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The Growing Industry of Cruise Ships: A Comprehensive Tourist Experience

Cruise ships offer a complex package of transportation, accommodation, and leisure facilities. With itineraries visiting multiple destinations, the overall experience is of primary importance. This industry has experienced significant growth, with an average annual passenger growth rate of 7.5% from 1980 to 2012. This article explores the institutional framework, demand, vessel ownership, and the operating model of cruise ships.

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The Growing Industry of Cruise Ships: A Comprehensive Tourist Experience

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  1. Chapter 8 • Cruise Ships

  2. cruise ship: a passenger ship intended to provide passengers with a full tourist experience. All passengers have cabins. Facilities for entertainment aboard are included (Glossary of Transport Statistics, 2009) • cruise product • complex package of transportation, accommodation and leisure facilities on board • itinerary of several destinations to be visited • overall experience is of primary importance • transportation itself plays only a secondary role Cruise Ships

  3. Institutional Framework • IMO = International body responsible for maritime affairs • Treaty - UNCLOS maritime zones • Source : Adapted from The United Nations Convention on the Law of the Sea, 1998

  4. fastest growing segment within the leisure travel market • average annual passenger growth rate: approx. 7.5% • between 1980 and 2012: 225 million passengers Demand International demand (numbers of passengers in millions) Source: Adapted from G.P. Wild, 2012

  5. Vessel ownership Ship owner Financing company Independent shipping company Leasing Management Charter Shipping company Power of disposition Charter, General sales agent, Commission sales agreements Cruise sales Charter, General sales agent, Commission sales agreements Charter Tour operator Broker of the ships Cruise sales Cruise sales Cruise sales Cruise customer Uncommon operating model Common operating model Supply • Source: Adapted from Gross, 2011

  6. Supply • Market shares of the major cruise shipping companies in 2010 (percentage share of berths) • Source: ISL, 2012; ships of 1000 gt and over

  7. Supply • Passenger capacity of world active cruise fleet 1990–2012 • Source: ISL, 2012; ships of 1000 gt and over

  8. Supply • World passenger and cargo passenger fleet: average size development 1991-2012 • Source: ISL, 2012

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