Hospitality Operations and Trends

7HO733

MA
International Business in Entrepreneurship
Tittle: Navigating Waves of Change: Trends and
Challenges in Cruise Ship Operational Management

Student Number: 100724957

Word Count: 1881

Submitted on: 22 December 2023

Submitted to: Mr. Yannick Bouyidou

1. Introduction

The cruise ship industry is rapidly increasing and is an important player in the global

tourism market. The cruise ship sector should adapt to current customer patterns and

faces certain challenges. It is necessary to investigate current trends and challenges in

order to support sustainable business performance. Many academics have examined

cruise ships, with a focus on innovative cruise tourism, how they affect the economy

and market, and other relevant themes. It is therefore required to delve more into the

theoretical and applied literature on trends and issues confronting the cruise ship

tourism business in the field of operational management. This research intends to bring

significant knowledge to the field of cruise ship operational management through a

thorough evaluation and analysis.

2. Literature Review

2.1 Cruise Ship

A cruise ship is any fare-paying leisure excursion on a ship whose main objective is the

accommodation of passengers and not freight, typically to visit a range of locations

rather than to operate on a predefined route (Wild and Dearing, 2000, cited in Jiao et al,

2020, p.1). The cruise ship business has developed to become one of the most dynamic

segments of the tourism industry. It is currently acknowledged as an essential

component of the global leisure business (Wondirad, 2019, cited in Lee et al, 2022,

p.3600).

International tourism increased to approximately 963 million yearly arrivals worldwide,

this percentage are more than twice compared with 2021 but still 34% below 2019

percentage (UNWTO, p. 3, 2023). The global tourism business plays a significant role

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in creating employment as well as income globally, impacting the financial systems of

numerous countries. From 2010 to 2030, the industry of tourism is expected to grow by

3.3% annually, with cruise liners playing a major part (Cerveny et al, 2020, p. 1).

According to Wilczynska and Wilczynski (2019, p.1) have proposed that the cruise line

sector of global tourism has had the most rapid development in the current conditions.

In 2021, With 13.9 million people transported annually, the global ocean transportation

market is expected to be valued $23.8 billion in 2021—an increase of 81.8% from 2020

(CLIA, 2023).

2.2 Trends

2.2.1 Environmental Sustainability

The earth's climate has shifted considerably in the past few decades, resulting in

catastrophic and unexpected weather conditions. As a result, there is a tendency toward

living according to so-called "eco-friendly" concepts, or the phrase "eco". This is one

of the components of a word associated with environmental protection (ecology),

including eco-life, eco-food, eco-consumption, eco-leather, eco-tourism, and renewable

energy (eco-energy), among others. As you can see, it is currently used in many aspects

of human life. 'Eco' has become popular and is being pushed by a variety of social and

economic situations. Companies aspire to be perceived as socially and environmentally

responsible. This tendency also affects the cruise tourism (Kizielewic, 2021, pp.2). In

an effort to cut emissions, Norwegian adventure cruise operator Hurtigruten, for

example, announced plans on 8 June 2023 to create a zero-emission electric cruise ship

with retractable sails and coated with solar panels, which will sail in 2030, under the

project name "sea zero” (CNN, 2023).

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2.2.2 Maritim Cruise Fleet Development

Financial concerns, regional stability and security, the economic crisis, increased public

awareness of the preservation of the environment and climate change, and

developments in information and communication technology are all elements that drive

new trends in the tourism industry. Because of these considerations, travels are growing

shorter but more frequent, as passengers increasingly want services that are

personalized to their needs and provide a more 'genuine' travel experience. Aside from

this need, supply considerations play a significant role in producing demand, since

marine tourism services, carriers, and tour operators offer a diverse range of ships and

itineraries. The growth of tourism infrastructure, such as hotels and land transportation

infrastructure, is also driving this trend (Ubanyi-Popioek, 2013 cited in Jastrzbek &

Czermaski, 2019, p.155). Furthermore, this relates to the construction of larger ships.

One feature of current marine tourist development is the increasing size of new ships

being built. Jastrzbek and Czermaski, 2019, p.156). According to US News, the names

of the world's largest cruise ships are listed below:

No Name
1 Royal Caribbean Icon of the Seas Length: 1,198 feet
Width: 213 feet
Gross tons: 250,800
Maximum number of passengers: 7,600
2 Royal Caribbean Utopia of the Length: 1,188 feet
Seas
Width: 211 feet
Gross tons: 236,860
Maximum passengers: 6,788
3 Royal Caribbean Wonder of the Ship Length: 1,188 feet
Seas
Ship Width: 211 feet
Gross tons: 235,600
Maximum passengers: 7,084

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4 Royal Caribbean Symphony of the Length: 1,188 feet
Seas
Width: 215.5 feet
Gross tons: 228,081
Maximum passengers: 6,680
5 Royal Caribbean Harmony of the Length: 1,188 feet
Seas
Width: 215.5 feet
Gross tons: 226,963
Maximum passengers: 6,687
6 Royal Caribbean Oasis of the Seas Length: 1,188 feet
Width: 215.5 feet
Gross tons: 226,963
Maximum passengers: 6,687
7 Royal Caribbean Allure of the Seas Length: 1,187 feet
Width: 215 feet
Gross tons: 225,282
Maximum passengers: 6,826
8 MSC World Europa Length: 1,093 feet
Width: 154 feet
Gross tons: 215,863
Maximum passengers: 6,762
9 Costa Smeralda Length: 1,093 feet
Width: 154 feet
Gross tons: 215,863
Maximum passengers: 6,762
10 Costa Toscana Length: 1,106 feet
Width: 138 feet
Gross tons: 185,000
Maximum passengers: 6,554
11 P&O Cruises Arvia Length: 1,130 feet
Width: 138 feet
Gross tons: 185,000
Maximum passengers: 5,200
12 AIDAcosma Length: 1,106 feet
Width: 138 feet

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 Gross tons: 184,600
Maximum passengers: 6,654
13 P&O Cruises lona Length: 1,129 feet
Width: 138 feet
Gross tons: 184,000
Maximum passengers: 5,200
14 AIDAnova Length: 1,106 feet
Width: 138 feet
Gross tons: 183,900
Maximum passengers: 6,654
15 Carnival Jubilee Length: 1,106 feet
Width: 138 feet
Gross tons: 183,900
Maximum passengers: 6,654
16 Carnival Celebration Length: 1,106 feet
Width: 138 feet
Gross tons: 183,900
Maximum passengers: 6,654
17 MSC Euribia Length: 1,087 feet
Width: 141 feet
Gross tons: 181,541
Maximum passengers: 6,327
18 MSC Virtuosa Length: 1,087 feet
Width: 141 feet
Gross tons: 181,541
Maximum passengers: 6,334

19 Carnival Mardi Gras Length: 1,130 feet

Width: 137 feet
Gross tons: 180,000
Maximum passengers: 6,465
20 MSC Meraviglia Length: 1,036 feet

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 Width: 141 feet
Gross tons: 171,598
Maximum passengers: 5,655
21 Norwegian Encore Length: 1,094 feet
Width: 136 feet
Gross tons: 169,116
Maximum passengers: 3,998 (double
occupancy)
Table 2. List of the Biggest Cruise Ships in the world.

2.3 Challenges

2.3.1 Safety Management - Cruise ship accident

Nowadays, cruise ship accidents are one of the issues that cruise ship tourism industry

faces and are an important topic in marine safety. In the Asian region, for example,

which continues to play an important role in international shipping activities, it was

discovered that 95.8 percent of cruise ship accidents were caused by human mistake,

such as explosions or fires and collisions, after assessing 48 cruise ship incidents. In

contrast, 4.2% was due to inclement weather. And it is widely acknowledged that the

Philippines has the highest number of cruise ship accidents, followed by Indonesia and

Japan (Jiao et al, 2020, p.7-10). Moreover, according to the data attached to

CruiseMapper there were a huge number of cruise ship accidents in the period of 20

December 2022 to 20 December 2023 as follows:

No Types of Accidents Number of Accidents

1 Fire 12 accidents

2. Ship collision or allision 7 accidents

3. Ship groundings 2 Accidents

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 4. Ship listing 1 accident

5. Propulsion/ Powe Loss 15 accidents

6. Sea Pollution 1 accident

7. Structural and Technical Issues 29 accidents

8. Cruise illness/ virus outbreaks 20 accidents

9. Coast Guard Medevacs 25 accidents

10. Boat Rescue 18 accidents

130 accidents

Table 2. Number of Cruise Ship Accidents

It can be seen from table 1 above that there were 130 accidents, of which structural and

technical problems were the most frequent and reached 29 accidents and the least were

ship listing and marine pollution (CruiseMapper, 2023). In order to prevent the cruise

ship accidents caused by human, there are some programs or course provided by SCTW

convention and/or cruise ship companies. SCTW Convention, for instance, it provides

some training such as, Crowd Management, Training in Passenger Safety, Cargo Safety

and Hull Integrity, and Training in Crisis Management and Human Behaviour (Gundic

et al, 2021, p. 416)

2.2.2 Environmental Concern - Water Pollution

The environment is inextricably linked to one of the world's most important industries,

tourism. In other words, when tourism harms the environment, it affects the continued

existence of itself. However, if the environment is maintained appropriately and

environmental elements are respected, it will ensure its own sustainability. Marine

tourism, rural tourism, and ecotourism, in particular, connect closely with the natural

environment. According to data acquired by Gedik and Ertugral, marine tourism such

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as cruise ship tourism, cruise ship operations, recreation, and extreme water sports

correspond to increased environmental strain in the Mediterranean, one of the world's

recognized locations (Gedik and Ertugral, 2019, p.863;865). This is a challenge that

cruise tourism must address and overcome to lessen the detrimental impact of sailing

operations on seawater.

3. Future Research on Emergent Trend

Small luxury cruise ships' design and appeal have been a growing trend in the marine

sector in recent years. These vessels are differentiated by their smaller size in

comparison to traditional cruise ships, allowing clients seeking luxury travel to have a

more intimate and exclusive experience. It is expected that the trend would become

more popular as time passes. The emergence of tiny luxury cruise ships represents a

shift toward more personalized, ecological, and experiential marine excursions as the

travel industry evolves. This trend is appealing to discriminating travelers looking for

a mix of luxury, adventure, and intimacy on the high seas.

(Reddak, 2023).

4. Recommendation

The following recommendations are made for the cruise ship industry in order to

improve operational management and assure long-term commercial performance:

1. Cruise lines should focus and invest in environmentally friendly technologies and

processes in order to reduce the environmental impact of their operations. Campaigns

for zero-emission propulsion systems, energy from renewable sources, and waste

reduction measures should be investigated.

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2. To reduce the danger of accidents, cruise ship businesses should constantly improve

their safety management systems and training programs for their crew members.

Collaboration with international maritime organizations, as well as adherence to SCTW

(Standard of Training Certification and Watchkeeping for Seafarers) convention criteria

for safety training, are critical to maintaining a high degree of safety on cruise ships.

3. Conduct frequent safety audits and inspections on cruise ships to detect and address

potential hazards and dangers. Establishing a proactive safety culture with frequent

checks and reviews can help to prevent accidents and ensure the safety of passengers

and crew.

4. Conduct ongoing research on developing cruise industry trends, such as the increased

popularity of small luxury cruise ships. Anticipate consumer preferences and adjust

company tactics to keep up with changing trends, ensuring that the cruise sector remains

competitive and appealing to a wide range of customers.

5. Conclusion

To sum up, the cruise ship sector must strike a careful balance between expansion and

sustainability, while also addressing issues such as safety and environmental effect.

Embracing rising trends, such as the rise of tiny luxury cruise ships, allows the business

to evolve and meet changing consumer needs. The cruise ship business may prosper in

the volatile global tourism market with proper management and flexibility.

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References:

Cerveny, L.K., Miller, A., Gende, S., (2020) Sustainable tourism in marine world
heritage sites, Sustainability, 12(2), pp. 1-24.

CNN. ( 2023).An electric cruise ship with gigantic solar sails is set to launch in 2030.
[Online]. Available at: https://edition.cnn.com/travel/article/hurtigruten-norway-zero-
emission-cruise-ship-climate-c2e-spc-intl/index.html (Accessed: 20 December 2023).

Cruise Market Watch. (2023) Cruise Market Watch. [Online]. Available at:
https://cruisemarketwatch.com/market-share/ (Accessed: 1 November 2023).

CruiseMapper. 2023. Accident. [Online]. Available at:

https://www.cruisemapper.com/accidents. (Accessed: 20 December 2023).

Gedik, S., & Mugan-Ertugal, S. (2019). The effects of marine tourism on water
pollution, Fresenius Environ, 28(2), pp.863-866.

Gundić, A., Vujičic, S., Maglić L & Grbić, L. (2021) Reducing a human factor in cruise
ships accidents by improving crew competences, International Journal on Marine
Navigation and Safety of Sea Transportation, 15(2), pp. 415-421.

Jastrząbek, A. O., & Czermański E. (2019) Global trends in maritime cruise fleet
development, Scientific Journals of the Maritime University of Szczecin, 60 (132) pp.
154-160.

Jiao, Y., Dulebenets, M.A., & Lau, Y. (2020) Cruise Ship Safety Management in Asian
Regions: Trends and Future Outlook, Sustainability, pp.1-15.

Kizielewic, J. (2021). Eco-trends in energy solutions on cruise ships. Energies, 14, pp.1-
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Lee, S., Ramdeen, C., & Collins, M. (2022) Cruise ship itineraries: an investigation of
the effect of itinerary on cruise pricing, Tourism Culture & Communication, 22, pp.359-
367.

UNWTO. (2023). International Tourism Highlights, 2023 Edition. Available at:

International Tourism Highlights, 2023 Edition – The Impact of COVID-19 on Tourism
(2020–2022) (e-unwto.org)

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US News. (2023) The 21 largest cruise ship in the world. [Online]. Available at:
https://travel.usnews.com/features/the-biggest-cruise-ships-in-the-world (Accessed: 20
December 2023).

Wilczynska, A., Wilczynski, P (2019) Innovative solutions in the ports of the baltic sea
for development of small cruise ship tourism heritage products. Academic Conference
International Limited, Reading.

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