allowed passengers to travel to the Iberian Peninsula and the Mediterranean from Southampton. As the forerunner of modern cruises with these voyages, has led P&O Cruises to be recognized as the world’s oldest cruise line. 1858 Customers pay to join the Ceylon, a P&O vessel, for what is considered the first cruise. 1867 Author Mark Twain features a P&O voyage from London to the Black Sea in his novel The Innocents Abroad. The ship, Quaker City, was the first cruise from New York to Europe. 1880 The P&O ship the SS Ravenna, was the first ship to be constructed as a 100 per cent steel superstructure. 1881 The Ceylon is refitted to become a purpose-built customer ship. 1889 The SS Valetta was the first ship to use electric lights 1891 Augusta Victoria was a German ship which carried 241 passengers and expanded the cruise ship to a wider market. 1900 The first ship that was built exclusively for luxury cruising was the Prinzessin Victoria Luise of Germany. 1912: The Titanic sank which stimulated the improvement of safety on cruise ships. 1910 White Star introduces the Olympic, 46,329 GRT, and, the year after, the Titanic (which sinks having collided with an iceberg on 12 April 1912). 1911 The Victoria Louise becomes the first vessel to be built exclusively for cruising. 1912 Cunard introduces the Laconia and Franconia as custom-built cruise and line voyagers. 1914 Otherwise the beginning of WWI, all production of cruising came to a halt 1920–1933 In the USA during Prohibition, ‘booze cruises’ from US ports allow customers to drink and gamble while visiting ports in Cuba, Bermuda and the Bahamas. 1922 The first world cruise was made by Cunard’s Laconia, a relatively small ship at 20,000 GRT and with 2,000 customers in three-class accommodation, sails on a world cruise which lasted for six months. 1927 Ile de France, made by the French, was a passenger ship that was completely decorated in a modern, contemporary style and introduced the now-famous art-deco style and ended the era of the classic, severe interior of the cruise ships. 1929 P&O’s Viceroy of India is introduced. It is the most impressive ship of the time, featuring the first use of turbo-electric power and the first onboard swimming pool. It is a dual- purpose liner (UK to India) and luxury cruiser. 1930s Union Castle offers holiday tours to South Africa at highly competitive rates of £30 (third class), £60 (second class) and £90 (first class). 1934 The luxury cruise liner RMS Queen Mary is launched. With 1,174 officers and crew and 2,000 customers, the ratio is less than 2:1. 1934 United States Lines builds SS America, an oil-fired liner capable of speeds up to 25 knots. It is commissioned as a troop carrier in 1941. 1938 SS Normandie, 83,000 GRT, undertakes a 21-day cruise: New York–Rio de Janeiro–New York. The cost per customer is from US$395 to US$8,600. 1939 The Second World War starts. Cruise ships such as the Queen Mary and Queen Elizabeth are converted as troop carriers. 1939-1945 Many cruise ships were used to transport troops including the Queen Mary, Aquitania, Cap Arcona, Laconia, Queen Elizabeth, and the Orontes. Many ocean liners were destroyed during the war. 1958 The first transatlantic commercial jet-aircraft crossing leads to the demise of the liner market and the downturn of business for many cruise companies. 1966 The cruise industry recovers – mainly centred on the UK. 1970s New cruise companies are established, with 1% of holidaymakers taking cruise holidays. Cruise companies work closely with airlines to develop combined fly–cruise products. TV series The Love Boat airs in 1977. 1979 Onboard revenue represents 5% of total revenue. 1984 Carnival Cruises airs first TV commercial. 1986 Windstar, a vessel with computerized sails, is introduced, marrying the romance of sail with modern comforts. 1990s Consolidation and globalization occurs, leading to mergers and acquisitions. 1999 Eagle-class vessels such as Voyager of the Sea and Grand Princess are introduced, bringing higher levels of sophistication, economy of scale and the concept of the vessel as a destination. 2000s Segmentation and lifestyle cruising. Sustained growth for the North American market (8% annually) from 1980 to 2000. 2000 Royal Caribbean International’s (RCI) Explorer of the Sea (137,308 GRT) is introduced. 2002 There are an estimated 700 million tourists worldwide, of whom 10.3 million are cruise tourists. 2.4% of the US population, 1.3% of the UK population and less than 1% of Europe’s population cruise annually. 2003 Cunard’s Queen Mary 2 (150,000 GRT) is launched. 2003 Carnival Corporation becomes the largest cruise operator when they merge with P&O Princess Cruises. 2006 NCL launches the freestyle concept. 2009 Royal Caribbean’s Oasis-class ship Oasis of the Seas enters service – at 224,282 GRT she becomes the world’s largest cruise ship. The first in it’s Oasis-class of ships. With a gross tonnage of 224,282 and a displacement of approximately 100,000 metric tons, the Oasis-class ships are the world’s largest passenger ships, carrying a maximum of 6,296 guests and approximately 2,200 crew members. Oasis-class ships feature a split structure, with the 5-deck high “Central Park” and “Boardwalk” outdoor areas running down the middle of the ship. These ships feature a lush tropical garden, a zip line, two Flow Riders, two rock climbing walls, an AquaTheater with divers performing off of a 60ft platform, and a working carousel. 2010 The total worldwide cruise market is estimated to be almost US$30 billion, with Carnival Corporation in control of a 51.6% share of worldwide revenue and Royal Caribbean 25.6%. 2011 Carnival Corporation announces its 100th ship. 2015 Increasing numbers of cruise ships are being built using liquefied natural gas (LNG) as a fuel source. 2016 Cruise ships embrace Internet technologies to ensure guests remain connected. 2017 Nearly 1,000 ports around the globe and expansion in markets like Asia and Australia. 2018 The industry made a concerted effort to be more green as many operators announced plans to ban single-use plastic, and Hurtigruten turned (fish) heads by promising to use “dead fish and waste” to power ships. It was a big year for CLIA, which held its first Asia Conference, first Luxury Showcase, its first roundtables and moved its River Conference to Paris 2019 The popularity of cruising in Asia is expected to grow further over coming years as cruise lines deploy new, larger vessels that have been purpose-built for Asian consumers. Ships in Asia will increasingly call at more places. Destinations in the continent expected to have growth include India, Malaysia, Indonesia, Singapore, Japan, Hong Kong and South Korea 2020 The 25th ship in Royal Caribbean's fleet, Symphony of the Seas is currently the world's largest cruise ship. The giant cruise ship has 228,081 gross registered tons, measures 238 feet tall and spans 1,188 feet long. The Language of Cruising Some of the key terminology used in the shipping and cruise industry: aboard: on a ship about: to turn a ship around aft: back of a ship, the rear of the ship all hands: all crew members alleyway: any passageway on the ship anchor: a heavy object attached to a rope or chain and used to moor a vessel to the sea bottom, typically one having a metal shank with a ring at one end for the rope and a pair of curved and/or barbed flukes at the other. atrium: a lobby-like space where you’ll find the purser or guest services at-sea day: a day when the ship is travelling a long distance and does not stop at a port of call beam: the width of the vessel at its widest part, widest point of a ship berth: a bed or bed-space on a ship; the location at the pier where the ship is moored or tied up bow: the front of the ship bridge: part of a ship where navigation is managed, the ship’s command center, located forward, topside bulkhead: any of the partition walls used to separate various areas of the ship buoy: marker or an anchored float used for making a position on the water, a hazard, or a shoal and for mooring cabin: a compartment or passenger accommodations for passenger or crew on a cruise ship course: direction of travel cruise documents: the documents you receive before sailing, which may include the cruise ticket, a booklet and shore excursion information cruise line: is a company that operates cruise ships and market cruises to the public cruise ship: is a passenger ship used for recreational and leisure voyages, in which the journey itself and the onboard amenities, attractions, activities, and entertainment options are integrant part of the cruise experience deck plan: diagram of each deck deck: floor level on a ship disembark: to go ashore dock: a place in harbour, pier, wharf, quay; the structure at which a ship ties up when in port draft: the depth of water a boat draws dry dock: place where a ship is serviced embark: to go aboard a ship to begin a journey even keel: travelling smoothly fathom: depth of water (1 fathom = 1.8 metres) forward: the front area of the ship free port: a restricted zone at a seaport where duty-free import goods are sold galley: the kitchen area of a ship gangway: the area of a ship’s side where people board and disembark (walkway and doorway), walkway providing passage Gross Registered Tonnage (GRT): a measurement of the volume of enclosed public spaces on a ship gun port: opening in the ship’s side for gangways or store is loading helm: refers to the steering wheel and to the post to which it is attached hold: interior of a vessel below decks where cargo is stored hull: the main body of a vessel inside cabin: cabins that do not have a window keel: the bottom of the hull knot: a measure of speed at sea equal to one nautical mile per hour latitude: measurement of location north and south of the equator leeward: sheltered from the wind Lido deck: where you will find the pool and typically other amenities such as restaurants, bars, and a fitness center longitude: measurement of location east and west of the standard meridian maiden voyage: the first time a ship embarks on a voyage with passengers on board mess (crew or officer): staff dining area midship: middle part of a ship moor: to tie a ship up, an arrangement for securing a boat to a mooring buoy or a pier muster drill: lifeboat drill or exercise muster station: the place on a ship where passengers should assemble in the event of an emergency nautical mile: equal to one minute of latitude; see also knot open seating: passengers sit where they wish during extended times outside cabin: cabins that do have a window overboard: over the side or out of the ship pier: a loading platform extending at an angle from the shore, platform on pillars extending into the sea pitch: front-back motion of a ship in rough waters or high winds port: a place or destination a ship visits; the left-hand side of the ship when facing forward porthole: cabin’s window port-of-call: a place where a ship stops on a voyage; any place where you stop for a short time when you are visiting several places, shops, or people registry: where a ship is documented roll: the side-to-side motion of the ship rudder: hinged plate used to steer a ship running lights: navigation lights used to increase a ship’s visibility and direction of travel (red = port; green = starboard) shore excursion: a port-based tour or activity space ratio: ‘elbow room’ passengers will have on board stabilizer: an underwater device that helps reduce a ship’s motion or roll starboard: when facing forward, the right-hand side of the ship stern: the back or rear part of the ship tender: a small boat that ferries passengers between port and ship; lifeboat; also used to ferry guests to a destination when a harbour is unavailable tide: periodic change in sea level caused by gravitation wake: waves created by a ship’s hull waterline: where the hull of a ship meets the surface of the water watertight doors: doors used to seal off sections below the waterline windward: the direction towards the wind Activity #1: Identify specific moments in the history of cruising that could be considered political, economical, social or technological or a combination of these. (www.cruiselinehistory.com ) ( www.cruisepassenger.com ) Assessment#1: Name:____________________________________ Year & Section:_______ Score:____ Identify the answers on the following questions. P and O - The longest running ocean cruise line in the world. __________ The first cruise ship to be constructed with 100% steel superstructure. __________ The original name of P & O Cruises. The Love Boat - The 70’s television program series that help popularized the cruise ship as a form of holiday vacation. __________ Who established the first transatlantic steamship? __________ The very first ship to use electric lights. Carnival? - The principal owner of the largest cruise ship as of the year 2020. Titanic - The name of the cruise ship that sank in 1912 which stimulated the improvement of safety standards on cruise ships. __________ The cruise line known for its freestyle cruising. Caribbean, Symphony of the Seas - It is considered the 2020 largest cruise ship. Match column X with column Z by specifying only the letter of the correct answer on the space provided. The following are nautical terminology. column X column Z C direction of travel A. bow D diagram of each deck B. bridge G main body of the vessel C. course I a measure of speed at a sea which is equal D. deck plan to one nautical mile per hour E. dry dock J the place on a ship where passengers assemble F. galley in an event of an emergency G. hull L the side to side motion of the ship H. keel N an underwater device that helps reduce a I. knot ship’s motion J. muster station O it is where the hull of the ship meets the K. porthole surface of the water L. roll K cabin’s window M. space ratio F kitchen area of a ship N. stabilizer B command center of the ship O. waterline A the front of the ship E the place where ship is serviced H the bottom of the hull M elbow room passengers will have on board “be a light for all to see” Matthew 5:16 Week 3: The Elements of Cruising Topics to be discussed: At the end of the discussion, the learners Definition of cruise are expected to: Nature of the business Analyze the nature of the cruise Diversity of markets industry. Distinguish the different elements that are relevant in the operation of a cruise ship. Determine the different factors that categorized cruise business as an industry. According to Mancini (2011, p. 3) the definition of a cruise is best stated as being ‘a vacation trip by ship’. However, this brief and unassuming phrase avoids identifying the broad range of variety that is encompassed by today’s cruise industry – contemporary cruises, traditional cruises, adventure or expedition cruises, world cruises, coastal cruises, repositioning cruises, ferry cruises, river cruises and cruise conferences. The legal definition of a cruise ship in the United States (Cornell Law, 2017) is: ‘a passenger vessel over 100 gross tons, carrying more than 12 passengers for hire, making a voyage lasting more than 24 hours any part of which is on the high seas, and for which passengers are embarked or disembarked in the United States or its territories’. In Europe, the definition is worded differently (Department for Transport, 2016): ‘a “cruise” means a transport service by sea or inland waterway, operated exclusively for the purpose of pleasure or recreation, supplemented by accommodation and other facilities, exceeding two overnight stays on board.’ Others define cruise ship as ‘a luxury vessel that is used to take passengers on a pleasure voyage in a journey that is as much a part of the experience as the various destinations on the way’. Nature of the Business The cruise industry has grown and continues to grow enormously in scale. It is frequently regarded as being a small but significant sector in the tourism industry (Lück, Maher, & Stewart, 2010). The fact that the journey is relatively short with many stoppages at exotic locations, the ships are designed accordingly, thereby making more room and utilizing that space for an open design that exudes extravagance. It would be appropriate to liken a cruise ship to a floating hotel complete with a hospitality unit amongst other crew members. According to the analysis of Cruise Lines International Association (CLIA), from its 2020 State of the Cruise Industry Outlook report., cruising sustained 1,177,000 jobs equaling $50.24 billion in wages and salaries and $150 billion total output worldwide in 2018. Newly released data shows 32 million passengers are expected to set sail in 2020. The report also finds an industry- wide commitment to responsible tourism practices, with a focus on environmental sustainability and destination stewardship. The report highlights the industry’s $22 billion investment in the development of new energy efficient technologies, partnerships with local governments in key destinations, and a commitment to reducing its rate of carbon emissions by 40% by 2030 compared to 2008.  Papathanassis and Beckmann (2011) identified, from an academic discipline, that cruise business activities can fall under the guise of maritime tourism, cruise tourism or indeed maritime leisure. Indirectly, the industry provides employment for other third-party businesses including food suppliers, engineering services, manufacturers, port agents and authorities, transport companies, tourist companies, hotels, destination companies, car-hire and employment agencies. The business of operating what is in many cases a large-scale mobile tourist destination at sea is unique and the complexities support the claim that this world is best referred to as the International Cruise Industry. There are approximately a million people employed directly by the cruise industry in cruise companies at sea and ashore and in other directly related roles. Based on the newly released CLIA 2018 Global Economic Impact Analysis, passengers spend $376 in port cities before boarding a cruise and spend $101 in each visiting port destination during a cruise. North America accounts for the highest rate of cruisers with 14.2 million North Americans cruising in 2018. To meet ongoing demand, CLIA Cruise Lines are scheduled to debut 19 new ocean ships in the upcoming year, resulting in a total of 278 CLIA Cruise Line ocean ships projected to be in operation by the end of 2020. Obviously, the industry growth results in positive economic progress in communities around the world including accelerating their efforts to be a leader in responsible tourism. Today, Carnival Corp is the largest cruise line operator in the world, with more than 150,000 employees and a fleet of 600 ships, owning multiple cruise line brands such as Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, P&O Cruises (Australia), Costa Cruises, AIDA Cruises, P&O Cruises (UK) and Cunard. Carnival is followed by Royal Caribbean, NCL Norwegian, and MSC. The following are elements of cruising relevant to its operation: C – Connectivity: Niavis and Vaggelas (2016) identified that cruise port connectivity is created by two main elements. The first key element is the physical position of the cruise port where it is near to other attractive cruise ports. This is the most important area in boosting up cruise ship traffic in a port (Dragovic et al., 2014). The second key element is the ability of cruise port authorities to build up strong cooperation channels with cruise lines. R – Regional competitiveness: Porter (2003) identified that the regional competitiveness is relevant with the industry struggles against neighboring rivals through engaging investment from foreign, public and private capital, generating innovation environments by entrepreneurs, skilled employees and creative workers and encouraging the technological advancement. U – Utilization: In principle, cruise industry undergoes seasonality impact. I – Infrastructure: The size of the cruise ship is getting wider and wider, longer and longer, bigger and bigger. Thus, cruise lines would examine the large capability for serving the cruise like terminal space, pier width, pier length and other port facilities. S – Security: Normally, the cruise would stop over a cruise port during a journey. The customs quarantine control facilities, waiting area of the terminal, and counters for entry and exit control should be enough. E – Environmental management: Cruise ports produce an innovative energy model to assess the effectiveness of the building's energy conservation measures.  P – Ports of call: Port of call refers to the number of cruise ports established as a home port. A home port mainly refers to the port in which a cruise ship will change over or take on the majority of its passengers while taking on supplies, fuel and stores. O – Ocean: Ocean is defined as the oceanic conditions, including typhoon, water depth, tidal range, tidal current, and water clearance. The oceanic condition is critical for water sports, water creational activities and pleasure diving. R – Recreational activities: The recreational activities are mainly provided for amusement, enjoyment, fun and pleasure for cruise passengers. The varieties of recreational activities attract the cruise lines arrive at a preferred cruise port. T – Traffic: The capacity of cruise ports attracts cruise ships to stop at cruise port during a journey. There are four (4) factors that categorized the cruise business as an industry, namely: CULTURE CONTRACTS (at sea) (for maritime employess) CRUISING as an Industry CONTEXT COMMUNITY (of the maritime settings) (at sea) Culture Cruise culture is formed by a mix of maritime and hospitality culture. The culture is manifest in the distinctive language that has emerged and made more visual through the use of uniforms, ranks, and ship and cruise routines. Contracts Cruise contracts reflect the need to operate a vessel 24/7, with crew living and working on board and subject to international rather than national regulations. Context The context of being on a cruise ship means that the landscape and/or seascape changes with the cruise. The destinations add both a promisingly attractive dimension for travellers and a potential political issue for the freedom of passage when travelling. The other aspect of context is that the ship is at sea with all that means in terms of weather, escapism and safety. Community Cruise crew communities are frequently multinational, working and living in close contact with fellow crew members, subject to shipboard regulations and in a position where they must be seen to fit in and be effective. The Anatomy of Cruise Ship The Cruise Markets The last decade was one of record growth for the cruise industry and that trend looks set to continue into the 2020s. According to the Cruise Lines International Association (CLIA), 32 million passengers are set to travel on cruise ships in 2020, up from 30 million in 2019. Since 2009, cruise ship passengers have grown from 17.8 million to 30 million, an annual growth rate of 5.4%. There are currently 278 ocean cruise line ships operating across 55 cruise companies with another 19 ships scheduled to debut in 2020. Passenger carrying capacity is scheduled to increase by one-third between 2020 and 2025. In addition, there are now over 500 river cruise ships. More significantly, cruise industry revenues have grown even faster, from approximately 15.7 billion in 2010 to an estimated 31.5 billion in 2020, a compounded rate of growth of 7.2%. Fleet composed of several hundred large cruise ships carrying millions of passenger plies routes in all geographical areas in an expanding range of more than 500 destinations worldwide. Indeed, the cruise industry has increased in popularity all around the world, serving a heterogeneous clientele with well-differentiated expectations and preferences in the Asian, European, and North American markets. The cruise industry is a dynamic and vibrant business. Despite a turbulent an debilitating period of economic downturn in the years since 2008, the industry has remained strong and, if anything, it has demonstrated its capacity to derive benefit from being able to deploy ships according to market opportunity (Parker, 2016). The cruise market is complex with a number of recognizable segments, including age, culture, nationality, language, lifestyle and income, all of which may be influenced by economic wellbeing, politics, and competition from other forms of holiday (Chen, Lijesen, & Nijkamp, 2016; Hung & Petrick, 2010; Shim, Kang, Kim, & Hyun, 2017). Worldwide, the ocean cruise industry has an annual passenger compound annual growth rate of 6.63% from 1990 - 2020. Growth strategies to date have been driven by larger capacity new builds and ship diversification, more local ports, more destinations, and new on-board/ on shore activities that match demands of consumers. The industry is also expanding rapidly internationally. These activities help increase penetration in a core North American market that still has growth potential. Only 53% of the target North American market (or 24% of the whole U.S. population) have ever taken an ocean cruise. All the cruise ships in the entire world filled at capacity all year long still only amount to less than ½ of the total number of visitors to Las Vegas. Global Cruise Industry Deployment Market Share by Region (2019) Region Market Share Caribbean 34.4% Mediterranean 17.3% Europe (without Mediterranean) 11.1% China 4.9% Australasia / New Zealand/ Pacific 4.8% Alaska 4.7% Asia (without China) 4.3% South America 2.3% All Other 16.2% (Source: CLIA 2019 Cruise Trends and Industry Outlook https://cruising.org/news-and-research/- /media/CLIA/Research/CLIA-2019-State-of-the-Industry.pdf ) Source Region of Passengers Year North America Europe Other Worldwide Passengers Carried 2017 14,130,410 6,417,159 4,617,856 25,165,425 2018 14,167,168 6,764,273 5,069,580 26,001,022 2019 14,526,363 6,933,353 5,397,702 26,857,418 2020 14,829,278 7,075,424 5,717,044 27,621,746 (Source: https://cruisemarketwatch.com/growth/) Since the 1960’s, North America has remained the core source market for passengers, despite the industry’s global expansion. North America is not only the largest market, it has also been the most stable market over the years, benefiting from consumer spending, proximity to the Caribbean and additional deployments in Alaska, Bermuda, and the Mexican Riviera. As cruise lines like to say, they “operate movable assets”, meaning they can move ships pending market conditions, thus managing temporary concentration in any one market or region. (Cruise lines global market share (2019). Source: Cruise Industry News, 2020) Cruises per region (2018). Source: CLIA, 2020 https://www.researchgate.net/figure/Cruise-lines-global-market-share-2019-Source-Cruise-Industry-News- 2020_fig3_340236982 Cruise demand is greatest in North America, and this is one of the more obvious reasons why regions such as the Caribbean have witnessed substantial cruise tourism growth over the past few decades. Cruise companies have even diversified the products and ports/destinations served when targeting the North American market, with some companies (e.g. Cruise West – www.cruisewest.com) offering cruises up the west coast of the continent to Alaska and several tour companies in the United States marketing package tours that feature cruises to Antarctica. The cruise tourism product can be said to have been globalized because of substantial international demand for international cruise experiences. Micro-cruises are one of the fastest growing segments of the cruise industry. In 2020 there are more than 1,400 micro-cruises lasting three days or less. By far the fastest growing segment of the cruise industry has been the advent of luxury expedition cruising, especially in Arctic and Antarctic waters. The cruise industry has just ended an incredible decade of growth, and is well poised to extend its success into the next decade. Despite its growth, however, the industry is still just a small segment of the travel industry. At an estimated 32 million passengers worldwide in 2020, it still has less than half of Orlando’s, the most visited city in America, 75 million visitors in 2018. Assessment #2 Name:_______________________________________ Year & Section:_________ Rating:___ Instruction: Briefly explain each of the factors that categorized the cruise business as an industry. 1. Culture ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ 2.Contracts ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ 3. Context ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ 4. Community ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Enumerate the elements of cruising. 1. 6. 2. 7. 3. 8. 4. 9. 5. 10. Short Essay: Why do you think North America remained the core source of passengers in cruising? ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ “Do not be anxious about anything, instead pray about everything” Philippians 4:6-7 Week 4-5: Working Onboard Topics to be discussed: At the end of the discussion, the learners are Roles and responsibilities on a cruise expected to: ship Differentiate the roles of staff and crew Shipboard culture as working force in the cruise ship. Management of Hotel Services on Classify the services provided onboard Cruise the cruise. Recruitment practices Describe the shipboard culture. The Roles and Responsibilities on a Cruise Ship Cruise ships are likely to be heterogeneous, that is, containing a mixture of crew with different nationalities, of various ages, with different backgrounds and prior learning and individual needs and aspirations. Traditionally, ships employed officers and ratings (non-officers) or crew who performed tasks related to the safe passage and commercial activity of the vessel within a hierarchical regime. This regime was often operated on a ‘watch-keeping’ basis, from which the term ‘officer of the watch’ is derived. Automation has, on many vessels, changed the strict pattern of 24-hour watch-keeping, but for any ship there remains a need to maintain operational effectiveness, safety, and security at all times. Watch duties are traditionally four hours in duration: 0800 to 1200, 1200 to 1600, 1600 to 2000, 2000 to 2400, 2400 to 0400 and 0400 to 0800. Typically, a deck or engineering officer will undertake two four-hour watches in a 24-hour period. In contemporary cruising, employees are designated officers, crew, and staff (Bow, 2002). Officers denote employees with specific authority. They are located within three departments: deck, engineering, and hotel services. The crew is similarly divided between these departments, but in number this group represents the largest segment. The last group, staff, includes personnel, many of whom may be contracted to work on board by a concessionaire, such as shop managers, hairdressers, beauticians, entertainers, casino staff and photographers. The resultant ‘ship’s company’ is a large and diverse community that, because of scale and complexity, requires care in terms of management and coordination. A ship’s master has, according to Branch (1996), absolute authority on board a cruise ship. This authority, acting in lieu of the ship’s owner, provides powers to act accordingly in cases where the ship, crew, customers and/or ship’s contents are at risk. There is a subtle difference between this role and the post of captain, which is deemed to be a rank, although frequently the captain on a cruise ship will hold the position of master. Other officers on board may also hold the rank of captain; for example, the staff captain, who is charged with a responsibility relating to the crew, staff and customers on board. Some roles on the ship have cross-departmental responsibilities. The environmental officer has a direct responsibility to the captain but an overarching responsibility to ensure company policies are adhered to in respect of regulations for environmental matters. Many ships also employ a personnel and training officer with cross-departmental responsibility to ensure matters relating to training and personnel development are managed to meet company policies.  Three (3) Main Departments of a Ship deck department captain technical/engineering department Hotel/passenger services department The deck department The ship’s master is in-charge of the ship but also oversees navigation and the deck department. On a day-to-day basis, the deck department is the responsibility of the chief officer or first mate (first officer). The larger the vessel, the more requirement for additional deck officers, who are termed second, third or fourth officer (the number of these depends on the size of the ship). This department oversees navigation and care of the vessel. One of the senior officers in this department will also hold the position of safety officer. The deck officers’ complement is frequently made up with junior officers in training, who are called ‘cadets’. Crew positions include the chief petty officer (deck) and petty officers (deck), who supervise deck crew under the direction of deck officers; deck carpenter, who attends berthing and departure; quartermaster or coxswain, who is a senior rating responsible for steering; junior seamen, seamen grade 2 and seamen grade 1, the latter two share lookout and steering duties with deck officers; the bosun (boatswain), who is the deckhands’ overall foreman; and day workers employed in general duties. All seamen employed in the deck department who are not officers fall into the category of either ordinary seamen (OS), who are deemed to be unskilled, or able-bodied seamen (AB), who are considered skilled. The deck department can also include specific posts, such as security. Deck officers can be identified by their stripes, which are plain gold. Masters and captains have four stripes, chief officers have three stripes, first officers have two and a half stripes, second officers have two stripes, third officers have one and a half stripes and fourth officers have one stripe. Cadets frequently have either half or one stripe. The symbol for the deck department is a diamond. Security can be recognized by their brown stripes and their symbol – a capital ‘S’. Most cruise ships appoint an environmental officer, who is recognizable by his/her green and gold stripes. The engine department The engine room is the domain of the chief engineer, who is responsible to the master for the vessel’s propulsion, steering and power for auxiliary systems such as heating, ventilation, air conditioning, lighting, and refrigeration. The chief engineer is also responsible for fuel, maintenance, and repairs. Depending on both the size of the ship and the type of propulsion system, cruise ships may require additional engineering officers and cadets, including electrical engineers.  Crew positions in the engine department include chief petty officer (motorman) and petty officer (motorman), who supervise the engine room under the direction of engineer officers; junior motorman, motorman grade 2 and motorman grade 1. Some vessels have specific posts, such as electricians. Chief engineers have four stripes, which are gold and purple in alternate colours. The chief electrician has three stripes, the first engineer has two and a half stripes, and the second engineer has two stripes. There are two symbols for this department: the propeller signifies technical and engineering, while an electric-current motif is used for electrical officers. The hotel department Depending on the scale and size of operations, the hotel service team may certainly be extremely diverse, but that aside, for a cruise it dominates in terms of numbers of employees. An individual with the title of hotel manager, director of hotel services, passenger services director (PSD) or executive purser is usually in charge of this department. The term ‘purser’ is traditionally related to the controller of finances (hence the derivative of the word ‘purse’), but different cruise companies use the term in different ways. The senior officer in charge of hotel services will have four stripes, which are gold and white. The executive chef, the food and beverage manager and/or deputy purser will have three stripes. The senior assistant purser, assistant food and beverage manager, bars manager and accommodation manager (housekeeper) will have two and a half stripes. The second purser will have two stripes. Depending on the particular cruise company, their focus on core values, the type of passengers or customers and the product on offer, the hotel services department may be configured to reflect a bias somewhere between being along more traditional nautical lines to a point representing more contemporary hotel services as seen shoreside. Other departments: The medical department Given the size of the community on board, it is not surprising that a cruise ship requires a medical team. The principal medical officer (PMO) leads this department, supported by as many medical officers or doctors as are required. Depending on the ship and the clientele, there may be a senior nurse or two or more nurses (usually at officer level). Some vessels also employ orderlies, who tend to be designated as ratings. The very largest of ships may also employ a medical dispenser, physiotherapists and dentists. Some ships have a morgue on board. The medical officer is usually identified as having three stripes, which are gold and red. The symbol for this department is the caduceus (staff of Hermes). The provision of medical support on board is a necessity for the well-being of the shipboard community. The medical team can also generate revenue in providing specialist support and, for that reason, some cruise companies locate the medical team under the management of the hotel services department. The entertainment department The cruise director, who tends to be an experienced professional from the world of entertainment, leads this department. As the departmental name implies, any of entertaining customers (and crew) is managed from within this department. The range of employees can therefore include musicians, dancers, comedians, actors, singers, social hosts, sound and lighting crew, stage technicians, guest lecturers, port lecturers, health, fitness and sport instructors, children’s staff and specialist experts. A deputy cruise director frequently assists the cruise director. The cruise director is usually regarded as having a rank equivalent of three stripes and is linked by association to the hotel department. CREW MEMBERS o service employees who work under the direction of a manager or other supervising staff o may or may not have direct contact with passengers o eligible to receive tips in addition to their wages if they work directly with passengers onboard o work long hours, with little time off during their contract o have their own crew facilities o strictly forbidden to socialize with any passengers onboard a ship o not allowed to utilize any public elevators and stairways unless they are working at that time (e.g. waiters, bus boys, chefs, cabin stewards, bar staff, carpenters, electricians, plumbers) STAFF o consist of upper level positions o they have direct contact with cruise passengers except for some entertainment employees o work shorter hours, receive time off while in port o they have more access to onboard facilities o may be allowed to utilize public elevators and stairways o may also be allowed to mingle with passengers (e.g. cruise directors and assistants, shore excursion employees, entertainment employees, musicians, dancers, DJs, retail employees from the photography, art, & casino departments, spa & salon employees) OFFICERS o elite group of employees who oversee the nautical and mechanical aspects of the ship, ensuring the safety of the passengers and crew at all times o highly trained and report directly to the ship’s Captain o they have complete authority over any crew or staff member onboard the ship o they also receive the highest wages paid to any employees o they have a privilege of having a private stateroom Jobs by Department: Activity and Shipboard Entertainment o keep the passengers busy and entertained o better known as “cruise staff” activity leader or instructors work with passengers in small groups, leading them in a specific activity (diving, dancing, yoga) o entertainers who provide music (either playing it or as disc jockey) o they sing, act, juggle, or perform other forms of entertainment either on poolside, clubs, casinos, or on stages o cruise directors are responsible for all these areas, making sure that passengers are participating and enjoying each experience  Deck and Engineering o in-charge of keeping the ship well maintained, running smoothly, and ensuring everyone’s safety o keep detailed records o knowledgeable of maritime laws and regulations o need to have some experience onboard a ship and specialized training Service and Hospitality o these positions can also be called “hotel management” jobs o the common denominator with all of these jobs is that you are providing a direct service to passengers, whether it is cooking food, serving food or beverages, cleaning cabins, doing laundry, and a wide range of other duties o pursers are in charge of all onboard accounting during eash cruise Personal Care and Shipboard Medical o workers in these jobs are also providing direct care to passengers o services are in the form of massages, hair care, manicures, or even medical care o you will need to have the proper credentials or licenses before you can apply for any of these jobs Corporate Office Position o the necessary people who keep the company running, not just the ships o in these positions, you can be promoted to executive or leadership roles Who is Who on Cruising? A typical ship employs thousands of crew members, and while many terms are common (chef, waiter, etc.), some positions are less well known to novice cruisers. The following are some of the people working on board the cruise: Captain o the commander of the ship in-charge of both sailing and hotel operations and has full responsibility and authority for the performance of the ship and the ship’s company, and for the comfort and safety of the passengers Staff Captain o responsible for safety related matters aboard the ship such as navigation, environment, public health, and maintenance Passenger Services Director o responsible for all hotel service and revenue areas for passengers and the ship’s company and prepares all necessary documents, shipboard accounts, and financial matters Chief Technical Officer (Chief Engineer) o oversees all engineering, electrical and ventilation systems as well as vital connections between the ship and land points all over the world Chief Medical Officer o tends to the health of passengers and crew Chief Radio or Communication Officer o oversees in-room satellite TV programming, ship-to-shore phone calls, internet services, and all shipboard communication systems  Hotel Manager/ Hotel Director o responsibility includes guest satisfaction and comfort, human resources, security, expenditures, and revenues; works closely and reports to the Captain about the state of the ship, ensuring the quality of the ships environment is on par with the standards of the cruise line Purser/ Chief Purser o administer day-to-day affairs such as management of passenger accounts, mail, messages, printing, storing of valuables (safety boxes), immigration and customs requirements, payroll, staff visas and passports, currency change Purser Staff o trained and well versed in immigration and customs laws and responsible for the ship’s documentation when traveling and they often deal with customer service, fielding questions and complaints with sensitive financial issues Executive Chef o responsible for nearly every aspect of food onboard the ship such as ordering, quality control, disease and code regulations, cooking, and food preparation, overseeing kitchen staff Food & Beverage Manager o oversees the areas of the ship where food and beverages are served, ordering in bulk, food budget, calculations and costs on a large scale, working closely with other members of the kitchen staff Cabin Steward o the housekeeper responsible for cleaning a certain number of rooms onboard the ship, that includes changing sheets, windows, bathrooms, floors, etc. Chef De Partie o must have a strong knowledge of fine cuisines and exotic foods and must be able to organize menus for themed events and responsible for cooking and preparing these meals Cruise Director o coordinates all entertainment and informational activities that take place as part of the cruise experience; presides passenger orientation and disembarkation meetings; manages the musicians, entertainers, onboard lecturers, social hosts, health club staff, photographers, shore excursion manager Maitre D’ Hotel o offers the best quality dining service to passengers; trains the staff in correct serving techniques and high serving standards; supervises the quality of the food and beverages to ensure they are up to standard Sous Chef o he/she is an integral part of any functioning kitchen and works closely the Executive Chef and prepares the food and the kitchen for the respective meals onboard Receptionist o check passengers in and out during arrival and departure; they settle accounts at the end of the cruise and field questions and complaints so you need to be diplomatic and have a strong back bone Spa Therapists the spa is mostly a concessionaire  Housekeeping Staff o it can even be called a custodial position and as a custodial you will generally assist wherever needed with cleaning Restaurant Staff o here you are most likely to begin as an Assistant Waiter and then work your way up Photographer Cruise Staff o if you are an outgoing and bubbly personality, then this is a good job for you. You are part of the entertainment team and will welcome guests to the shows, host bingo, dance with the guests, etc. Casino Staff o here you have various positions from dealers to cashiers etc. Child Care (also called Youth Staff) o in this position you will deal with children of various ages and nationality, and additional languages are always appreciated, and you will need the necessary certificates for child care. Musicians o there are various positions from duo acts to stage musicians. Most cruise lines hire directly nowadays however, there are also agents that place acts on ships. Theatre Technicians o from lighting to sound, all these positions are needed to run a good show. These are usually in-house jobs, so you apply directly with the cruise line. Cooks o there are truly a lot of various positions in the galley; these positions are in house and need to be applied for directly; working in the galley or F&B (Food and Beverage) in any form usually really limits the time you can go ashore Galley Utility o this is a basic position that will generally be doing cleaning of the galley, washing the dishes or any other duties required. Bar Staff o most will start as Bar Waiters and work up to being Bartenders, Sommeliers, etc. Assistant Systems Manager o if you have a strong IT background in both hardware and software, then you can look at this. It is a high-pressure position and you need to have patience as you will deal with guests and crew. Retail Staff o the benefit of working in the shops is that they are closed when in port, so you can really go out and see the places the ship docks. However, keep in mind that when at sea the shops are open all day and stay open until late at night. Art Auctioneer Assistants Shore Excursions Staff o you need a strong background in guest services and sales before you can even think of applying for this position as well as a sound knowledge of the world and geography. With this job you will need to go on tour with the guests.  Printer o This position is usually a very high-pressure role responsible for all printing materials on board as well as maintaining and repairing the machines. Printing is done daily. Deck Cadets o if you have studied in the Maritime field and wish to pursue a career in the deck department, then this is an option for you. Shipboard Culture The crew on board a mega-cruiser is likely to be diverse in terms of nationality and culture. Leadership on cruise vessels is a very special issue, which covers a bundle of differences compared to usual work environments. It is valid to claim that all branches differ from one another, but the extent and intensity of specific issues in the cruise industry make it indispensable to an understanding of leadership aboard a cruise vessel based on this very specific context. Staff on board spends months of full-time working and living together, separated from the usual social networks. Even though modern communication media might ease this isolation, the effect is quite limited. These specific working conditions do not only affect employees but also leaders up to the top of the hierarchical pyramid. A cruise ship represents nearly the full range of differentiation in the global labour market, low paid staff from developing countries below deck, up to quite highly paid officers on the bridge, which is not only a broad scope of professions and skill levels, but represents a widespread multicultural arena. Traditional work is based on the difference between work and private life. A full-time job might require 40 hours out of the total 168 hours in a week, which is less than a quarter. The traditional employer does not care about what an employee does in the time off duty or where and with whom this time is spent. This split between professional and private life is linked with specific roles, and the private part helps the individual to balance out challenges and possible impositions of work. The situation aboard a cruise vessel is quite different. The employee is on duty or very close to the workplace 168 hours per week; he or she will spend the time off duty with colleagues, and even in the age of internet and satellite phone, social life with people onshore is very limited. Professional life and social life are blended, and as the professional life is the dominant part, social life is a derivate of it. Lee-Ross (2008, p. 477) describes those “occupational communities” as being “more acute on longer duration voyages” and recommends leaders to pay attention to the formation and the development of those communities. This unbalanced situation will be even more strained for those employees who are in direct customer contact, due to individual needs to compensate the particular demands of work in the service sector. Although there is a distinctive difference between working and taking a holiday n a cruise vessel, some aspects, such as the isolation and the building of communities occur among the passengers as well, and some studies report interesting interactive aspects between staff communities and passenger communities. (Foster, 1986; Yarnal & Kerstetter, 2005) The staff on cruise vessels typically comes from dozens of different cultures (Lane, 1996). This creates additional demands on leaders to establish a working leadership relationship overcoming cross-cultural misunderstandings. One way to reduce the complexity ensuing from the multicultural composition of the crew could be to run the business with a “national accent”, which could be an attempt to give some direction to the leadership culture of the company. There could be a chance to establish something like a global leadership culture and to benefit from intercultural diversity. Leadership relationships in a multicultural setting will not have a broad basis of common cultural norms and values and therefore tend towards a less person and more fact-oriented style. This might help to reduce negative impacts of culturally based behavioural styles, but the price to pay might be weaknesses regarding the loyalty of employees and the management of fluctuation. This challenge is boosted even more by tough competition for qualified staff in a fast-growing market. It may be critical for everyone to get along, to work as a team and to accept cultural and individual differences. However, it is important to show common courtesy towards each other. The following are some tips to keep in mind to get along with your colleagues: o have patience o talk to people o respect the various nationalities o read the rules and understand them, ask questions if you are not sure o be friendly and keep a positive attitude o be receptive to new challenges and new responsibilities o you can count on others helping you, you are not alone o be disciplined and punctual The Management of Hotel Services on Cruise Everything to do with managing hotel services on a cruise ship tends to be a reflection of the scale of the vessel and the labour intensity associated to product quality and service quality. In addition, if the ship and the tradition related to the development of cruising as a nautical enterprise are deemed to be a valuable marketing focus, the hotel services team is likely to be led by the executive purser; otherwise, the senior role might be identified as passenger services director or hotel director. On smaller ships the role could be designated as the hotel manager or chief purser. Thereafter, hotel services tend to be line-managed by two or three senior managers who may have the job title of deputy purser. These deputies focus on food and drink, passenger services (including accommodation) and finance. Various cruise companies operate hotel services management to suit their strategic needs. The provision and orchestration of food and drink and accommodation are demanding from a human resource (HR) perspective. The effective performance of any cruise ship is irrevocably underpinned by the quality of service provided by people such as waiters, accommodation stewards, sommeliers and public service stewards. This presents a serious challenge to cruise companies. In periods of growth, cruise companies are faced with seemingly mind-boggling HR requirements. In the galley, the team is frequently configured using a variant of more traditional approaches to the hôtellerie-style brigade of chefs. This revolves around the executive chef supported by a team of sous chefs who control the hot plate (referred to as the ‘hot press’ on some vessels), where service takes place in the galley. These sous chefs may also be required for service to satellite restaurants, depending on the style of production and expectation for standards of food. They can even be called on to provide entertainment to guests in the form of cookery demonstrations. The restaurants on larger ships operate using an overarching maître d’hôtel (maître d’), who coordinates a team of restaurant managers. Each restaurant will employ a host to welcome guests and facilitate their entry and seating in the restaurant. Head waiters are allocated to sections of large restaurants (often up to 300 covers per section), where they have an overview of waiters who work with an assistant or ‘busboy’ to serve 16–18 covers. These types of large restaurants will frequently employ a head sommelier and a team of assistant sommeliers to serve drinks and wine. Most mega-cruisers include a buffet-service area as well as fast-food outlets such as pizza bars or burger bars. These are operated using a team of assistant buffet stewards supervised by head waiters or assistant head waiters. The bars manager on a vessel organizes a multi bar operation that can include a dispense bar for restaurant drinks sales, show bars, cocktail bars, lounge bars, deck and pool bars, champagne and caviar bars, crew bars and, in some cases, an officers’ mess bar. The bars are coordinated by bars supervisors, who work with the individual bar stewards and their assistants. Food and beverage managers working with assistant managers/pursers liaise with the various managers to coordinate operations. Stores managers receive, store and issue goods to the relevant personnel working in the galley, bars, restaurants or point of requisition. The following are hotel services provided on board a cruise ship: o Food and drink: executive chef and kitchen brigade, including room service chefs; bars manager, bars supervisors, bar stewards, assistant bar stewards; maître d’hôtel, restaurant managers, head waiters, head sommelier, assistant sommeliers, waiters and assistant waiters; crew and officers’ mess chefs and stewards and utility stewards o Passenger services: accommodation manager, accommodation administration, accommodation supervisors, public area supervisor (decks), public area supervisor (lounges), utility stewards, cabin stewards, butlers, laundry master, assistant laundry master and laundry assistants o Administration and personnel: administration manager/assistant purser front office, assistant administration manager, junior assistant pursers/ front office manager, receptionists, crew assistant purser, shore excursion manager, shore excursion assistant purser and junior assistant pursers o Additional areas: shops, florist, print shop, administration stores, art auctions, communication centre, casino, spa, beauty centre; photography may also be located within the remit of the post holder o Finance: accounts manager, revenue manager Recruitment practices Finding a job on a cruise ship can take some investigation. Some companies are in business to act as a form of introductory agent, charging the applicant for the benefit of gaining access to potential employers. Others are genuine agents who are intermediaries in the recruitment process, often with offices located close to or within countries that are targets for employment. Some agents are secondary companies established by the cruise company to facilitate recruitment. Finally, some cruise companies employ directly.  Trade journals, for either shipping and nautical matters or hospitality and catering, can be a useful source of information because major employers use these to gain access to a more specialized and experienced applicant. Managers in the hotel department should have an appropriate undergraduate or postgraduate higher education qualification, which may be busines, hospitality or tourism based. Alternatively, many employers recognize professionals who have experience of working and managing in the hospitality industry but who may not have formal qualifications. Applicants should think more than twice before parting with money to secure an introduction or to get help with finding any type of job on a cruise ship. The best starting place for many appropriately qualified applicants is with the cruise companies themselves. Finally, applicants should remember that the work and lifestyle might not suit everybody. There are many examples of potential crew members who were inappropriately prepared for their experiences on board and who either had to be repatriated because they were unable to adjust or adapt, or worked their way through but left at the first chance. It is not in the best interests of a cruise company to be faced with serious HR retention problems, because it is costly from a selection, recruitment and training point of view, potentially disruptive for other crew members and can impact on service quality. The future of Filipino workforce in the cruise sector In 2007 roughly one quarter of the total Filipino workforce was living outside the Philippines. Of these 8.7 million Filipinos, 1.1 million were so-called labour migrants, Filipinos moving back and forth from their home state to another state for the purpose of employment (OSCE, IOM, ILO, 2006). Roughly half of them (480,000 Filipinos) were working in the Middle East alone 240,000 in Saudi Arabia and 220,000 in Asia (POEA, 2008). A relatively small number of Filipino labour migrants worked in the cruise sector. If one deducts the number of officers and ratings from the 48,000 Filipinos working on board cruise ships in 2007, roughly 36,000 Filipinos were passenger ship personnel (POEA, 2008). Most of them can be categorized as low- to semi-skilled workers to be found mostly in lower ranked status and wage positions (Chin, 2008, p. 114). In an industry news, two statements were published: “The ship’s deck officers are European, the social staff American and British, and the hotel staff, perhaps the line’s greatest asset are Filipino” (Cruise Industry News, 2009). Cultural values define roles in a social structure and shape work related attitudes of crew members (Triandis, 1994). Interviewing recruitment agents about the demand for Filipino crew, most of them highly appreciated Filipinos as crew members due to their outstanding service-oriented attitude and praised their cultural characteristics. The expert on cultural analysis, Geert Hofstede, (1984) categorized cultural values in accordance with his so-called “cultural dimensions”. According to Hofstede, Filipino culture is characterized by a high degree of collectivism which supports job motivation and loyalty, as well as the willingness to co-operate with coworkers. Secondly, it is characterized by high power distance which means that Filipinos accept and expect that power is distributed unequally (Hofstede & Bond, 198). This again has a decisive influence on job motivation and subordination and fits very well into the organizational culture of a cruise ship.  Filipino seafarers in general, and those working on cruise ships in particular, are the ‘preferred nationality’ of a ship’s workforce. The often cited (e.g. ABS CBN News 2017; ABS CBN News 2016a; 2016b; 2016c; ANC 2016; Sbarsky 2014; Terry 2013; Milde 2009 ) narrative is that: Filipino seafarers are ‘hardworking’, ‘flexible’, ‘subservient’, ‘family-oriented’, and ‘happy’ employees who earn well whilst travelling the world ‘for free’ on-board cruise ships. Filipinos have an excellent professional reputation partially based on their cultural background. Even if there exists a high demand for Filipino labour migrants, Filipinos increasingly have to compete with other nationals for employment on the cruise labour market. Currently Filipinos are still a dominating nationality on cruise ships, however tendencies towards changes in the distribution of nationalities must be anticipated. This could be attributed to the fact that suitable Filipino workforce is difficult to access, or that other industries in other countries offer better employment conditions, or that Filipinos are simply too costly. Whatever reasons are valid, cruise corporations have to develop a long-term oriented recruitment policy that can handle fluctuations on the cruise as well as global labour market and ensure a stable pool of skilled personnel. Assessment #3 Name:____________________________________ Year & Section:_______ Score:_____ Instruction: Write TRUE if the statement given is correct and FALSE if it is incorrect. _____ A ship’s master has the absolute authority on board a cruise ship. _____ The engineering department is responsible for overseeing the navigation and care of the vessel. _____ The hotel department dominates the services provided on cruise in terms of numbers of employees. _____ Some ships have a morgue on board. _____ The chief purser is the one who leads the ship’s entertainment department. _____ Staff are the elite group of employees on board a ship. _____ Food and beverage managers are responsible for every aspect of food onboard such as quality control, cooking and food preparation and overseeing kitchen staff. _____ Filipino seafarers are the preferred nationality of a ship’s workforce. _____ Onboard hotel directors are similar to land-based hotel managers in terms of work responsibilities. _____ Staff captains have the same skills and knowledge of a captain. _____ English is the only official language spoken on board, or anywhere else where guests may be present. _____ Most mega-cruisers include a buffet-service area as well as fast-food outlets such as pizza or burger bars. _____ Staff can mingle with cruise passengers. _____ Cruise line companies use agencies as intermediaries to facilitate recruitment process for seafarers. _____ Cruise ship is a floating hotel and resort. Enumeration: Three (3) main departments of a ship 1. 2. 3. Three (3) designated employees on board 1. 2. 3. Four (4) tips on how to get along with colleagues 1. 2. 3. 4. ”Be still let go and let GOD” Psalm 46:10 Week 6-7: Guest Services Topics to be discussed: At the end of the discussion, the learners are Internal and external factors that expected to: influence guest services Classify the cruise passengers Guest service systems for cruise lines according to various segmentation. Profiles and specific needs of cruise Analyze the factors affecting guest guests service and behavior Manage guest care which is important in the tourism related environment such as in cruise industry. There are challenges when providing consistent high-quality guest services, some of which stem from the rather nebulous use of the word quality. The term ‘quality’ presents a number of complexities. Quality can correlate to prestige, which in turn can relate to reputation, admiration, luxury and, as a result, the price. Some authors suggest that quality refers to a product or a service (or a combination of both) that is predictably uniform and reliable, suitable for the market and made available at the lowest cost (Deming, 2000). Other theorists proclaim that quality is more to do with the guest’s perception of what is fit for purpose (Juran, 1980) or that quality can be to do with creating ‘zero defects’ and getting it right first time (Crosby, 1996). The success of a cruise business, in terms of securing repeat custom and capturing new business, is directly related to reputation. In turn, past and present guests and their perception of service and product quality directly inform that reputation. It follows that cruise companies who focus their attention on meeting and indeed exceeding guest expectations of service and product quality will be in a stronger position to retain existing guests and attract future guests. Companies invest time and money in order to prioritize their guest service programmes so that both staff and guests recognize the importance of getting guest service right. There may be, however, a yawning chasm between promoting guest service initiatives and delivering effective guest service initiatives, and it is certainly not easy to deliver consistent high-level quality service. Disgruntled employees, unexpected events such as itinerary changes and production problems resulting in interruptions to service delivery are among the potential threats to maintaining service quality. The formula for a successful cruise is demanding. Getting everything right and exceeding expectations means ensuring officers, managers, crew and staff are trained, instinctively guest-oriented, empowered to help guests if there is a problem, aware of expected quality standards and capable of exceeding those standards. Guest services present serious challenges for managers at sea for several reasons. Guests are demanding because we live in a media-rich society that highlights consumer rights and advocates the benefits in complaining. However, it should also be recognized that being at sea can create many positive guest service advantages. The interaction on board a cruise ship is complex. Guests and crew are together forming relationships for several days. In this situation, guest service is ongoing and cumulative, and there are likely to be many occasions when crew members can provide moments of pleasure that may be important to ensure an ordinary vacation becomes special.  From a guest services perspective, there is much to be gained in predicting guest needs and, while this approach is important throughout the cruise, there is evidence to suggest that first and last impressions are important in setting a template for service perceptions and sealing that set of perceptions about service experiences (Office of Quality Management, 2005). The human side of service quality Guest service can be affected by personal factors related to life on board. Cruise ships operate employment contracts for fixed terms. In some cases, the contracts can be six, eight or ten months in duration. Crew work every day for these contracts and are expected to be consistently effective. Some cruise companies have the reputation for operating more ‘enlightened’ employment policies than their competitors. Those with better reputations ensure there is a fair and open approach to time off ashore, to covering for illness or unavoidable absences from the work area and to maintaining a quality social environment for all on board. A factor to consider, however, is that guest service can be at risk if the server is unhappy for whatever reason and is in need of a break. The nature of a shipboard community is that it can be a happy and almost sheltered environment where the people who work supportively together are friends and companions. If there is a breakdown in that arrangement, it can be uncomfortable and so it is not in the interest of the cruise company for staff to be unhappy in either their social time or their work time. Many cruise companies ensure that the crew elect or appoint a social club director to work with paid employees to construct a programme of events and activities. Despite the apparent monotony of having to work lengthy contracts, the reality for crew is invariably different. The attraction of travel and the places that crew visit, coupled with the ‘package’ in terms of food, inexpensive drink, use of phones and the Internet as a means of staying in touch, entertainments and a lively social life can mean that life on board is frequently more attractive than life at home. Many crew members report that after a month at home they are looking forward to returning to work (Gibson, 2008). Guest Care Guest care recognizes the need to provide practical assistance and emotional support during times of significant stress or crisis. CLIA encourages each of its members to develop these capabilities in-house or by partnering with outside sources to provide for this assistance. All CLIA cruise lines are encouraged to determine, as soon as possible after a traumatic incident involving any guest, whether additional assistance or accommodation is needed from the cruise line. Many of our lines have specified, trained, and organized care teams or company designated personnel who are equipped to handle critical, unexpected incidents and provide the assistance needed. This policy is intended to identify actions to be considered by all of CLIA’s members when responding to a critical incident or implementing guest care response plans. CLIA does not advocate a one-size-fits-all approach as varying levels of guest care support will be needed depending upon each situation. CLIA cruise lines should develop their own detailed procedures, and they will vary based on vessel size, passenger and crew demographics, itinerary, and other factors.  CLIA believes the following practices should, whenever possible under the circumstances, be considered in addition to any other assistance that may be appropriate. o Initial responders Ship’s officers and crew offer immediate assistance to guest and family/traveling companions and determine the level of assistance that may be needed. Shore-based care teams or company designated personnel and other land-based resources, as and when appropriate, coordinate support and determine what is available and what is needed. Shore-based care teams or designated personnel coordinate with ship’s crew and reach out to guest’s shore-based relatives who are listed as an emergency contact, as appropriate. o Guest assistance considerations Depending upon the circumstances of each situation, the following considerations should be evaluated: ✓ Provide immediate, complimentary communications to shore. ✓ Inquire about guests and family logistical needs (move to another stateroom, port of departure, landing of remains, etc.) ✓ Provide family assistance support, such as providing a private dining area or conference room, retrieving onboard portraits, and assisting with packing of personal belongings or other practical support, as warranted. ✓ Determine if male or female Guest Services staff is appropriate to provide support. ✓ Assign care team or company designated personnel to join guest/family on ship or land, as needed and taking visa restrictions into account. ✓ Determine whether any accompanying relative who disembarks after the loss of a loved one requires assistance from the ship, port agent, care team and/or designated shore- based personnel. ✓ Refer guest and family to assistance counseling (either onboard or telephonically) depending upon the situation and need. ✓ Support guest and family/companions with travel insurance paperwork and other documentation necessary to obtain available benefits. ✓ Serve as liaison with U.S. embassy or local governments, when appropriate. o Post incident considerations Following the immediate response, additional post incident considerations should be evaluated on a case by case basis and dependent upon the guest’s and family’s wishes. ✓ Assess guest’s need for assistance with air, hotel, and transportation arrangements. ✓ Consider contacting guest/family once they have returned home to determine if they require additional support. ✓ Consider whether guest’s name should be removed from marketing/promotional communication lists. INTERNATIONAL CRUISE LINE PASSENGER BILL OF RIGHTS The Members of the Cruise Lines International Association are dedicated to the comfort and care of all passengers on oceangoing cruises throughout the world. To fulfill this commitment, our Members have agreed to adopt the following set of passenger rights: The right to disembark a docked ship if essential provisions such as food, water, restroom facilities and access to medical care cannot adequately be provided onboard, subject only  to the Master’s concern for passenger safety and security and customs and immigration requirements of the port. The right to a full refund for a trip that is canceled due to mechanical failures, or a partial refund for voyages that are terminated early due to those failures. The right to have available onboard ships operating beyond rivers or coastal waters full- time, professional emergency medical attention, as needed until shore side medical care becomes available. The right to timely information updates as to any adjustments in the itinerary of the ship in the event of a mechanical failure or emergency, as well as timely updates of the status of efforts to address mechanical failures. The right to a ship crew that is properly trained in emergency and evacuation procedures. The right to an emergency power source in the case of a main generator failure. The right to transportation to the ship’s scheduled port of disembarkation or the passenger’s home city in the event a cruise is terminated early due to mechanical failures. The right to lodging if disembarkation and an overnight stay in an unscheduled port are required when a cruise is terminated early due to mechanical failures. The right to have included on each cruise line’s website a toll-free phone line that can be used for questions or information concerning any aspect of shipboard operations. The right to have this Cruise Line Passenger Bill of Rights published on each line’s website. Demography, profiles of cruise guests and specific needs Cruise passengers are attracted by direct and targeted marketing. The product is designed specifically with people in mind and the cruise brands are extremely focused on the guests to whom they are selling. This creates excellent levels of knowledge about who is likely to be on board, but within the typical profiles that emerge there are likely to be a broad range of specific needs. Most of these specific needs can be predicted and catered for, but there are always going to be unforeseen instances, such as individuals who bring something new in terms of a need or requirement that adds an extra challenge to operational management. Moreover, with Generation Z set to surpass millennials as the largest demographic group in 2020, the future of the industry appears bright. Generation Z and Millennials will comprise 32% and 31.5% respectively, of the U.S. population in 2020. That means two out of three Americans is either a millennial or a generation Z. Both generations share a common preference for “experiences” over material items and are committed travelers. Both have approximately 70% plus positive feelings about the cruise industry and have emerged as committed cruisers. The two groups represent a combined spending power of roughly three trillion dollars and are poised to surpass baby boomers in the next several years as the largest spending demographic group. The growing interest of millennials and generation Z members in cruising is one of the factors that is driving the upgrade of internet connectivity on cruise ships. Additionally, cruise companies are adjusting to the changing demographics of cruise passengers by increasing single occupancy cabins and single oriented activities. There are now over a dozen cruise lines, led by Norwegian Cruise Lines, offering single traveler cabins.  (Source: CLIA Global Passenger Report 2018) Interestingly, passenger age variation does not just differ according to cruise line, it varies by destination as well. According to the CLIA 2018 Global Passenger Report, short and close-to- home cruises are more likely to attract younger passengers, whereas cruises with longer itineraries and exotic destinations tend to attract older cruisers. An exception, though, is Canada and New England cruises, which are close to home for many U.S. cruise passengers and tend to be relatively short, averaging at under ten days, but still, attract an older demographic of cruise passenger. Transatlantic and world cruises are particularly popular among an older crowd. This is likely because retirees/pensioners have more time to spend on a long cruise. Family-friendly destinations such as the Caribbean, the west coast of North America, Australia and the Mediterranean have the lowest average ages and the shortest average voyage lengths. The rise in popularity of short, close-to-home cruises has made cruising more affordable and accessible than ever, even for families with limited resources which has resulted in lower average ages for passengers on these itineraries. In 2008, CLIA offered the following profile of the average cruise vacationer: o Predominantly white/Caucasian (93%) person. o Around 46 years old (down from 49 in 2006). o Well-educated, with 65% of college graduates, and 24% of post-graduates. o 83% are married. o 58% work full-time. o Average household income of around USD90,000. o A cruise trip each three years among other three types of yearly vacations. 2019 Passenger Capacity Snapshot CLIA Global Ocean Cruise Passengers (in Millions) YEAR Percentage Rate (%) 2009 17.8 2010 19.1 2011 20.5 2012 20.9 2013 21.3 2014 22.34 2015 23.06 2016 25.2 2017 26.7 2018 28.2 2019 30  Ways to segment cruise market: Where are the passenger coming from? Country Passengers in Millions United States 11.9% China 2.4% Germany 2.19% United Kingdom 1.93% Australia 1.34% Canada 0.92% Italy 0.77% Spain 0.51% France 0.5% (Source: https://cruising.org/news-and-research/-/media/CLIA/Research/CLIA-2019-State-of-the-Industry.pdf ) Cruise Segments: Explorer - The segment we love to love. These folks take four or more vacations per year, have disposable income, and take longer cruises, exotic cruises, and cultural learning cruises. Education and social causes are important to them, and so are making