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THE GEOGRAPHY OF CRUISE SHIPPING: ITINERARIES, CAPACITY DEPLOYMENT AND PORTS OF CALLJean-Paul RodrigueDept. of Global Studies & Geography, Hofstra University, New York, USATheo NotteboomITMMA - University of Antwerp and Antwerp Maritime Academy, Belgium5th Asian Logistics Round Table & ConferenceVancouver, Canada, June 14-15 2012
Ship Happens… Costa Cruises: -25% bookings (May 2011/12)
Once Upon a Time… SS France, 1969
Powered Transatlantic Passenger Modes and the Demise of the Liner
Revenue and Expenses per Average Cruiser, 2011 On-board services: 20-30% of revenues
The Global Cruise Port System 70% A Supply-Based Industry
Full House: Occupancy Level of North American Cruises, 2004-2011
Seven is the Magic Number: Duration of North American Cruises (in nights), 2011 Sweet Spot (47% of all cruises) Bahamas & Western Caribbean from Florida South Pacific
Share of Monthly Cruise Passengers by Region of Embarkation, 2012
Share of Monthly Cruise Passengers by Region of Destination, 2012
Number of Monthly North American Cruise Passengers by Destination, 2011
Market Share of Main Cruise Lines, 2011: Horizontal Integration and the Illusion of Diversity
NETWORK CONFIGURATION AND PORTS OF CALL IN THE CRUISE SHIPPING INDUSTRY
A complex vessel deployment strategySilver Wind (Silversea Cruises), LOA = 157m, beam = 21.5m 296 guests in very luxurious conditions No. of port calls Source: own compilation based on schedules
Selected Cruise Itineraries, Caribbean 3-5 nights / 2-3 port calls Geography History / Culture Market proximity 7 nights / 3-5 port calls
Selected Cruise Itineraries, Mediterranean World class cultural amenities Market proximity Diversified sub-regions
Is the Future Co-Location? Ensenada Cruiseport Village (HPH)
Conclusion: Live by the Supply, Perish by the Supply? • Unique characteristics of the cruise industry: • Supply push strategy of cruise operators; ‘creating’ demand by providing new capacity (ships). • Itineraries, not destinations. Specific regional and cultural experiences offered through a combination of sailing time and choice of ports of call. • Expand and capture revenue streams by offering on board goods and services as well as shore-based excursions. • Adapt to seasonal and fundamental changes in the demand; repositioning ships (seasonal) and changing the configuration of port calls (fundamental).