Session Topic 5: Cruise Operations and Management

Learning Objectives:

At the end of the session you will:

o Define the elements of cruising
o Be aware of the safety protocols on-board
o Critically reflect on the image of cruising and consider different types of cruises
o Understand the scale and scope of the cruise market

KEY TERMS

Cruising Ocean Liner

Cruise Market CLIA
Cruise Ship Stateroom

Core Content

Introduction
The world’s oceans cover 70% of the Earth’s surface and travelling across the oceans by
cruise ships is the most preferred mode of transportation. Shipping industry promotes convenience
for both passengers and crew. Cruise Tourism is becoming an increasingly popular ‘leisure choice’
worldwide. The global cruise industry generates an estimated $38 billion a year in passenger
expenditure and is the fastest growing sector of the tourism industry. Cruise tourism has
experienced an important expansion over the past twenty years. Brida and Zapata (2010) reported
an average annual growth rate of 7.4% in the number of worldwide cruise passengers taking cruises
over the period 1990-2008. The participation of the cruise sector in the international number of
tourists corresponds to approximately 2% and revenue of cruise corporations represents about 3%
of the total international tourism receipts (Kester, 2002; Klein, 2005; Dowling, 2006). The World
Tourism Organization stated that international tourist receipts in 2011 was US$1.030 trillion.
International tourist arrivals grew by over 4% in 2011 to 983 million, according to the latest World
Tourism Organization Barometer (UNWTO, 2011). With growth expected to continue in the next
few years at a somewhat slower rate, international tourist arrivals in 2012 reached a historic 1.035
billion globally as emerging economies regained the lead over advanced economies, with Asia and
the Pacific showing the strongest results, (UNWTO, 2013)
The cruise industry has grown and continues to grow enormously in scale. It is frequently
regarded as a small but significant sector of the tourism industry (Page, 2002), but this description
is insufficient in recognizing inherent qualities and attributes that support the claim that cruising
is an industry in its own right. In many respects it is helpful to consider some evidence regarding
this claim within this introduction, but readers will be able to make a more informed judgment
having read the whole book. According to Ward (2001), the cruise industry has a $15 billion
turnover. It employs over 100,000 shipboard officers and crew as well as approximately 15,000
employees ashore. Indirectly, the industry provides employment for food suppliers, engineering
services, manufacturers, port agents and authorities, transport companies, tourist companies,
hotels, destination companies, and car-hire and employment agencies. Ebersold (2004) draws
attention to the growth of the industry in marketing terms, which has seen systematic and sustained
expansion over 7 years, with approximately 64 million bed-days sold in 2002 compared with 35
million bed-days sold in 1997. Construction of new vessels for the industry continues to be strong,
and at the beginning of 2004 there were some 19 new cruise ships under construction, catering to
a total of approximately 48,000 passengers (Bond, 2004). The Cruise Lines International
Association (CLIA, 2005b), an organization that represents 19 of the world’s major cruise
companies, announced that 10.5 million passengers chose to cruise in 2004. The changing
demographic profile of cruising, in terms of the market segment, social status, and age, is
significant (Douglas and Douglas, 2004). One example of these changes is the estimate made by
Carnival Cruises that they would carry some 500,000 children as passengers in 2004: an increase
of 400% over 10 years (Carnival, 2005 The CLIA predicts that cruise fares will increase, that the
age of those cruising will continue to reflect a multigenerational mix, and that all segments of the
cruise market will become even more focused on providing unique products and services (Anon,
2005a).
Cruise Operations Management
o is the process of managing all aspects of transportation operation of cruise lines such as:
cruise ship parts, maintenance, routing, waste management, guest service relations and
communications
o provides a comprehensive and contextualized overview of hospitality services for the
cruise industry. As well as providing a background to the cruise industry, it also looks
deeper into the management issues providing a practical guide for both students and
professionals alike.
Cruise / Cruising
o in maritime definitions means living on a ship or a boat and traveling for extended periods
of time
What is the difference between Cruise ship and Passenger ship?
A cruise ship or cruise liner is a passenger ship used for pleasure voyages, where the voyage itself
and the ship's amenities are part of the experience, as well as the different destinations along the
way.
A passenger ship is a ship whose primary function is to carry passengers. The category does not
include cargo vessels which have accommodations for limited numbers of passengers.

The Cruise market

Tourist cruises are a relatively modern activity, originating in the early 1960s in Miami,
United States of America for cruises throughout the Caribbean. Their development coincided with
a transformation of the transatlantic passenger business resulting from competition with the airline
industry. The cruise line industry has been able to create a new market where none existed before.
Since that time, North American and subsequently global demand for tourist cruises has been
growing at a very strong pace, accounting for robust annual growth over more than 20 years, see
Table 1. The strength of this subsector is reflected in the fact that the largest cruise lines now
occupy the highest ranks of the tourism and leisure sector, as measured by shareholder capital and
annual profits. The Caribbean is the world's largest cruise shipping market, representing over 42%
of the worldwide annual cruise supply (FCCA, 2011).

Table 1 Worldwide Cruise Passengers Market

Year North America Europe Asia & Rest Total Cruise % Growth
of the World
Passengers Worldwide

2000 4,364,470 1,947,780 901,750 7,214,000 22.94%

2002 5,882,000 2,162,500 605,500 8,650,000 19.91%

2004 6,328,300 2,824,200 1,307,500 10,460,000 20.92%

2006 7,263,630 3,241,620 1,500,750 12,006,000 14.78%

2008 9,546,295 4,260,330 1,972,375 15,779,000 31.43%

2010 11,144,705 4,973,670 2,302,625 18,421,000 16.74%

2012 11,616,000 6,284,000 2,160,000 20,060,000 8.90%

2014 12,632,000 6,570,000 2,354,000 21,556,000 7.46%

Source: Cruise Line International Association, Florida Caribbean Cruise Association

Cruise Market Watch

The number of cruise passengers worldwide has been increasing every year but at a slower
pace since the downturn of the economy in 2008. The North American market in particular has
seen much slower growth. Cruise tourism is a capital intensive industry and the strategic
deployment of vessels is driven by the need to maximize yield year round. Augmented by the trend
towards construction of larger vessels for carrying larger numbers of passengers and the imperative
need to derive the economies of scale, it is estimated that at current cost levels, break even requires
load factors of at least 80% and a strong reliance on the revenue from on-board activities, and the
sale of shore excursion products. These trends require cruise lines to establish itineraries that
appeal to a large population base. This is supported by the current strong focus on US market
which accounts for 61% of the total cruise passengers’ worldwide, considerable growth
opportunities exist within the US market because less than 4% of the population has ever taken a
cruise. There are also opportunities for the expansion of the cruise market in Asia, China and India
in particular. Overall, less than 1% of the world population has ever taken a cruise.

Why People Cruise?

o Cruising is a stress – free and hassle free vacation. It takes away trivial matters like driving,
packing and unpacking the luggage. Cruising produces appreciation of the environment
and various cultures among the passengers.

o It provides a new experience to vacationers as this differs from their usual vacation habits.
The experience also gives prestige to individuals.

o Cruises offers different activities inside the ship such as swimming, jogging, shows, and
other recreational activities. Passengers can enjoy the sites of the cities they visit as well as
shop in different ports.

o Cruises facilitate socialization and networking. A cruise provides a brief overview of

historical and learning experiences from one port to another.

o Cruise offers a safe travel experience. Sea vessels ensure guest safety and security.
Anything out of the ordinary is swiftly noted and all means of access to the ship are strictly
controlled. With the new technological advances employed, new forms of inspections are
being done and new safety features are implemented to further bolster the safety and
security of the passengers.

o The cruise package is generally all-inclusive. Passengers already know how much their
vacation will cost. There are no hidden charges as compared to other vacation trips.
CLASSIFICATION OF CRUISE SHIPS

Table 2. Classifications of Cruise Ships

CLIA – CRUISE LINES INTERNATIONAL

ASSOCIATION

O represents vast majority of cruise companies

O makes highly diversified mix of training products and events
O aims to promote and develop the cruise ship industry by abiding with the
Federal Maritime Commission under the Shipping Act of 1984(CLIA,2009)
O 63,000 cruise lines and 13,500 travel agencies representing more than
50,000 individual travel agents plus <120 of the most innovative suppliers
of goods and services to the cruise industry make up CLIA’s Executive
Partner Program.

CRUISE LINE MEMBERS Table 3. Global Cruise Line Members

 Table 4. Regional Cruise Line Members

CRUISE SHIP FACILITIES

1. STATEROOM SPACE – also called a cabin

THREE TYPES OF SHIP STATE ROOM

2. PRIVATE SPACES – are reserved for ship’s personnel. This includes the crew cabins,
cafeteria, gym, and recreational facilities, the bridge where the vessel is controlled, the
galley or kitchen, and the machine areas.

Figure 5.1 Bridge Figure 5.2 Engine Room

 Figure 5.3 Galley Figure 5.4 Crew Cabin

Figure 5.5 Crew Mess Figure 5.6 Crew Bar

Figure 5.7 Laundry, Linen Room, Uniform Room, Storeroom Etc.

3. PUBLIC SPACES – are dedicated to the passengers usage

Reception area – purser’s office is

equivalent to the hotel front desk and
concierge. Shore excursion office or tour
desk is where passengers can inquire about
and book port tours and activities

Figure 5.8 Purser’s Office

Dining Room – is where the
guests’ meals are served

Figure 5.9 Dining Room

Showroom – serves as the ship’s venue for

entertainment and business functions such as
conventions, conferences and meetings

Figure 5.10 Showroom

Pool Area – also has food and beverage

outlets and relaxation areas of the guests

Figure 5.11 Pool Area

Children’s Area – offers babysitting services

to wide range of age groups

Figure 5.12 children’s area

Figure 5.13 gym. Spa & sports facilities

 Figure 5.14 Clinic Figure 5.15 Gift Shop

Figure 5.16 Internet Café Figure 5.17 Casino

FERRIES IN THE PHILIPPINES

O CEBU FERRIES
O MONTENEGRO SHIPPING LINES
O NEGROS NAVIGATION
O SUPER FERRY / 2GO
CHALLENGES ENCOUNTERED BY CRUISE SHIPS
Cruise ships are also floating cities. Everything you could possibly need or want during a vacation
is on the ship: bars, restaurants, Laundromats, gyms, swimming pools, movie theaters and even
medical clinics. To this end, a cruise ship is a very operations-focused business. Each one of these
services has its own set of challenges, and each one contributes to the cruise line’s overall brand
image. What makes cruise ships not so appealing? Despite offering world-class offerings, the
cruise ship industry has experienced some operational challenges that have led to very bad press
in recent years. These problems are explained below:

1. Sanitation
In the past month, more than 200 passengers on two separate cruises were infected with
the norovirus. In 2014, more than 600 people on a Royal Caribbean cruise had the same illness.
The New York Times reported on a norovirus study published in Clinical Infectious Diseases in
2009. In this study, examiners marked more than 8,300 objects in cruise ship bathrooms with a
substance only visible under ultraviolet light. Then, they returned the next day to see if the objects
had been cleaned. Only 37 percent were. It gets worse. Three of the ships studied had baby-
changing tables that weren’t cleaned at all in a three-year period.
2. Maintenance
There’s no denying that 2013 was the year from hell for Carnival. In February 2013, the
Triumph vessel caught fire and was stranded at sea for five days while sewage dripped from walls.
Barely a month after that incident, Legend experienced engine problems; Dream had a malfunction
with its emergency generator and the cruise line had to fly 4,000 passengers home; and Elation
had a problem with its steering system and needed a tugboat back to shore.

Crisis Management is Always Tied to Operations

Cruise ship operations are highly compartmentalized. Not every employee can know how
to do every task. Employees on the hospitality side operations must properly sanitize surfaces and
raise the bar on disease prevention. Similarly, those in the control room need to improve how they
communicate, which was a problem in the Triumph incident. “Carnival may have planned for an
engine fire, power outage and disabled ship, but they perhaps did not account for the sewage,
ventilation and food issues they experienced,” risk management expert Dov Gardin wrote in a blog
for Risk Management Monitor. He believes Carnival could have handled the situation better had
it used a structured decision-making framework called “Command and Control.”

ENHANCED HEALTH AND SAFETY PROTOCOLS ONBOARD CRUISE SHIPS

If you're wondering when you can cruise again, it might be sooner than you think. As the
coronavirus winds down and cruise ships work toward resuming sailings, they're tackling rigorous
new safety and sanitation protocols to protect passengers and crew from future outbreaks onboard.
The Centers for Disease Control and Prevention’s (CDC) No Sail Order applies to cruise ships
carrying more than 250 passengers and crew (with an overnight onboard stay and in waters subject
to U.S. jurisdiction)—and it remains in place until July 24, 2020. Impacted cruise lines (which are
most) right now plan to return in August and beyond.

The CDC ban does not, however, apply to United States-flagged small-ship companies,
such as American Cruise Lines, UnCruise Adventures, and American Queen Steamboat Company,
many of whom plan to resume sailing with strict new protocols in late June. While no universal
standards have been released or adopted across the industry at this time, cruise lines receive
guidance from the CDC, World Health Organization (WHO), Cruise Lines International
Association (CLIA), organizations like the European Centre for Disease Prevention and Control
(ECDC), and even private consultants. “We’ve partnered with Ochsner Health to help us manage
our enhanced policies and procedures,” says John Waggoner, founder and CEO of the U.S. river
cruise company American Queen Steamboat Company, which resumes sailing on the Columbia
and Snake rivers July 5. “The partnership includes heightened pre-cruise screening, employee
testing, and monthly recommendations from infectious disease experts.”

As of now, there are slight protocol variations between ocean liners and riverboats. Other
differentiations relate to ship size, style (such as mass market, premium, or luxury), and itineraries.
Big ships carrying thousands of passengers may employ additional or differing strategies. “We are
focused on proceeding cautiously and learning," says Richard Fain, chairman and CEO of Royal
Caribbean Cruises Ltd, which plans to resume operations August 1. “Our protocols will raise the
bar even higher on health, safety, sanitation, and medical care, with guidance from a blue-ribbon
panel of experts that we’ll soon announce,” he says. They'll also evolve when the CDC lifts its ban
with newly established regulations and as understanding of coronavirus and its mitigation
progresses. For now, here's what's happening as cruise ships revise their protocols in the wake of
the coronavirus.

 EXPECT PRE-BOARDING HEALTH SCREENINGS

Before boarding, passengers will undergo mandatory touch-free temperature scans, and
possibly secondary medical screenings by health professionals. Any passenger with symptoms of
illness (and perhaps, who has traveled internationally within 14 days) will be denied boarding.
Luggage will be sanitized before loading. Expect touchless embarkation (crew will maintain
touchless contact throughout voyages), and staggered boarding (same for disembarkation), with
passengers wearing masks in public areas.

Social distancing will be practiced onboard in public spaces, from coffee bars to pool decks.
  LINES WILL CAP PASSENGER NUMBERS

Cruise ships—especially large ocean liners—likely will sail with a reduced passenger count to
better maintain social distancing throughout the ship while passengers and crew are on onboard.

 CREWS WILL ENHANCE CLEANING MEASURES

Expect frequent and in-depth disinfecting in all public areas, with hand sanitizing stations
prominent throughout the ship, particularly in high-traffic areas. Cruise ships could extend
turnaround times between trips to ensure deeper sanitization and disinfection. Some cruise lines,
such as Avalon Waterways, are instituting new cleaning technologies. “Our new electrostatic spray
systems allow us to use the same environmentally friendly cleaners that protect against COVID-
19, in a far more effective way,” says Pam Hoffee, Avalon Waterways managing director.

 BUFFETS ARE ON PAUSE

Passengers must use hand-washing stations or hand sanitizers as they enter restaurants onboard.
It's possible they'll only be able to dine with their traveling companions at assigned tables with
assigned servers. Those servers will serve them items like condiments and bread, or they'll be
presented in single-serve packaging. Passengers will receive single-use paper menus. Ships may
institute multiple seating times, emphasize outdoor dining, or open more venues to minimize the
number of passengers dining at once.

 STATEROOMS WILL ALSO GET NEW SAFEGUARDS

Interactive televisions and digital apps may replace printed daily programs. Throw pillows and
bedspreads could be eliminated, as well as welcome and turndown amenities. Cruise lines will
likely place masks, gloves, multi-purpose disinfecting wipes, and hand sanitizer bottles in
staterooms, and disposable covers could be seen on high-use items, like television remote controls.
Inside cabins, which are interior and do not have windows or balconies, could initially stay
unoccupied on sailings.

 SHORE EXCURSIONS WILL BE TAILORED TO PROTOCOLS AT EACH PORT

When venturing out for tours in each port, expect sanitized coaches, with hand sanitizer stations
at coach doors, and reduced passenger capacity in vehicles. The places you visit likely will be pre-
screened for sanitation and social distancing protocols—and ports may have their own set of rules.
“We’re working closely with our ports and community partners across the country, and tailoring
plans to each region,” says Charles B. Robertson, president and CEO of American Cruise Lines,
which resumes sailing domestically this month. “We want each community we visit to feel
comfortable with our operation, and confident we are responsive to their specific needs.”

International ports’ protocols may differ, too. “We are working closely with our partners in the
destinations we sail through to ensure that all our screening, onboard sanitation procedures, and
excursions will be operated in strict accordance with the most up-to-date recommended guidelines
including, if necessary, operating at reduced capacity levels,” says Rudi Schreiner, president and
co-founder of AmaWaterways.

Hours for public spaces may be reduced to make way for heightened disinfection efforts.

 PUBLIC SPACES WILL CLOSE EARLY FOR DEEP CLEANS

Back on the ship, expect social distancing in common areas, where hours may be reduced for
intensive sanitizing and disinfection. Physical distancing rules might limit how many passengers
exercise simultaneously in fitness centers, where a full-time attendant may be standing by to ensure
hand sanitization, to distribute towels and other amenities, and disinfect equipment between use.
Shared gym equipment, such as mats, might be available only on request, with sanitization between
use. Same goes for shared outdoor equipment, such as bicycles and tennis paddles.

Spas may initially close showers, whirlpools, steam rooms, and saunas. Libraries could initially be
closed, or staffed for book disinfection. Instead, cruise lines will offer reading materials, such as
magazines and newspapers, via digital apps. Passenger count in entertainment venues will be
reduced, with additional performances added as needed to accommodate.

 STAFF WILL BE SPECIALLY TRAINED FOR COVID-19

Crew will comply with physical distancing, and undergo enhanced medical screenings and training
in new protocols and personal protective equipment (PPE). Ships may expand their medical centers
and number of medical professionals onboard, who can administer COVID-19 tests, initiate
treatment, and place passengers into isolation staterooms before arranging transfers to medical
facilities ashore. Medical personnel may conduct additional temperature checks before and after
port visits, and extend coronavirus testing on cruise ships during sails.

HIERARCHY ON A CRUISE SHIPS

Let’s take a closer look at the hierarchy of employees onboard a cruise ship:
CREW
Crew members on a cruise ship are service employees who work under the direction of a Manager
or other supervising staff. Crew members may or may not have direct contact with passengers.
These positions include:
o Waiters
o Bus boys
o Chefs
o Cabin stewards
o Bar staff
And those involve in trades such as:
o Carpenters
o Electricians
o Plumbers
Crew members generally work long hours (10 to 12), with little, if any, time off during their
contract, and are sometimes unfortunately treated with a lack of respect by other employees
onboard a ship. Crew members usually have their own crew facilities like an internet cafe and a
crew disco but it’s not likely to find any staff members in attendance.
Crew members are strictly forbidden to socialize with any passengers onboard a ship; they are also
not allowed to utilize any public elevators and stairways unless they are working at that time. If a
crew member works directly with the passengers onboard, they will be eligible to receive tips in
addition to their wages provided. Crew members sleep 4 to 6 in a somewhat cramped specially
designed crew cabin.
STAFF
Staff employees on a cruise ship generally consist of upper level positions in the following
departments:
o Cruise directors and assistants
o Shore excursion employees
o Entertainment employees including musicians, dancers, and DJs
o Retail employees including those from the photography, art, and casino departments
o Spa & Salon employees
Most staff employees will have direct contact with cruise passengers with the exception of some
entertainment employees. Generally, staff work shorter hours, receive time off while in port, and
have more access to onboard facilities; depending upon the cruise line, staff may be allowed to
utilize public elevators and stairways and may also be allowed to mingle with passengers. Staff
usually share a cabin with one other staff member.
OFFICERS
Officers are the elite group of employees on a cruise ship who oversee the nautical and mechanical
aspects of the ship, ensuring the safety of the passengers and crew at all times. They are highly
trained and report directly to the ship’s Captain. And as such, officers have complete authority
over any crew or staff member onboard the ship, plus they also receive the highest wages paid to
any employees. As a rule, an officer has the privilege of having a private stateroom.
 Figure 5.18 Organizational Chart in Cruise Ships

TEAM BASED CRUISE SHIP OPERATIONS

Traditionally ship’s bridges have been characterized by strong hierarchical organizations.

The Captain’s arrival on the bridge would almost always mean their taking over the conning of the
ship. That would also mean that all important decisions on heading and speed were based upon a
plan which resided solely within the Captain’s head. This environment had the effect of making
the other Bridge Officers passive bystanders, and turning a team effort into a solo operation. Over
the last three decades we have experienced a number of high profile accidents where one of the
main contributing factors stems from this type of working environment.
In the early 1990’s the industry saw the introduction of Bridge Resource Management
(BRM) as a solution to stop accidents caused by single point failures, but unfortunately, this has
not been entirely effective. The BRM courses focused a lot of attention on developing
assertiveness, encouraging Officers to speak up when a senior Officer deviated from the plan. It is
easy to discuss assertiveness in a classroom, and train it in a simulator environment, but it is very
hard to implement in real life - unless the Captain is proactively implementing a working
environment where speaking up is not only accepted but encouraged.
Even with a culture of challenge well established in an operational environment, there is
another problem. If a junior Officer does not know what the operational limits of a route or berthing
plan are, it’s difficult to challenge their execution. The trigger for a challenge should be based
upon a perception that the person with the Conn has deviated either from the plan, or from the
agreed limits of that plan. Therefore, there must be an agreed and mutually understood Voyage
Plan from berth to berth where navigational and speed limits are displayed and highlighted during
briefings.
All sectors of the maritime industry face challenges. These challenges tend to be unique
for the companies and vessels involved. In Carnival Corporation we have realized that the BRM
course alone is not sufficient for us to improve safety to the required level. Given the demands of
operating a large cruise ship in confined waters, we can no longer be dependent upon the talent of
a single individual no matter how skilled that individual may be. Finally, there is also a need to
effectively and seamlessly integrate visual and instrumental navigation techniques by actively
monitoring bridge equipment and sensors. All of these challenges require that everyone on the
bridge must work as a coordinated team.
However, for very good reasons it remains vital that only one person is physically giving
the orders and executing the plan – so that one person must be both effectively supported, and
effectively challenged, by the rest of the team. The means we have identified to provide this
support and increase the probability of challenge was to move the Captain from active conning to
a monitoring and leadership role.

HOW DO YOU MEASURE THE SIZE OF A SHIP?

Ships can be described by referring to capacity, dimensions or tonnage. Capacity A cruise

ship’s capacity is expressed in terms of the total numbers of officers, crew and customers. Cruise
companies frequently plan using lower berth capacity (referring to the number of beds in a cabin),
implying that capacity for some ships could be increased if capacity included upper berths (some
cabins can have bunk-beds or two tier bedding arrangements). Dimensions The length is measured
from the bows or forward end (fore) to the stern or after end (aft)−− fore and aft are commonly
used terms. The beam is the width at the widest point (amidships). The draft or draught of a ship
measures the depth of a ship as the vessel sits in the water. Tonnage Ships tend to be described
and compared in terms of gross registered tonnage (GRT). According to Branch (1996). GRT is
calculated by dividing the volume in cubic feet of a vessel’s closed-in spaces by 100. A vessel ton
is100ft³. Tonnage is frequently made use of by port authorities when calculating charges when a
ship requires a pilot and for harbor fees. The word ‘tonnage’ is derived from ‘tun’ a medieval term
meaning barrel. Speed Speed is measured in knots. 1 Knot equates to 1 nautical mile per hour. A
nautical mile is the equivalent to 1,852 meters or 1.15 land miles.

OTHER BASIC TERMINOLOGIES

o Cruise: A vacation involving a voyage by sea, on a lake, or on a river.

o Destination: Point of arrival for a traveler or tourist.
o Galley: Name for a kitchen at sea.
o GRT—Gross Registered Tonnage: Relates to the size of the ship.
o Keel: Lowest point of a ship’s structure. This is often a beam (or plates)
that extends from one end of the Ship to the other and forms the shape of the underside of
the vessel.
o Line voyage: Origin of the term “liner,” indicating the line travelled in a journey
between two specific points such as Southampton to New York.
o Port agent: A professional individual or company offering local management
services in ports of call for visiting vessels.
o Refit: Updating of a ship’s technical equipment, changes to the external or
internal appearance or replacement of worn out furnishings and fittings. This is often
undertaken in a dry dock facility, where the ship can be fully inspected and repairs made,
if necessary.
o Tug: A high-powered workhorse of a ship used to tow vessels.
Diary Note…
Achieving a management position on a cruise ship typically involves
hospitality training and prior experience (earned on land or at sea) in a
specialized area. Although job titles and descriptions may vary, examples
of cruise ship management jobs available include Hotel managers who control all areas of
the ship's hotel...

Session Summary

The cruise industry is both potent and portentous. In many ways the industry reflects
strengths that have emerged as a result of the relentless growth connected with globalization.
Powerful corporations exist within the industry, and they have the resources to keep pace with the
constant demands that are required when investing in new ships. Countries that benefit from
globalization become wealthier, and as a result large swathes of their populations are better able
to purchase cruise vacations. Increasingly, sustained growth means there is greater of confidence
and that in turn there is increased innovation in developing cruise products. Demand coupled with
positive publicity appears to create greater demand as the potential cruising population develops
more of a taste for this type of vacation. The industry also benefits from repeat business and a high
degree of customer loyalty.
Cruise ships are large passenger ships used mainly for vacationing. Unlike ocean liners,
which are used for transport, they typically embark on round-trip voyages to various ports-of-
call, where passengers may go on tours known as "shore excursions". On "cruises to nowhere" or
"nowhere voyages", cruise ships make two- to three-night round trips without visiting any ports
of call.
Modern cruise ships, while sacrificing some qualities of seaworthiness, have added
amenities to cater to water tourists, with recent vessels being described as "balcony-laden
floating condominiums".
As of December 2018, there are 314 cruise ships operating worldwide, with a combined
capacity of 537,000 passengers. Cruising has become a major part of the tourism industry, with
an estimated market of $29.4 billion per year, and over 19 million passengers carried worldwide
annually as of 2011. The industry's rapid growth has seen nine or more newly built ships catering
to a North American clientele added every year since 2001, as well as others
servicing European clientele.
As of 2020, the world's largest passenger ship is Royal Caribbean's Symphony of the Seas
REFERENCES:

Brida, J. G., & Zapata A. S. (2010). Cruise Tourism: Economic, Socio-Cultural and Environmental
Impacts, International Journal of Leisure and Tourism Marketing, 1 (3), 205–226.

Cruise Lines International Association. (2008) Cruise market profile study. Cruise Lines
International Association. Retrieved from http://www2.cruising.org/press/research/index.cfm

Dowling, R. K. (2006). Cruise Ship Tourism. London: ABI Publishing.

Kester, J.G.C. (2002). ‘Cruise tourism’, Tourism Economics, Vol. 9, No 3, pp 337–350.

Keynote (2008). Cruise market. Key Note Limited.

Klein, R. (2005). Cruise Ship Squeeze: The New Pirates of the Seven Seas. Canada: New Society
Publisher.

Lester, J., & Weeden, C. (2004). Stakeholders, the natural environment and the future of Caribbean
cruise tourism. International Journal of Tourism Research, 6, 39-50.

WEB REFERENCES:
American Association of Port Authorities: http://www.aapa-ports.org

Caribbean Tourism Organization: http://www.onecaribbean.org

Cruise Market Watch: http://www.cruisemarketwatch.com

Florida Caribbean Cruise Association: http://www.f-cca.com

CLIA—Cruise Line International Association: http://www.cruising.org/ ICCL—International

Council of Cruise Liners: http://www.iccl.org/whoweare/index.cfm IMO—The International

Maritime Organization: http://www.imo.org/index.htm PSA—Passenger Shipping Association

(UK): http://www.the-psa.co.uk/
Name: ___________________________________________Score: ____________________
Section: __________________________________________Date: _____________________
Activity 5.1
Identify the following cruise based on their logo:
Name: ___________________________________________Score: ____________________
Section: __________________________________________Date: _____________________
Activity 5.2
Test of Understanding

1. What are some misperceptions people have about working on cruise ships?

2. Are there any common traits people should have in order to get hired, and then succeed in
the cruise industry?

3. Latest issues in marine pollution (MARPOL)

4. What are the safety and security measures that is being implemented in the cruise
industry?

5. What are the types of challenges that a newly hired employee face while working on a
cruise ship?
Name: ___________________________________________Score: ____________________
Section: __________________________________________Date: _____________________
Activity 5.3
Case Study
Vince, Senior Assistant Purser Accounts

Vince is a hotel management graduate from Italy. He started his employment career with the
company as a JAP five years ago and has found opportunities for promotion to be very good. He
attributes this to the exceptional growth that the industry has experienced, coupled with the trend
to construct large ships. He describes operations on board these vessels as dynamic and he
identifies the challenge faced by contemporary cruise companies to source and retain the right
staff. His position as an onboard accounts manager means he works closely with a number of
senior personnel, including the SAP front office, the crew SAP, the staff first purser
(administration) and the department managers for all revenue areas. On smaller ships the roles of
accounts manager and SAP front office are merged. He works in a large office, which is dominated
by a impressive safe that contains currencies that may be required on the voyage. The ship is
virtually cash-free because the majority of guests pay their folios or accounts by credit card, so the
amount of money on board is considerably lower than would otherwise be the case. Cash in the
form of banknotes is used to pay the crew (US dollars) and to stock currency transaction machines
(actual currencies will depend on the itinerary). He has at his disposal a note counter and a coin
counter, which he shares with casino staff. His routines include managing the shipboard accounts;
checking that guest folios are updated; posting or recording figures relating to all sales on board
(guests and crew); reconciling the various financial records to balance the cruise; allocating floats
for reception staff and any other cashiers who require a float; allocating cash for payment of crew
wages; and allocating gratuities. He works with a shore-based accountant who has the
responsibility of monitoring and checking the financial health of the vessel, cruise by cruise, and
follows standard procedures using standardized documentation. He is also responsible for the
various currencies that are carried on board and for preparing and managing the automatic change
machines. The busiest day tends to be when the ship returns to the home port. Vince gets up at
0330 for a start time of 0430. He has to prepare all figures to ‘close the cruise’. This term is used
to identify that point when all transactions and records relating to the cruise are completed and the
records are sent to head office. That morning final bills go to guests (guests can check folios half
way through so there is no shock). At 0600, guests start disembarkation. Vince notes that the office
can get hectic for the next hour or more as guests visit the purser’s desk to query their folios.
Guests leave by 1000 and this creates a two-hour window when Vince completes the cruise closure
routines and prepares to open the records for the next cruise by 1200.

While relatively rare, mistakes can happen. A sale may have been miscoded or allocated to the
wrong guest account. There can be computer errors, but there is a technician on board who can
rectify that if called upon. Despite the large number of guests on board, there may be 15–20
mistakes. Any error changes the cruise account and these must be handled with care. Refunds on
errors are approved by senior staff and corroborated by the departmental manager who is
responsible for the transaction. Vince takes the view that if a mistake cannot be found, the issue
can become embarrassingly public, so it is, for him, a matter of pride to be accurate and timely.
Vince aims to prepare a document box that contains all accounting paperwork. This is sent to head
office. During the day, cash may be offloaded using a contracted arrangement with a security firm.
Money may also be ordered and delivered using the same method. The itinerary will determine the
types of currencies that are to be carried on board. The company provides a currency exchange
service using automated machines. Some revenue may be generated in selling and buying back
notes, but the provision is primarily intended to be a service. During this stage of the day, Vince
will balance his float. His experience has shown him that discrepancies can arise when closing the
cruise because a number of individuals can input data onto the accounting software. This can
sometimes lead to a data input error and as a result, Vince has to trace the source of any imbalance.
Fraud is not a serious issue: credit cards are checked, cashiers are trained to identify forged notes
and the system of using credit cards raises onboard security. JAPs are meant to have cash handling
training prior to appointment, but some training is done on board and all receive training prior to
joining. Usually between eight and ten appointees spend two weeks on board a ship going through
theory, policy and product training prior to joining their first ship. Vince states that it is important
for JAPs to possess as much knowledge as possible about the itinerary, and practical matters such
as the currency ashore and the products on board.

Vince does not feel isolated in his job, as there is a lot of interaction. He emails head office
frequently, and he gives revenue managers the figures to show patterns and trends. For every cruise
there is a revenue meeting to check targets relating to what is known as guest berthing daily spend.
Vince finishes his day in the afternoon prior to departure at around 1500 or 1600. The new cruise
is ready, accounting systems are prepared and floats are allocated to all cashiers. It has been a long
day, but he is satisfied to have sent his documentation to head office on time and in the correct
state of accuracy.

Case study questions:

1. What are the advantages and disadvantages of having a virtually cash-free ship?

2. Why is it important to ‘close the cruise accounts’ by 1200 on the day of disembarkation?