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This book addresses innovation management and product development in the cruise tourism industry. It explains how experience management has evolved from a strictly company-level, product- or service-focused tactical task to an industry-wide strategic challenge, and analyses the role of intangible reputational aspects of cruise experiences, as well as peripheral components and stakeholders, as increasingly important factors for customer acquisition and retention. Safety and risk issues are a central theme, as well as the cruise sector’s environmental and socio-economic impacts. Lastly, the book considers the increasing size of cruise vessels and the accompanying standardisation of facilities and itineraries, in conjunction with the hybridisation of cruise passengers in connection with expanding the competitive boundaries and intensity of competition in the cruise sector. The book approaches these issues as more than a mere public relations campaign, recognising the fact that they have since become the very essence of strategic cruise business development.



Cruise Safety


Chapter 1. Safety, Security, Health and Social Responsibility

Academic researchers have common interests, such as cruise research, however they approach their work with different perspectives—from different standpoints. This chapter explores the issue of perspective and how this is related to the research undertaken or the research valued. It also looks at factors that may influence an academic researcher’s perspective. These include institutional constraints such as those related to promotion and tenure and expectations for funded research, and discipline-specific factors such as sufficient journals for publication and the nature of research that will be funded versus non-funded. The chapter concludes with a call for an academic journal devoted to cruise research, and encourages research from diverse perspectives.
This essay is based on a keynote address at the Fifth International Cruise Conference in Bremerhaven, January 2014. The goal was to frame a series of papers focused on safety, security, health and social responsibility. Given the different perspectives from which scholars approach their work, the essay first focuses on definition of terms with consideration of how perspective influences both the definition of a research question or and ways to ameliorate a problem. It then illustrates with examples the influence of perspective, and concludes with a discussion of factors influencing academics and the perspectives they take. The goal of the essay is to raise to the forefront issues that underlie the work that cruise researchers undertake.
Ross A. Klein

Chapter 2. Crime at Sea: A Comparison of Crime on Carnival Cruise Lines, 2007–2011

Crime on cruise ships has received attention through hearings by the U.S. Congress at least eight times in the past 10 years, leading in part to passage of the Cruise Vessel Security and Safety Act of 2010 and subsequent amendments in 2014. This chapter looks at three types of crime reported to the FBI by Carnival Cruise Lines in 2011 (data for other cruise lines was not yet available), and compares these findings with three types of crime reported to the FBI by Carnival Cruise Lines in 2007–2008. Before exploring the data, it first looks at the context—the succession of hearings before the U.S. Congress and the nature of the problem from the cruise industry’s perspective versus on the basis of data the industry provided. The data reveals that incidents of physical assault and of theft are lower than on land, however the rate of theft suggests increased caution is warranted by passengers. The data also reveals that the rate of sex related incidents (particularly sexual assaults) on Carnival Cruise Lines ships is greater than on land, and that the rate has not appreciably changed in comparison to 2007–2008; however, in the most recent period there is a greater proportion of sexual assaults involving minors (children under the age of 18). The chapter concludes with recommendations to cruise lines and to passengers.
Ross A. Klein

Chapter 3. ‘Stranded at Sea’: Exploring Passengers’ Reactions During Incidents at Sea

Tragic incidents such as the grounding of the Costa Concordia highlight the pressing need to critically review, update, and ultimately improve the safety and security of cruises. Although such disasters are relatively rare, the increasing size and technological complexity characterising today’s cruise vessels, in conjunction with the passengers’ demographic diversity, pose an array of new safety-related challenges. Other incident types such as power failures and the resulting vessel immobility (e.g. the Carnival Triumph Incident) have indicated another safety vulnerability and the accompanying stresses of survival at sea; even on board a ‘luxurious lifeboat’. Following a collision, fire, or a power-shortage, it may often take a long time before passengers are evacuated. This paper aims at shedding light on this aspect of an emergency at sea, focusing on passengers and how they perceive, interpret and cope with a prolonged incident at sea. Following a content analysis of 28 press reports and online secondary data covering the Carnival Triumph, Costa Allegra, Carnival Dream, Azamara Quest, Carnival Legend and Costa Romantica incidents, 137 codes related to passengers’ first-hand recollections were extracted and analysed. The resulting model, consisting of factors potentially affecting passengers’ personal experience and reactions to incidents at sea, could serve as a relevant input for future safety procedures, emergency plans and crew training.
Alexis Papathanassis

Cruise Design: Business Models, Destinations & Products

Chapter 4. Rise of Alternative Business Models in the Era of Expensive Megaships

Ships build the main structure of cruising businesses of any kind. Their technical attributes are determined in advance to fulfill the long-term business strategies of their respective operators. However, decision-making in terms of new orders will increasingly become an issue, as it is expected that two future trends will be inconsistent: ships growing in size (costs per ship) and the increasing pace of future changes (market uncertainty). This paper discusses the position of the ship among the cruising business architecture and compares it to similar business concepts with alternative enterprise policies and stakeholder-network arrangements. The alternative businesses are categorized in four models: Onboard Hospitality and Entertainment (OHE) Condominium/Residential Model (CM), Shore To Shore Floating Services (SSFS) and Limited Onboard Involvement (LOI). The models are then compared with each other through a Morphological Analysis (GMA) based on the role of the ship in their respective businesses. Multiple scenarios are generated, ranked and interpreted to demonstrate which configurations of different ship attributes will best match to the studied business models to be driven by cruise companies. The scenarios picture a 15 years perspective up to 2030. The results can be utilized by cruise providers as a business expansion strategy or a stock of alternative plans in case of a market shock.
Mehdi Mozuni, Wolfgang Jonas

Chapter 5. Port Dues as an Element of Cruise Port Competitiveness

During development of maritime cruise industry, cruise companies carefully selected attractive destinations for their itineraries. There are few studies about cruise ports and destinations suggesting that this element of cruising has been scientifically neglected. Simultaneously, researches on cruising indicate that there are two main motives supporting tourists’ decision for choosing cruise tourism among many other tourist products. One of them is the pleasure of cruising and another one is visiting attractive tourist destinations. Both reasons are equally supported between decision makers, indicating equal research value. Analyses of cruise passenger consumption indicate a uniformity of cruise passengers’ consumption on board the cruise vessel and in destination. Previous studies show that ratio between cruise price and cruise passenger expenses for port dues is from 1:3 to 1:4, meaning that total passenger cost contains cost of cruise trip and port dues. Port dues vary at ports and destinations therefore the decision of a cruise company to visit a specific destination is also influenced by port dues. Accordingly, subject of our study are port dues as an element of cruise port or destination competitiveness. Purpose of this study is to promote research of cruise passenger port dues expenses which has not been studied in the past. Simultaneously, our goal is to evaluate port dues in correlation with attractiveness of cruise destination. Logical hypothesis set up on the basis of aforesaid, is that any increase of port dues directly affecting cruise passenger expenses has substantial influence on selection of cruise destination. Our study will show whether or not, how and to which extent the port dues influence port competitiveness.
Antun Asic, Tihomir Lukovic

Chapter 6. Cruise Tourism in Northeast Asia

Northeast Asia consisting of China, Japan, and South Korea has recently shown a phenomenal growth in the cruise industry. Chinese demand for cruising has been increasing significantly and South Korea has strengthened its position as a ‘must-visit’ destination while the Japanese cruise industry is ready to welcome another period of prosperity. Yet cruise tourism in this region remains untapped. This paper aims to shed light on the current scenario in the industry by reviewing the past and outlining the existing situation in the core markets. The paper, thus, is the starting point for insights into the region and provides the foundation for further research. Both an extensive literature review and interviews on experts were performed to fulfil the purpose of the research.
Hyunju Lee

Chapter 7. Information-Knowledge-Experience: Heraklion Port Case Study

What tourists expect when visiting a destination is to obtain memorable experiences accompanied by domestic goods and services. In this context, destinations are positioned as “experiences” while tourist motivations and experiences are as diverse as the characteristics of the destinations. In the case of cruise tourism the term “destination” can receive multiple interpretations, since apart from the ports of calls included in an itinerary, the cruise ship is also perceived as destination. In touristic literature, the study of motivations and experiences of visitors is extended, whistle studies related to onshore experiences and behavior patterns of cruise passengers are limited and existed research focuses mostly in the well established destinations. The aim of this paper is to investigate the reengineering process followed by a well known cruise destination, Heraklion. Key elements are studied regarding changes in infrastructure, introduction of services, storytelling and information technology applications. Customer-satisfaction is accessed to correlate the level of passenger’s satisfaction, with port’s strategic goals.
Maria Lekakou, Evangelia Stefanidaki, Ioannis Bras, Dimitris Vintzilaios

Chapter 8. Vacation Promises in the Visual Language of Cruise Catalogues

The text presents an approach to cruise research from a designerly perspective, consisting of the documentation of a small research project regarding the visual language of cruise catalogues, and, building on these analytical findings, the presentation of design-driven research strategies. The purpose of this contribution is twofold: first it serves as a means—mainly for the authors—to gain a general overview of a new field of inquiry. Secondly, it intends to demonstrate the still unrecognized potential of design thinking and designerly strategies to the cruise research community and the cruise industry. Thus the text cannot be regarded as a fully developed empirical study, but rather as a programmatic framework for design research in the cruise field. If it sounds normative or even slightly polemical in parts—this is intended. Design is a normative endeavour, aiming at “transferring existing situations into preferred ones”, as Nobel laureate Herbert Simon stated.
Wolfgang Jonas, Carolin Kowollik

Chapter 9. Quantifying Aesthetic Preferences in Cruise Ship Exterior Design

The study of the aesthetic preference in the industrial field has been conducted regarding the qualitative expression with special focus on colour and shape. This research focuses on quantifying the aesthetic preference of people. Especially, the exterior design of cruise ship is the target of this study. The competitiveness of the items can be generally managed by the preference of people. The quantification of the aesthetic preference of people can make it possible that not only the aesthetic analysis but the industrial one can have an effect on the competitiveness in the market. The target for this study is to find criteria affecting the aesthetic preference of people about the exterior design of cruise ships. Therefore the method of quantifying the qualitative aesthetic preference with Fuzzy Modelling is applied. The results of this study can be used in cruise ship design considering the aesthetic preference of people as a guideline.
Jung-Hwa Jo, Wolfgang Jonas

Chapter 10. On-Board Cultures of Cruise Ships and Cruise Product Development

Cruise ships are carriers of clearly defined, yet usually not explicitly addressed on-board cultures, which are mostly in dramatic contrast to the everyday culture of the destinations. Often the destination culture hardly matters on board, except for a few presentations of excursions. With the background of design research, the study explores the question of how to bridge the gaps between the designed artificial culture on board and the everyday culture of the destination. The research question focuses on identifying those factors influencing the cruise ship system, which have a potential for change in terms of cultural encounters. The study consists of three main parts: First, relevant actors in the cruise ship system have been synthesized into a theoretical model. Using a holistic approach, not only people were defined as actors, but also objects and organizational forms. Second, the design research method “cultural probes” and qualitative interviews were used in an empirical study. The statements of the participating passengers served as the basis for the description of the holiday cultures on board, as well as for describing the relationship to the everyday culture of the destination. Through redesigning the identified fields, the perception of cultures and cultural encounters can be influenced. Third, these findings from theory and practice were brought together in a “map of socio-cultural relations”. From this map, descriptors were developed that support the description of a cultural identity of a cruise and expand the imagination of possibilities for future cruises, so that cruise companies can differentiate their offers from competitors.
Carolin Kowollik, Wolfgang Jonas

Chapter 11. Cruise Customer Loyalty Improvement with Social Media

Social media become more and more important due to growing Internet usage, enhancements of information systems, and more and more spreading of smartphones. Social media offer various opportunities and chances for cruise operators like advertising, distribution, public relations, human resources management and customer loyalty. To enable and enhance customer loyalty, it is important to be competitive: cruise operators save money in advertising, target focus groups, are interactive and respond to needs of customers directly. For cruise operators it is important to know which social media are available, what kind of advantages and disadvantages exist, how they can use social media to enable and enhance customer loyalty and which social media correspond best to a cruise operator’s goals. A decision must be made between moderated and unmoderated social media. Our research is based on a literature review, an Internet search and an illustrative case study with two cruise operators. It shows that Royal Caribbean International (RCI) and AIDA Cruises (AIDA) already use many different social media such as You Tube (YT), Facebook (FB), HolidayCheck (HC), Cruise Critic (CC) and also their web pages. Both cruise operators are well present on FB: but, RCI still has to improve its involvement. Furthermore, our research shows that it is necessary for both cruise operators to follow long-term social media strategies and to measure success quantitatively and qualitatively. They have to consider critical success factors of social media like authenticity, personalization, openness, honesty and transparency for their long-term social media strategies. Moderation of social media is essential to supervise and “control” content, to answer questions seriously and to interact with consumers timely.
Imke Heinze, Nadine Guhr, Michael H. Breitner

Chapter 12. Creating Loyal Customers: Three Generations of Cruise Travellers

This research takes an auto-ethnographical approach to the investigation of the needs, satisfactions and loyalties of cruise travellers. Through the narrative of three generation of cruise traveller the notion of loyal and disloyal regular cruise travelling is explored as is the idea of satisfaction and dissatisfaction of the first time cruise traveller (Petrick and Sirakaya, Annals of Tourism Research, 31(2), 472–475, 2004). It finds that the industry is attracting differentiated first time cruisers through its supply chain which may affect satisfaction; those who have a fully informed experience appear to be more loyal but price may impact on future purchase. The lack of satisfaction engendered by the operational management of the consumer experience, for instance meal service and intrusion of cabin space by untimely noise, could easily be avoided thus enhancing the consumer experience and creating loyalty to the industry and brand. There is no doubt the longevity of relationships and enhanced customer relationship management (CRM) have enhanced the brand loyalty of some cruise passengers; the use of bespoke CRM could undoubtedly be used to create loyalty in less engaged users.
Caroline Ann Wiscombe

Chapter 13. Cruise Passengers’ Willingness to Pay for Sustainable Cruises

Environmental protection and sustainably operating cruise vessels imply increasing costs for the cruise industry. Within the competitive context of cruise tourism, compliance with modern sustainability standards partially depends on the guests’ sensitivity towards those issues and their corresponding willingness to adapt their consumption principles and behaviour. Using contingent valuation and an extended version of the Theory of Planned Behaviour, this study compares German cruise passengers’ willingness to pay for a conventional and a sustainable cruise as well as determinants influencing it. Estimation of the model with ordinary least squares exhibits that apart from attitude towards willingness to pay and perceived behavioural control especially income and reference prices paid in the past have a positive impact on willingness to pay whereas price/value orientation has a negative influence on it. Regarding willingness to pay for a sustainable cruise, moral norm is identified as major driver for behavioural intentions. A t-test for independent samples reveals no significant increase in willingness to pay for sustainable cruises but nonetheless suggests that this matter should be looked into more closely with a larger sample.
Lena Mantel, Alexis Papathanassis

Human Capital: Training, Education & Research

Chapter 14. Who Should Pay for Higher Education in Cruise Management?

This paper addresses the contested issue of sharing the costs of higher education between students and the public. Based on a theoretical economic model, determinants of optimal instruction cost sharing between student and taxpayer are identified and discussed, especially in view of higher education in cruise management. It turns out that the optimal cost share to be absorbed by the student equals the ratio of the student’s private benefit and the government’s (but not necessarily the public’s) benefit of the student’s higher education. If the government’s interest is purely budgetary, then a higher education preparing students only to be ‘employable’ by the cruise industry does not justify the use of taxpayer money. If, on the other hand, the government aims to maximise social welfare, taking non-economic benefits into account, some public funding may be optimal. Either way, the optimal public subsidy increases with the extent to which cruise management study programmes convey a sense of responsibility towards the public interest and qualify and motivate their graduates to work also outside the cruise industry.
Michael P. Vogel

Chapter 15. The Future of Student Work Placements at Sea

The combination of Higher Education (HE), student work placements (SWP) and the cruise industry is a relatively new area in terms of research. Whilst degree level student work placements within the hospitality industry have existed for many years, and are therefore subject to scrutiny and academic examination, there are only a relatively small number of universities delivering hospitality or tourism subjects providing students with the opportunity to work at sea as part of their course. An example of this opportunity is exemplified by a relationship formed between Plymouth University and a major cruise company to develop a cadetship programme for students enrolled on the cruise management programme. In 2011, a decision was taken by the cruise company to suspend the SWP scheme despite positive feedback from students, the University and from within the company itself. This paper, based on case study analysis, examines the issues that are relevant to the provision of work placements at sea. The research project involved undertaking in-depth analysis of the cruise company’s cadetship programme by a team of student researchers. The findings provide evidence to all stakeholders about critical issues relating to operating this type of work placement and makes recommendations for developing successful placement schemes, which could be adopted by the cruise industry. The paper further highlights the substantial benefits that exist for cruise companies by engaging in and developing work placements in co-operation with key partners.
Luke Slater, Philip Gibson

Chapter 16. Quantitative Analyses in Cruise Tourism Studies

This paper investigates the analytical methods that are used in 125 quantitative and empirical cruise tourism studies published from 1984 until and including 2014, as well as the relationship between the applied methods. On average, two different methods were used per study (0.9 bi- or univariate and 1.1 multivariate), but with a slight trend from the former to the latter. During the latest 5-year period, 2010–2014, which comprises almost two thirds or 82 of the identified studies, a regression analysis was used in 39 %, a factor analysis in 27 % and Structural Equation Modeling in as much a 21 % of the studies. The relations between the methods are analysed via correlation and factor analysis, and the results are visualised in a multidimensional scaling (MDS) diagram.
Carl H. Marcussen
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