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Articles
Itinerary planning requires a combination of talent, including knowledge of revenue management, logistics and geography at the very least.
An itinerary must be attractive enough so that people want to go there and pay for it – and simply put, the more they are willing to pay, the more successful that itinerary will be. |
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2008 is going to be a good year for the industry, was the consensus among financial analysts that follow the industry as this issue was going to press. “It will be a good year, with bookings and pricing up year-over-year,” said Felicia Hendrix, managing director at Lehman Brothers. “But it will not be spectacular,” she added. |
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With the globalization of the cruise industry, more ships are spanning the globe. While the cruise companies are tapping into new markets worldwide, their existing customer base is also looking for new experiences. In addition, passengers are willing to spend more for a cruise that is perceived to be more exotic. The combination is driving new deployments and itineraries. |
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Pull into port, get off the ship. Sun on the beach. Do a little shopping. Ogle the crystal-clear Caribbean waters, the architecture, the quaint town. Swim with dolphins. Then get back on the ship, sail overnight, and do it all again the next day. |
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The first-come-first-serve rule is one example of the challenges facing Mediterranean cruise ports vis-à-vis congestion and cultural differences as vacations at sea become more popular worldwide. Many cruise lines want certainty when it comes to docking, while the ports want discretion to put ships where they want. |
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The luxury and adventure markets are two separate niche markets. While luxury passengers may seek enrichment on their cruise, some may want to sip a martini in Monaco or have lunch in Portofino. But the true adventure passenger wants to experience enrichment whether that includes paddling up an African river or jumping ashore on the Polar ice cap. |
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Working at Sea: The industry's focus is increasingly on recruitment and retention as the cruise fleet grows larger along with the world's shipping fleet and the competition for qualified people heats up. At the same time, there are efforts underway to improve the living and working conditions on all ships at sea. We are glad to say that the cruise companies are striving to be in the forefront – offering better living accommodations, recreational activities, training and advancement opportunities, health care, pensions and other benefits. |
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With all the new and bigger cruise ships entering service over the next few years, the industry's biggest challenge may be the human element and finding enough qualified seafarers. |
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The marine operations function faces a variety of challenges as the industry sails into 2008. Fuel consumption continues to be a major concern due to dramatically increasing prices, but recruitment of deck and engine crew and officers are also taking on added significance in an overheated maritime employment environment. At the same time, the eroding value of the dollar is putting pressure on crew that is paid in dollars, but lives in non-dollar environments. |
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“We are always focused on the food – we look at it, analyze it and study trends; food is always in the picture,” said Natko Nincevic, senior vice president of hotel operations at Carnival Cruise Lines. |
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While there are many new and exciting developments at Royal Caribbean Cruises these days, Chairman and CEO Richard Fain said the most important aspect of the business is the strength of the market positions of its cruise brands. “It is tempting to talk about what's new, but the bottom line is to continue to operate strongly and successfully – that remains our bread and butter,” he said in a one-on-one interview with Cruise Industry News.
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With more than 300 cruise ships in the world, most of which drydock every two-and-a-half to three years, ship repair is a big business. Carnival Corporation has stated that its brands alone plan 25 drydockings in 2008. |
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Mexico is highly regarded and critically important to the cruise industry, despite a recent passenger tax passed by the country’s congress. At the October meeting of the Florida Caribbean Cruise Association (FCCA) in Cozumel, port and tourism officials of this northernmost Latin American nation earned kudos for their professionalism, their awareness of what is needed in the marketplace and their collaborative spirit.
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Northwest Pacific ports offer unique attractions on cruises to Alaska and British Columbia and are also setting new standards with a clean air strategy. |
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Pushing the bar: While the cruise industry continues to grow, it is pushing the product and experience bar ever higher with new ships. At the time of writing, there were 40 new cruise ships on order for deliveries through 2012, and more orders are expected, according to shipyard and cruise line executives we spoke with. Not only are more ships being built; they also cover a wide range of sizes – from small to medium, large and gigantic. Enabling the building of bigger ships is new technology as well as new rules for safety and environmental protection, which are being phased in. The cruise industry already has an enviable safety record, and the new requirements can only push the industry to even higher standards.
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If the continuously increasing ship sizes and ever increasing number of special features are excluded, there have not been too many major changes in ship design and technology for several decades, according to Markus Aarnio, managing director of Foreship, a ship engineering and design firm. However, due to recently introduced new rules and regulations, together with the question of future fuels, significant changes are taking place today, he said. |
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Annual Report |
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The 2008 Annual Report is now available for preorder (shipping in May) by clicking here , 
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