The business and management of ocean cruises

292 Pages·2012·2.929 MB·English

by  Michael Vogel, Alexis Papathanassis, Ben Wolber

THE BUSINESS AND
MANAGEMENT OF
OCEAN CRUISES
Edited by
Michael Vogel
Alexis Papathanassis
and Ben Wolber
The Business and Management
of Ocean Cruises
MIX
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The Business and Management
of Ocean Cruises
Edited by
Michael Vogel
Bremerhaven University of Applied Sciences
Alexis Papathanassis
Bremerhaven University of Applied Sciences
Ben Wolber
Prestige Cruise Holdings, Inc.
0 bi
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A catalogue record for this book is available from the British Library,
London, UK.
Library of Congress Cataloging-in-Publication Data
The business and management of ocean cruises / edited by Michael Vogel,
Alexis Papathanassis, Ben Wolber.
p. cm.
Includes bibliographical references and index.
ISBN 978-1-84593-845-1 (alk. paper)
1. Ocean travel--Management. 2. Cruise lines--Management. 3. Cruise
lines--Economic aspects. I. Vogel, Michael. II. Papathanassis, Alexis.
III. Wolber, Ben.
G550.B865 2012
387.5'42068--dc23
2011028632
ISBN-13: 978 1 84593 845 1
Commissioning editor: Claire Parfitt
Production editor: Simon Hill
Typeset by AMA Dataset, Preston
Printed and bound in the UK by MPG Books Ltd
Contents
About the Authors vii
Preface xii
Part I: The Cruise Industry
1 The Demand for Ocean Cruises - Three Perspectives 3
Michael Vogel and Cristina Oschmann
2 Development of the Cruise Industry Structure - the Supply Side 19
Boris lav Bjelicic
3 Regulatory Frameworks of the Cruise Industry 30
Cordula Boy and Sarah Neumann
4 Impacts of Cruising 46
Edward W. Manning
Part II: Cruise Line Corporate Management
5 Cruise Line Strategies for Keeping Afloat 63
Sven Gross and Michael Luck
6 Core Cruise Operator Processes and Systems: Overview and Challenges 77
Alexis Papathanassis
7 Cruise Lines' Purchasing and Logistics Management 90
Simon Veronneau and Jacques Roy
8 Human Resource Management in the Cruise Industry 101
Philip Gibson and Celia Walters
vi Contents
Part III: Cruise Line Marketing Management
9 Marketing Communications in the Cruise Industry 117
Robert Kwortnik and Joe Rand
10 Pricing and Revenue Management for Cruises 131
Michael Vogel
11 Cruise Packages 145
Grenville Cartledge
Part IV: Cruise Product Management
12 Cruise Product Development 157
Steffen Spiegel
13 Itinerary Planning 167
James Henry
14 Shore-side Activities 184
Wendy B. London
15 Service Quality and the Cruise Industry 196
Mandy Aggett and Wai Mun Lim
Part V: Cruise Operations Management
16 Hotel Operations Management on Cruise Ships 209
Ben Wolber
17 Food and Beverage Operations 219
Grenville Cartledge
18 Safety and Security Management 231
Sarah Neumann and Andreas Ullrich
19 Cruise Ship Marine Operations 239
Simon Veronneau
Part VI: Cruise Futures
20 Cruise Sector Growth - Prospects, Challenges, Responsibilities 253
Alexis Papathanassis and Michael Vogel
Index 265
About the Authors
Mandy Aggett is a Lecturer in Hospitality Management in the School of Tourism and Hos-
pitality at the University of Plymouth (UK), and also acts as the Placement Coordinator
for Tourism, Hospitality and Events students. She teaches modules in Front Office and
Facilities Management, Managing Service Innovation and Business Management for
Service Operations. Mandy's research interests lie in service operations management,
services marketing and social media marketing, and she is currently working on a PhD,
investigating the impacts of social media on consumer behaviour. Email: mandy.aggett@
plymouth.ac.uk
Dr Boris lav Bjelicic is the Head of Group Corporate Communications of DVB Bank SE in
Frankfurt/M. (Germany). Before joining DVB, he worked for Deutsche Lufthansa, German
Airlines. He studied Business Administration, majoring in Logistics and Transportation
Management, and holds a PhD in Economics. Borislav is Honorary Professor for Business
Administration and Logistics at the University of Mannheim. He has received several
awards for his work, including the Rhenania-Logistics-Award, the Academic Award of
the Stinnes-Foundation, and an Award from the Prechel-Foundation. Email: borislay.
[email protected]
Cordula Boy works for Bernhard Schulte Shipmanagement in Hamburg (Germany). She
holds a BA in Cruise Industry Management from the Bremerhaven University of Applied
Sciences (Germany) and an MSc in Marine Policy from the University of Cardiff (UK).
Cordula gained practical cruise operations experience on board the MV Europa of Hapag-
Lloyd Cruises. Email: [email protected]
Grenville Cartledge is a hospitality professional with well over 20 years' experience of the
cruise industry. After graduating from hotel school in the UK he spent the early part of
his career in the hotel sector. His first General Management appointment came at the age
of 26. He joined Cunard Line as a Hotel Officer on board Queen Elizabeth 2 and worked
his way up to the position of Purser. He has since worked in shore-side operational man-
agement roles for Cunard Line, P&O Cruises, Sun Cruises (MyTravel), Louis Cruises
(Thomson Cruises) and Saga Cruises. In 2010, Grenville set up his own cruise consul-
tancy and support services company in the UK. He has recently been appointed as
Regulatory Consultant to the UK Passenger Shipping Association. Email: gcartledge@
fourgold.co.uk
vii
viii About the Authors
Dr Philip Gibson is Associate Professor and Programme Manager for Hospitality and Cruise
Management at the University of Plymouth (UK). Prior to this, he held various manage-
ment positions in hospitality and tourism organizations, including P&O Cruises and P&O
Ferries, and was the Head of Centre for Tourism at South Devon College in Torquay. He
has a PhD from Exeter University. In 2007 and 2008, he was visiting faculty at the
University of West Indies in Barbados. Philip is the author of the Cruise Operations
Management textbook. He is a Teaching Fellow, a Fellow of the Centre for Excellence in
Professional Placement Learning and a Fellow of the Institute of Hospitality. Email:
P. Gib s on@plymouth. ac.uk
Dr Sven Gross is Professor of Transport Carrier Management and Co-head of the Depart-
ment of Tourism at the Harz University of Applied Sciences in Wernigerode (Germany).
He is also a member of the New Zealand Tourism Research Institute based in Auckland
(New Zealand). Sven studied Tourism Geography and Economics at the University of
Trier and Spatial Planning at the University of Dortmund. Prior to his current position,
he was a Management and Community Consultant and a Research Associate at the
Dresden University of Technology, where he also earned his PhD. His research interests
include tourism and transport, business travel management, as well as tourist market
research. He has authored more than 50 publications on these subjects, including nine
books. Email: [email protected]
Dr James Henry is based at the University of Otago, Dunedin (New Zealand) where he
researches, teaches and consults on business-to-business marketing, channel manage-
ment, logistics and financial aspects of marketing. He holds a PhD from the University of
Otago. James is currently involved in research related to the cruise ship industry. In addi-
tion to this, he is actively involved as a speaker, advisor and mentor for a number of
industry support projects. Previously he held positions in product design, engineering,
business to business marketing and management. Email: [email protected]
Dr Robert Kwortnik is a tenured Associate Professor of Services Marketing in Cornell
University's School of Hotel Administration (USA). Rob's research focuses on consumer
behaviour in service contexts, with special attention to service experience management.
His research has appeared in the Journal of Marketing Research, Journal of Service
Research, International Journal of Research in Marketing, Psychology & Marketing, and the
Cornell Hospitality Quarterly, among others. He has published articles on the cruise indus-
try and is the lead author of a Harvard Business School case on Carnival Cruise Lines. Prior
to his academic career, Rob held a number of professional positions in marketing. Email:
[email protected]
Dr Wai Mun Lim is an Associate Professor and Teaching Fellow at the University of Plym-
outh (UK) and an Associate of the Advanced Institute of Management. She was a tour
operator in Singapore prior to embarking on an academic career. Her research interests are
in the use of information technology, including internet technologies for distribution and
marketing. Wai Mun has consulted for organizations ranging from art design companies
to global chain hotels in the use of Web 1 and 2 technologies. She has published widely
in the area of technology adoption within the tourism industry and has recently won a
grant to investigate the use of technology in small and medium sized hospitality enter-
prises. Email: [email protected]
Wendy R. London is an internationally recognized expert in technology law and the use
of computers in the law. However, in 2006, she decided to pursue her passion - cruis-
ing - and left her first career behind to re-tool for a new one. She completed her Masters
in Tourism at Otago University, Dunedin (New Zealand) and is now a PhD candidate at
Victoria University in Wellington, investigating the dynamics of cruise passenger spend
in New Zealand in the context of power, politics and the role of the ports. Wendy is also
CEO of Cruise Strategy Ltd, which offers a wide range of consultancy services to the
cruise sector, and the creator of CruiseBubble.com, which promotes authentic New
About the Authors ix
Zealand goods and experiences to visiting cruise passengers. Email: wlondon@att-
global.net
Dr Michael Liick is Associate Professor, Head of the Tourism & Events Department in the
School of Hospitality and Tourism, and Associate Director for the coastal and marine
tourism research programme area at the New Zealand Tourism Research Institute, AUT
University in Auckland (New Zealand). He received his PhD from the University of
Otago, Dunedin. Michael has over 10 years of work experience in tourism, and has taught
at universities in Germany, New Zealand, Scotland and Canada. His research interests
include marine tourism, ecotourism, sustainable tourism, the impacts of tourism,
aviation and gay tourism. He has published in various international journals, is founding
Editor-in-chief of the academic journal Tourism in Marine Environments, and associate
editor of the Journal of Ecotourism. Michael has edited or co-edited volumes on ecotour-
ism, marine tourism, polar tourism, and the Encyclopedia of Tourism and Recreation in
Marine Environments. Email: [email protected]
Dr Edward W. (Ted) Manning is President of Tourisk Inc., a Canada-based consulting firm
providing integrated planning for World Heritage sites and tourism destinations, devel-
opment of measures of sustainability and environmental management solutions. He has
worked in more than 50 countries in the creation and implementation of improved
methods for planning environmentally and culturally sensitive areas and reduction of the
ecological and social footprint of human activities, including cruise tourism. Ted is the
lead consultant to the international initiative on indicators of sustainable tourism for the
UN World Tourism Organization, advisor to World Wildlife Fund programmes and inter-
national advisor to the UN Industrial Development Organization. He has published 23
books and over 90 articles on sustainable development and environmental management
topics. He has served as President of the Canadian Association of Geographers, a Director
of the Social Science Federation of Canada and a Governor of the Royal Canadian
Geographical Society. Ted is also Adjunct Research Professor in the Geography Depart-
ment of Carleton University and Chair of the Programme Committee of the Canadian
Association for the Club of Rome. Email: [email protected]
Sarah Neumann is a student of Cruise Industry Management at the Bremerhaven Univer-
sity of Applied Sciences (Germany). Before commencing her studies, she completed an
apprenticeship in tramp shipping and worked for a tanker operator. Within the field of
safety and quality assurance, Sarah gained experience with regard to maritime regula-
tions, contributed to the quality management system and took over responsibilities as
Alternate Company Security Officer. Alongside her studies, she works for a shipping
company in the areas of quality, health, safety and environmental systems. Email: sarah-
neumann85@gmx. de
Cristina Oschmann is a Lecturer in Tourism Management at the Bremerhaven University
of Applied Sciences (Germany), a Research Associate at the Institute for Maritime Tour-
ism in Bremerhaven and a Quality Management Consultant. She holds a graduate degree
in Business Administration and Tourism Management from the University of Luneburg
and an MA in Adult Education from the University of Kaiserslautern. Cristina has
15 years of experience as a tourism professional, working with tour operators, hotel
groups and incoming agencies in different source markets and destinations. Her fields of
expertise include incoming services, product management, marketing and sales, project
and quality management. Her research interests lie in literary and film-induced tourism,
as well as health tourism. Email: [email protected]
Dr Alexis Papathanassis is Professor of Tourism Management and Information Systems at
the Bremerhaven University of Applied Sciences (Germany) and Co-Director of the Insti-
tute for Maritime Tourism in Bremerhaven. He serves as chairman of the Cruise Research
Society, has published in the Annals of Tourism Research, Tourism Management, Inter-
national Journal of Tourism Research and others, and (co-)edited two books on cruise