Cruise Tourism - LP1.pdf

DEFINITION By definition, a cruise is a journey on a large ship for pleasure, during which you visit several places A cruise is a vacation onboard a ship. It is a leisure trip undertaken to both enjoy the facilities and amenities of the ship and visit interesting destinations at th...

DEFINITION By definition, a cruise is a journey on a large ship for pleasure, during which you visit several places A cruise is a vacation onboard a ship. It is a leisure trip undertaken to both enjoy the facilities and amenities of the ship and visit interesting destinations at the same time. A vacation trip by ship (Mancini, 2011) Not limited to sea voyage, but also involves river and lake voyages They are also called "Floating hotels/Floating resorts" Sometimes even termed as "Floating Cities" (mega ships) Includes many important elements --- Accommodation, Food and Beverage, Entertainment, Shopping, Health and Wellness, etc. A cruise is not about ships transporting people to various destinations for their vacation; rather, the ship itself is a destination. Cruise tourism is one of the fastest growing segments of the tourism industry that involves a luxurious form of travelling onboard a cruise ship with specific prearranged itinerary wherein the cruise ship calls at several ports before coming back to its home port. HISTORY OF CRUISING Ancient Times - There are traces of proof that ocean going vessels were already used in as early as 4000BC but the earliest historical evidence of boats is found in Egypt during the 4th century (301AD-400AD). - Much of its history talked about the ocean sailings for practical reasons such as transportation that includes migration and transport of cargo, fishing, exploration or to discover other lands, warfare or to conquer, and to trade or commerce. The shift from Cargo to People - Ships were used to transport all sorts of cargo and mails. Soon in the 1850s and 1860s, ships began to focus more on passengers rather than mail, with very basic luxuries. - However, passengers during these times were divided by classes and those in the steerage class (cabins below the water line) were responsible for bringing in their own food. - In terms of transatlantic crossing comfort, it was the British and North American Royal Mail Steam Packet (now Cunard) that took a cow on board to supply fresh milk during the 14-day sea travel. It began with cruises to the Mediterranean that expanded to include India in Asia, Australia and New Zealand. From Crossing to Cruising Later, the 1900s marked the Golden age in cruising, when the popularity of transatlantic crossing was diminished brought about by significant innovations in the transportation industry, the introduction of air travel. Did you know? The world’s 1st commercial airline flight was on January 1, 1914 which operated between St. Petersburg and Tampa, Florida. It lasted only for 4 months but was a significant start for future transcontinental flights. Connecting the United States of America and Europe, the two great commercial centers of the world was the most important air route and with so many experimental flights in the 1920s and 1930s by different airline companies, Pan American inaugurated the world’s first transatlantic passenger service on June 28, 1939 between New York and Marseilles, France and on July 8, 1939 between New York and Southampthon. Because of this innovation in the transportation sector, soon in 1958, with the American Boeing 707, more transatlantic passengers traveled by air, leading the ship companies to shift their business model and focus more on pleasure voyages rather than passenger transportation purposes. It was also during this era that companies began to design ships that resemble five-star hotels providing elegant accommodations and entertainment with the tradition of dressing fabulously for dinner. Cruise ships during these times became the epitome of glamour, sophistication and romance. The concept of cruising was even more introduced to the masses when the TV series Love Boat was aired in the 1970s to 1980s. It created so much awareness that it also generated over billion dollars in revenues for the cruise lines. Did you know? To date, the biggest cruise ships are the Royal Caribbean International’s Oasis Class Ships namely: Harmony of the Seas, Allure of the Seas, Symphony of the Seas, Oasis of the Seas, Wonder of the Seas and Utopia of the Seas. To better appreciate the history of cruising, here are few of the important years and events: Year Event 1801 The first practical steam-driven vessel was the tug Charlotte Dundas The ship that became the first to cross the Atlantic from New York to 1818 Liverpool was Savannah of Black Ball Line. It carried 8 passengers on a journey that took 28 days Peninsular Steam Navigation Company was founded, which later 1837 became the Peninsular and Oriental Steam Navigation 1840 Sam Cunard established the first transatlantic steamship The first iron-hulled, propeller-driven customer vessel, the Great Britain 1843 was launched The first pleasure cruiser occurred. P&O's SS Iberia cruised from London 1844 to Vigo, Lisbon, Malta, Istanbul and Alexandria Customers paid to join the Ceylon, a P&O vessel, for what was 1858 considered the first cruise Britannia, a Cunard Line ship embarked on a 14-day trans-Atlantic 1880 voyage from Liverpool, with the cow on board The Peninsular Steam Navigation Company (now P&O Cruises) became 1884 the first dedicated leisure cruise line, transporting passengers purely for pleasure 1910 White Star introduced the Olympic White Star introduced the Titanic, which sank after colliding with an 1911 iceberg on April 12, 1912.  Cunard introduced the Laconia and Franconia as custom-built cruise and 1912 line voyagers During prohibition in the USA, "booze cruises" from US ports allowed 1920-33 customers to drink and gamble while visiting ports such as Cuba, Bermuda, and the Bahamas Cunard's Laconia sailed on a world cruise. Customers were divided in 1922 three-class accommodation P&O's Viceroy of India was introduced. It was the most impressive ship of its time which featured the first use of turbo-electric power and first 1929 onboard swimming pool. It was dual purpose: liner (UK-India), and luxury cruiser The luxury liner RMS Queen Mary was launched. It had 1,174 officers 1934 and crew and 2000 customers United States Lines built the SS America, an oil-fired liner capable to speeds up to 25 knots SS Normandie undertook a 21-day cruise: New York-Rio de Janeiro- 1938 New York. Cost per customer was USD395 to USD8600 World War II was declared. Cruise ships such as Queen Mary and Queen 1939 Elizabeth were converted as troop carriers Boeing 707's first and regular commercial jet services across the Atlantic 1958 on New York - London Routes. It led to the downturn of business for many cruise companies and passenger ships were sold 1966 Cruise industry recovered - mainly centered on the UK New cruise companies were established. These companies worked closely with airlines to develop combined products - fly-cruise. The 1970s television series "Love Boat" aired in 1977 to 1986 which starred Princes Cruises' Pacific Princess 1984 Carnival Cruises first television commercial 1986 Windstar, a vessel with computerized sails, was introduced 1990s Globalization and consolidation led to mergers and acquisitions 2000s Segmentation and lifestyle cruising 2000 Royal Caribbean International's Explorer of the Seas was introduced Cunard's Queen Mary 2 was launched. Carnival Corporation became the 2003 largest cruise operator when they merged with P&O Princess Cruises Norwegian Cruise Line (NCL) introduced and launched the freestyle 2006 concept of cruising Royal Caribbean's Oasis of the Seas was launched. It was the world's 2009 largest cruise ship at that time. Royal Caribbeans Allure of the Seas, was launched, the world's largest 2010 cruise ship at that time. 2011 Carnival Corporation announced its 100th ship, Carnival Magic Royal Caribbean International launched world's largest cruise ship 2016 Harmony of the Seas  Princess Cruises and NCL are devoting their new vessels to the Chinese 2017 market. Manila, Philippines became a cruise homeport of Star Cruises' Superstar Virgo Royal Carribean International's Oasis-class ship Symphony of the Seas first sailed the high seas in April. Preopening sailing was 31st March. It 2018 is the largest ship to date with with 2759 staterooms, carries 6,680 guests and 2,200 crew. CRUISE INDUSTRY TRENDS The Cruise Line International Association (CLIA) is the world’s largest trade industry association that provides a unified voice and leading authority of the global cruise community. CLIA supports policies and practices that foster a safe, secure, healthy and sustainable cruise ship environment for more than 24 million passengers who cruise annually. North America and Europe are the leading cruise markets; however, the Asian, Pacific and Latin American markets have great potential for emerging markets. CLIA 2016 and 2019 Annual Reports revealed the following: 1. More than 24 million passengers enjoyed a cruise in 2016 and around 30 million passengers in 2019. 2. 19 new and innovative cruise ships took to the waters. 3. USD117 billion economic impact for the cruise industry in 2015 to USD134 billion in 2017. 4. USD38 billion earned in total wages for the entire cruise industry in 2016 and USD45.6 billion in 2017. 5. Asian cruise passengers predominantly cruise only within Asia. 6. Short sailings dominate cruises taken by Asian passengers, mostly 4-6 nights. 7. For those who sailed outside Asia, Europe (74%) is the leading destination, followed by Caribbean/Western US/Hawaii (12%) and Alaska/Canada/New England (8%) destinations. 8. China as a destination is a growth powerhouse for the Asian cruising economy. 9. Asian source markets are becoming the new growth engine of the global cruise industry. A Closer look of the Asian cruise industry revealed that: 1. Among 12 passenger cruise markets, China is the leader in terms of passenger volume by cruise market in 2016 with 47.4% share, followed by Taiwan at 11% and Singapore 8.8%. The Philippines got 1.6% share. 2. In terms of number of ships there was a 12% compound annual growth rate with a total of 43 ships in 2013 and 60 ships in 2016. 3. In terms of number of voyages there was a 22% growth from 2013 to 2016. 4. Passenger capacity increased by 29.3% annually 5. There were 5,570 scheduled port calls in Asian countries in 2016 that is almost double that of 2013 6. There are 31 active cruise line brands in Asian water 7. Destinations with the greatest growth and most port calls in 2016 were Japan (1526) China (850) and South Korea (745). Other port calls growths are that of Vietnam (+150), Taiwan (+59) and Singapore (+17) 8. The top three ports by total calls are Jeju Island - South Korea, Baoshan/Shanghai – China, and Singapore 9. Most capacity of ships deployed or mid-sized, small-scale ships and large ship. Mega and Expedition ships are also deployed In the Philippines the Department of Tourism (DOT) and CLIA both commit to cooperate in developing the Philippine cruise industry by developing cruise ports, itinerary and guest experience. The Philippines’ proximity to major Asian Cruise markets like China, Japan and Hong Kong is the country’s competitive and comparative advantage in the Asia-Pacific region. The Philippine Ports Authority, in coordination with DOT, identified 8 ports as tourism gateways for cruise liners: Davao, Bohol, Boracay, Cebu, Manila, Puerto Princesa, Subic and Zamboanga. Cruise terminals are being developed in Puerto Princesa, Currimao in Ilocos Norte and Catagbacan in Bohol. In 2010, several cruise lines have already called at some Philippine ports: 1. A German cruise ship at the Iloilo port 2. MV Princess Danae, a Portuguese luxury cruise ship, at Davao port. 3. The Royal Caribbean’s Legend of the Seas, at the port of Puerto Princesa as part of the ship’s seven-night “Borneo Explorer cruise” 4. Star Cruises’ Superstar Gemini cruise package includes regular stops in Boracay Moreover, 2017 marked the year that Manila became homeport of an international cruise line - Star Cruise. The first cruise departing from Manila port was scheduled on March 19 and last trip on May 23. The first stop was Currimao port where passengers experienced the rich historical and cultural landmarks like Spanish colonial buildings and houses, Baroque churches, and white sand beaches in Ilocos, before the ship Superstar Virgo headed to Kaohsiung port in Taiwan. This cruise is a 6-day/5-night cruise that also included Hong Kong and at sea day/s. 2018 when bigger cruise ships docked Subic Bay Freeport (MS World Dream with 3,400 passenger capacity and MS Ovation of the Seas – Royal Caribbean International Cruise Line with 4,905 passenger capacity) Cruise ship arrivals boost local income not only of Subic but also of nearby communities in Olongapo City, Zambales, and Bataan. 2020 when MV Spectrum of the Seas, the largest cruise ship operating in Asia, docked in Subic (5,622passenger capacity and 1,551 crew members) CRUISING TODAY AND BEYOND As of 2019, The Cruise Line International Association (CLIA) revealed the following findings: 1. Cruisers have become much fascinated with “instagrammable” photos. - Cruises like to share online, specifically on social media sites such as Instagram, Facebook and the like, their travel experiences. 2. Cruisers seek total restoration. (Health & Wellness) - Cruise lines offer health and wellness services and programs. Facilities and menu onboard make for excellent rejuvenation 3. A shift from experience travel to achievement travel. - Cruisers no longer just want a mere sightseeing while on vacation, instead they travel with specific goals to achieve like climbing a mountain, survive spelunking, attend workshops, etc. 4. Cruisers are technology savvy. - Cruise lines meet expectations and demands by providing smart technology making sure cruise travelers have an excellent experience. 5. Travelers are mindful of the environment. - The cruise industry collaborates with the destination in minimizing ecological footprints. 6. Access is the new luxury. - Travelers nowadays want to experience destinations that were once hard if not impossible to access. Cruise ships make this luxury possible. 7. Generation Z takes the lead at sea. - This segment is to become the largest cruise consumer by 2020. They too prefer "experience" in their vacation. They are attracted by the cruises' unique vacation products which include multiple destinations to visit. 8. Off-peak escapades. - Off peak vacations are becoming popular. Travelers may escape winter or experience the freeze on the opposite world through a cruise. This is a once in a lifetime experience 9. Work and leisure combo. - Modern travelers opt for vacation that allows them to still do some remote work, never have to lose money while ion a holiday. They prefer vacations that will provide them this luxury, just like a cruise. 10. Women power. - Female travelers are growing. Cruise lines create female-attractive and female-centered itineraries, programs and cruises 11. Go solo. - Solo travel is rising in popularity. Cruising provides for the independence and convenience of going solo while visiting several exciting destinations. It also allows for memorable connections and once-in-a-lifetime experiences.