Presentation is loading. Please wait.

Presentation is loading. Please wait.

The Charthouse Group THE GEOGRAPHY OF CRUISE SHIPPING: ITINERARIES, CAPACITY DEPLOYMENT AND PORTS OF CALL THE GEOGRAPHY OF CRUISE SHIPPING: ITINERARIES,

Similar presentations


Presentation on theme: "The Charthouse Group THE GEOGRAPHY OF CRUISE SHIPPING: ITINERARIES, CAPACITY DEPLOYMENT AND PORTS OF CALL THE GEOGRAPHY OF CRUISE SHIPPING: ITINERARIES,"— Presentation transcript:

1 The Charthouse Group THE GEOGRAPHY OF CRUISE SHIPPING: ITINERARIES, CAPACITY DEPLOYMENT AND PORTS OF CALL THE GEOGRAPHY OF CRUISE SHIPPING: ITINERARIES, CAPACITY DEPLOYMENT AND PORTS OF CALL Jean-Paul Rodrigue Dept. of Global Studies & Geography, Hofstra University, New York, USA Theo Notteboom ITMMA - University of Antwerp and Antwerp Maritime Academy, Belgium 5th Asian Logistics Round Table & Conference Vancouver, Canada, June 14-15 2012

2 The Charthouse Group Ship Happens… Costa Cruises: -25% bookings (May 2011/12)

3 The Charthouse Group The Three Fundamentals of Cruise Shipping Itineraries Attractiveness (seasonality) Customers availability and preferences Capacity Deployment Type of ship Duration Ports of Call Sequence and schedule Choice of turn port

4 The Charthouse Group THE ORIGINS AND GROWTH OF CRUISE SHIPPING

5 The Charthouse Group Once Upon a Time… SS France, 1969

6 The Charthouse Group Powered Transatlantic Passenger Modes and the Demise of the Liner Steamship 1830s to 1960s (About 6 days; 4 days by the 1930s) Dirigible 1931-1937 (About 80 hours) Sea Plane 1934-1946 (About 15 hours) Propeller Plane 1934-1960 (11 hours) Jet Plane 1958- (7-8 hours); Supersonic jet (1976-2003: 3.5 hours)

7 The Charthouse Group Liners and Jet Planes: Basic Economics SS France (1962-1974) 4 days 2,000 passengers (one way) Boeing 747-100 (1970-) 8 hours 3,200 passengers (1 roundtrip per day)

8 The Charthouse Group MARKET DYNAMICS IN CRUISE SHIPPING

9 The Charthouse Group Global Cruise Passengers Carried, 1990-2011 Recession

10 The Charthouse Group Cruise Source Markets, 2010

11 The Charthouse Group Revenue and Expenses per Average Cruiser, 2011 On-board services: 20-30% of revenues

12 The Charthouse Group The Global Cruise Port System 70% A Supply-Based Industry

13 The Charthouse Group Full House: Occupancy Level of North American Cruises, 2004-2011

14 The Charthouse Group 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

15 The Charthouse Group Share of Monthly Cruise Passengers by Region of Embarkation, 2012

16 The Charthouse Group Share of Monthly Cruise Passengers by Region of Destination, 2012

17 The Charthouse Group Number of Monthly North American Cruise Passengers by Destination, 2011

18 The Charthouse Group Market Share of Main Cruise Lines, 2011: Horizontal Integration and the Illusion of Diversity Carnival Cruise Lines (49.2%) Carnival (21.1%) Costa Cruises (7.2%) Princess (6.4%) AIDA (4.4%) Holland America (3.7%) Other (6.4%) Royal Caribbean Lines (23.8%) Royal Caribbean (17.0%) Celebrity (4.7%) Other (2.1%) Others (27.0%) Norwegian (7.1%) MSC Cruises (5.8%) Disney (2.9%) Star Cruises (1.8%) Other (9.4%)

19 The Charthouse Group NETWORK CONFIGURATION AND PORTS OF CALL IN THE CRUISE SHIPPING INDUSTRY

20 The Charthouse Group Key Cruise Itinerary Design Variables Customer-related considerations (demand) Optimal length of cruise, shore time/sail time balance Must see destinations, guest satisfaction Seasonality Synchronization with air transfers Spending behavior and budget Operational considerations (supply) Number and order of port calls Determination of turn ports (+ synchronization with air transfers) Vessel speed and vessel size Berth capacity, accessibility of ports Distances between ports of call Strategic considerations Demographics of customer base Itineraries of competing cruise operators Anticipation of growth markets Supply push to create new cruise markets Revenue-generating potential of daytrips, onboard facilities, etc..

21 The Charthouse Group The Advantages of Mobile Assets: Types of Itineraries Perennial Resilient demand (with high/low periods) Stable weather conditions Seasonal Periodic market potential Usually summer Repositioning Between perennial or seasonal markets Mostly between the Caribbean and the Mediterranean

22 The Charthouse Group A complex vessel deployment strategy Silver Wind (Silversea Cruises), LOA = 157m, beam = 21.5m 296 guests in very luxurious conditions No. of port calls Source: own compilation based on schedules

23 The Charthouse Group Simple vessel deployment strategies

24 The Charthouse Group Cruise Passengers Visits, Caribbean, 2011

25 The Charthouse Group Selected Cruise Itineraries, Caribbean Geography History / Culture Market proximity 7 nights / 3-5 port calls 3-5 nights / 2-3 port calls

26 The Charthouse Group Cruise Passengers Visits, Mediterranean, 2011

27 The Charthouse Group Selected Cruise Itineraries, Mediterranean World class cultural amenities Market proximity Diversified sub-regions

28 The Charthouse Group Functional Typology of Cruise Ports Destination Cruise PortGateway Cruise PortBalanced Cruise Port The cruise port is the sole destination. Limited, if any, excursions outside port area. The cruise port is not a destination, but a point of embarkment (turn port). Excursions outside port area. The cruise port is a destination and a point of transit for excursions. High quality cultural or physical amenities. No other significant amenities in proximity. Security and safety issues. No significant cultural or physical amenities. Port servicing major touristic destination. Various balances between the amenities offered at the port and in the region. Venice, Barcelona, Labadee (Haiti), Cococay (Bahamas) Civitavecchia, LivornoMiami, San Juan, Nassau, Piraeus, Lisbon

29 The Charthouse Group Most Active Cruise Ports by Passenger Visits, 2011

30 The Charthouse Group Is the Future Co-Location? Ensenada Cruiseport Village (HPH)

31 The Charthouse Group 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).

32 The Charthouse Group Thank you for your attention


Download ppt "The Charthouse Group THE GEOGRAPHY OF CRUISE SHIPPING: ITINERARIES, CAPACITY DEPLOYMENT AND PORTS OF CALL THE GEOGRAPHY OF CRUISE SHIPPING: ITINERARIES,"

Similar presentations


Ads by Google