THE GEOGRAPHY OF CRUISE SHIPPING: ITINERARIES, CAPACITY DEPLOYMENT AND PORTS OF CALL
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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, BelgiumIAME 2012 ConferenceTaipei, September 6-8 2012


Ship happens
Ship Happens… DEPLOYMENT AND PORTS OF CALL

Costa Concordia disaster

Costa Cruises: -25% bookings (May 2011/12)


Global cruise passengers carried 1990 2011
Global Cruise Passengers Carried, 1990-2011 DEPLOYMENT AND PORTS OF CALL

  • Cruise industry emerged in the late 1960s

  • Mass market using large vessels and adding more revenue-generating services onboard.

  • Symbol of the globalization of the tourism industry (e.g. Weaver, 2005; Wood, 2000).

Recession


Cruise shipping in literature
Cruise DEPLOYMENT AND PORTS OF CALLshipping in literature

  • Cruise shipping in literature:

    • Seasonality of the world cruise market (Charlier and McCalla, 2006)

    • Industrial organization of cruise shipping (Papatheodorou, 2006)

    • Demand for cruise tourism (Petrick and Li, 2006),

    • Supply of cruise shipping (see e.g. Wilkinson, 2006 and Wood, 2000)

    • Economic significance of cruise tourism (Dwyer and Forsyth, 1996; 1998 and Dwyer, Douglas, and Livaic, 2004)

    • Cruise ship passenger spending patterns (Douglas and Douglas, 2004)

    • Operational studies:

      • Optimal routing of cruise ships (see e.g. Hersh and Ladany, 1989)

      • Cruise ship port selection process (Marti, 1990)

      • Optimal cruise-liner passenger cabin pricing policy (Ladany and Arbel, 1991).

    • The service offerings and locational qualities of cruise ports:

      • McCalla(1998): site and situation requirements of cruise ports

      • Vagellasand Pallis (2010): different services provided by 20 European passenger ports

      • Guiand Russo (2011): structure of cruise value chains and the regional articulation of land-based cruise services.

  • Geography of cruise shipping remains an under-researched academic field in maritime and tourism studies.


Focus of paper
Focus of paper DEPLOYMENT AND PORTS OF CALL

  • This paper focuses on capacity deployment and itineraries in two major cruise markets: the Caribbean and the Mediterranean.

  • We argue that:

    • the cruise industry sells itineraries, not destinations, implying a level of flexibility in the selection of ports of call

    • The two cruise markets are interconnected in an operational manner

    • Cruise ports can be classified based on the role they serve within their regions.


The three fundamentals of cruise shipping
The Three Fundamentals of Cruise Shipping DEPLOYMENT AND PORTS OF CALL


Market share of main cruise lines 2011 horizontal integration and the illusion of diversity
Market Share of Main Cruise Lines, 2011: DEPLOYMENT AND PORTS OF CALLHorizontal Integration and the Illusion of Diversity


Full house occupancy level of north american cruises 2004 2011
Full House: Occupancy Level of DEPLOYMENT AND PORTS OF CALLNorth American Cruises, 2004-2011


Cruise source markets 2010
Cruise Source Markets, 2010 DEPLOYMENT AND PORTS OF CALL


The global cruise port system
The Global Cruise Port System DEPLOYMENT AND PORTS OF CALL

70%

A Supply-Based Industry



Cruise passengers visits caribbean 2011
Cruise Passengers Visits, Caribbean, 2011 DEPLOYMENT AND PORTS OF CALL


Cruise passengers visits mediterranean 2011
Cruise Passengers Visits, DEPLOYMENT AND PORTS OF CALLMediterranean, 2011


Functional typology of cruise ports
Functional Typology of Cruise Ports DEPLOYMENT AND PORTS OF CALL


The impact of shoreside power coldironing
The impact of DEPLOYMENT AND PORTS OF CALLshoreside power/coldironing

  • Large differences in CO2 emissions:

    • From 93 to 615 kg of CO2 per passenger-day

    • From 199 to 1,314 g CO2 per passenger–km

  • Juneau in Alaska was the first (2001)

  • Obstacles:

    • Challenges a city’s power grid

    • Investment costs (also for retro-fitting ships)

    • the cost of shore power

    • the absence of international standards for shore power systems.

  • Environmental regulations in urban areas => move to less urban areas


Is the future co location ensenada cruiseport village hph
Is the Future Co-Location? Ensenada DEPLOYMENT AND PORTS OF CALLCruiseport Village (HPH)


Key cruise itinerary design variables
Key Cruise Itinerary Design Variables DEPLOYMENT AND PORTS OF CALL


Revenue and expenses per average cruiser 2011
Revenue and Expenses per Average Cruiser, 2011 DEPLOYMENT AND PORTS OF CALL

On-board services: 20-30% of revenues

Looking for Fuel-Efficient Routes:

17 knots x 14 hours= 200 nm is ideal



Ship repositioning by royal caribbean cruises
Ship DEPLOYMENT AND PORTS OF CALLrepositioningby Royal Caribbean Cruises


Seven is the magic number duration of north american cruises in nights 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


Selected cruise itineraries caribbean
Selected Cruise Itineraries, Caribbean Cruises (in nights), 2011

3-5 nights / 2-3 port calls

Geography

History / Culture

Market proximity

7 nights / 3-5 port calls


Selected cruise itineraries mediterranean
Selected Cruise Itineraries, Cruises (in nights), 2011Mediterranean

World class cultural amenities

Market proximity

Diversified sub-regions


A complex vessel deployment strategy Cruises (in nights), 2011Silver Wind (Silversea Cruises), LOA = 157m, beam = 21.5m 296 guests in very luxurious conditions

No. of port calls

Source: own compilation based on schedules


Simple vessel deployment strategies
Simple vessel deployment strategies Cruises (in nights), 2011

  • Verytightschedules => schedulereliability!

  • Stability in the sailing schedule of ships: not only linked to vessel size, but also to the strategies of the cruise operators and cost and technical considerations


Conclusion live by the supply perish by the supply
Conclusion: Live by the Supply, Perish by the Supply? Cruises (in nights), 2011

  • 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).


Thank you for your attention
Thank you for your attention Cruises (in nights), 2011


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