Managing Emerging Markets, Human Resources, Processes and Systems
E-Book, Englisch, 196 Seiten, eBook
ISBN: 978-3-8349-8346-6
Verlag: Betriebswirtschaftlicher Verlag Gabler
Format: PDF
Kopierschutz: Wasserzeichen (»Systemvoraussetzungen)
Prof. Dr. Alexis Papathanassis specializes on Cruise Management and Tourism Information Systems at the Bremerhaven University of Applied Sciences.
Zielgruppe
Research
Autoren/Hrsg.
Weitere Infos & Material
1;1.0 Editor’s Foreword: Cruising through Hercules’ Pillars;6
1.1;1.1 The 1st International Cruise Conference: ‘Crew mess’;6
1.2;1.2 Key themes: ‘The monsters’;6
1.3;1.3 Next steps: ‘Setting the course’;7
2;Table of Contents;9
3;PART A: New trends & innovations;11
3.1;2.0 Onboard Revenue: The secret of the cruise industry’s success?;12
3.1.1;2.1 Introduction;13
3.1.2;2.2 Five stylised facts of cruise line economics;14
3.1.3;2.3 The impact of net onboard revenue;18
3.1.4;2.4 Concluding remarks;23
3.1.5;2.5 References;24
3.2;3.0 Analysis of the Asian cruise industry and its future implementation;25
3.2.1;3.1 Introduction;26
3.2.2;3.2 Tourism in the Asia-Pacific region;26
3.2.3;3.3 Overview of the global cruise industry;27
3.2.4;3.4 Cruise market characteristics of North America and Europe;28
3.2.5;3.5 Economic impact of the cruise industry;29
3.2.6;3.6 Trends of the global cruise market;30
3.2.7;3.7 Prospects for global cruise lines;31
3.2.8;3.8 Analysis of the Asia Pacific cruise market;32
3.2.9;3.9 Conclusions and implementations;35
3.2.10;3.10 References;37
3.3;4.0 Cruising by old timers: A chance for local and regional development in Europe;38
3.3.1;4.1 Introduction;39
3.3.2;4.2 The place of cruising by old timers in the growth of cruising and nautical tourism in Europe;39
3.3.3;4.3 Main characteristics of old timer cruising;42
3.3.4;4.4 Strategic possibilities for development and seasonality;45
3.3.5;4.5 Conclusion;48
3.3.6;4.6 References;49
3.4;5.0 FAT cruise tourism: The shifting tide of experiences;50
3.4.1;5.1 Introduction;51
3.4.2;5.2 ‘FAT’ cruise tourism;51
3.4.3;5.3 A shift towards FAT cruise tourism experiences;52
3.4.4;5.4 Defining experiences;53
3.4.5;5.5 Experiencing cruise ships and products;53
3.4.6;5.6 Cruise culture and cruise experiences;54
3.4.7;5.7 Globeisity – Obesity, a global problem and the potential shift towards the cruise industry;54
3.4.8;5.8 The shift in cruise consumption;55
3.4.9;5.9 Conclusions and recommendations for further research;57
3.4.10;5.10 Future research;57
3.4.11;5.11 References;58
3.5;6.0 The future of medical care on cruise ships;64
3.5.1;6.1 Introduction;65
3.5.2;6.2 Problems of cruise ship medicine;65
3.5.3;6.3 Opportunities of cruise ship medicine;67
3.5.4;6.4 Conclusion;68
4;PART B: Human resource management & training;69
4.1;7.0 Leadership: Short-term, intercultural and performance-oriented;70
4.1.1;7.1 The uniqueness of work in the cruise industry;71
4.1.2;7.2 Social communities aboard;72
4.1.3;7.3 Organisation, processes and traditional culture;74
4.1.4;7.4 Leadership aboard;74
4.1.5;7.5 Situational approach;75
4.1.6;7.6 Sociological models: Goffman, Foucault;75
4.1.7;7.7 Ethnographic research;76
4.1.8;7.8 Business context;76
4.1.9;7.9 Leadership requirements;77
4.1.10;7.10 References;79
4.2;8.0 The future of Filipino workforce in the cruise sector;84
4.2.1;8.1 Introduction;85
4.2.2;8.2 Filipino workforce on the cruise labour market;85
4.2.3;8.3 The interdependence of the cruise labour market and the global market;89
4.2.4;for labour migrants;89
4.2.5;8.4 Culture matters;93
4.2.6;8.5 Conclusion and recommendations;95
4.2.7;8.6 References;97
4.3;9.0 Developments in UK maritime hospitality management;100
4.3.1;9.1 Introduction;101
4.3.2;9.2 Qualifications and maritime management;102
4.3.3;9.3 Developing maritime qualifications;104
4.3.4;9.4 Conclusion;107
4.3.5;9.5 References;108
4.4;10.0 Game-based learning for cruise management: Taking it to the web;117
4.4.1;10.1 Introduction;118
4.4.2;10.2 Experiential learning and educational games;118
4.4.3;10.3 The Cruise Industry Planning Game;120
4.4.4;10.4 From classroom game to web-based application;122
4.4.5;10.5 Place and d time;128
4.4.6;10.6 Open issues and concluding remarks;130
4.4.7;10.7 References;132
5;PART C: Information technology & process standardisation;134
5.1;11.0 Online booking in the cruise sector: Determinants of online trust & implications;135
5.1.1;11.1 Introduction;136
5.1.2;11.2 Theoretical background: Trust & social sciences;137
5.1.3;11.3 Towards a conceptual model: Revisiting online trust;138
5.1.4;11.4 Synthesising online trust dimensions & tourism applications;141
5.1.5;11.5 Final word & recommendations for further research;149
5.1.6;11.6 References;151
5.2;12.0 Price variation across channels: A case of ex-Southampton port cruises;157
5.2.1;12.1 Introduction;158
5.2.2;12.2 Profile of UK cruise industry;158
5.2.3;12.3 Cruise distribution and pricing;159
5.2.4;12.4 Offline cruise channels;161
5.2.5;12.5 Online cruise channels;161
5.2.6;12.6 Aim;162
5.2.7;12.7 Objectives;162
5.2.8;12.8 Research Methodology;162
5.2.9;12.9 Hypotheses;163
5.2.10;12.10 Findings;164
5.2.11;12.11 Conclusion and Limitations;168
5.2.12;12.12 References;170
5.3;13.0 Online content mining & its potential for cruise management;172
5.3.1;13.1 Web 2.0 cruise reviews – An introduction;173
5.3.2;13.2 Technologies for mining and analysis of traveller-generated content;174
5.3.3;13.3 Survey of traveller-generated Web 2.0 content;177
5.3.4;13.4 Economic efficiency and strengths and weaknesses of online content mining technologies;180
5.3.5;13.5 Recommendations for the cruise sector;183
5.3.6;13.6 Conclusions and outlook;184
5.3.7;13.7 References;185
5.4;14.0 Establishing the need for a standardised rating system for cruise ships;187
5.4.1;14.1 Introduction;188
5.4.2;14.2 Review of related literature;188
5.4.3;14.3 Purpose of the study;190
5.4.4;14.4 Methodology;190
5.4.5;14.5 Results;191
5.4.6;14.6 Discussion;194
5.4.7;14.7 References;196
New trends & innovations.- Onboard Revenue: The secret of the cruise industry’s success?.- Analysis of the Asian cruise industry and its future implementation.- Cruising by old timers: A chance for local and regional development in Europe.- FAT cruise tourism: The shifting tide of experiences.- The future of medical care on cruise ships.- Human resource management & training.- Leadership: Short-term, intercultural and performance-oriented.- The future of Filipino workforce in the cruise sector.- Developments in UK maritime hospitality management.- Game-based learning for cruise management: Taking it to the web.- Information technology & process standardisation.- Online booking in the cruise sector: Determinants of online trust & implications.- Price variation across channels: A case of ex-Southampton port cruises.- Online content mining & its potential for cruise management.- Establishing the need for a standardised rating system for cruise ships.
2.1 Introduction (p. 4)
Scale is a central theme of the cruise industry. Excessive scale in the ocean liner business gave rise to the birth of cruising in the 1960s. Air travel had gradually replaced ocean travel, and the ships built for scheduled passenger services were put to other uses, such as leisure cruises. For the cruise lines, the achievement of cost-saving scale effects has always been a major driver of business development and innovation.
The formation of cruise ship fleets in the 1970s brought down the costs of marketing, distribution, personnel, training, purchasing, and administration per unit of available capacity, leading to a decline in ticket prices and a corresponding surge in the demand for cruises. Since the 1980s, scale effects have increasingly been realised at the level of the individual ship. The launch of large purpose-built cruise vessels reduced unit costs even further and made cruising more comfortable and convenient.
Papatheodorou (2006) reminds his readers that for unit cost savings to materialise, the scale of cruise capacity has to be matched by the scale of sales. Therefore, the larger fleets and larger ships were associated with more professional sales management and the implementation of revenue management functions aimed at ensuring the full occupancy of available capacities.
Today, however, the fleets and ships of the world’s leading cruise companies, Carnival Corporation and Royal Caribbean Cruises, have reached such dimensions that unit costs have become practically invariant with respect to scale. Their occupancy rates are consistently very high, even in times of crises. It thus seems that Carnival Corporation and Royal Caribbean Cruises have largely exploited the traditional cost-saving scale effects.
Yet cruise lines do not only generate revenue by selling cruise tickets. They also offer a wide range of additional products and services during the cruise, which are not included in the ticket price and have to be paid extra. Examples include shore excursions, spa, beauty parlour, casino, bars, certain specialty restaurants, photo service, art auctions, communication services, and shops.
According to Klein (2006), bars and casinos are the biggest contributors of onboard revenue on cruise ships carrying U.S. passengers. For European passengers, shore excursions tend to be much more important than casinos. These onboard sales, it seems, give rise to a scale effect which has become more and more important over the past decade or so: larger ships allow generating more onboard sales by offering more space for revenue-generating attractions. This paper examines the role of onboard revenue for the economics of cruise lines from a theoretical perspective.
It focuses on the impact of onboard revenue on the optimal pricing of cruises, on profit, and in particular on optimal cruise capacity, arguing that nowadays, onboard revenue may be the main driver of cruise industry growth. The paper is organised as follows.
Section 2.2 establishes five stylised facts about the economics of cruise lines on the basis of financial data from recent cruise line annual reports. Section 2.3 develops an argument which explains the first three stylised facts using the last two. It looks at competition in the cruise industry off and onboard, and analyses the impact of onboard revenue on the optimal pricing of cruises, on profit, and on optimal capacity levels.
It finds that high-margin onboard revenue is likely to be the main driver of cruise industry growth because it gives the cruise lines the possibility to subsidise ticket prices to make cruises more affordable. Lower ticket prices attract more customers who, once onboard, fuel this process with their spending. Section 2.4 concludes the paper.
2.2 Five stylised facts of cruise line economics
The two leading players of the cruise industry, Carnival Corporation & PLC (Carnival) and Royal Caribbean Cruises Ltd. (RCL), operate fleets which represent 46% and 22% of the global cruise ship capacities in gross tons, respectively (Mäkinen, 2007, p. 5). Their brands do not only dominate their home market in the U.S. but also all other important source markets worldwide (Vogel, 2009). The two cruise companies’ annual reports provide the financial data on which this section is based.
The period covered includes the financial years 2001- 2007. This period has been chosen for pragmatic reasons: before 2001, RCL did not publish ticket and onboard revenues and costs separately, and Carnival’s financial statements are available online only from 2001 onwards.
