2. Cruising: The Floating Resorts

3. History Phoenicians Phoenicians Romans Romans Portuguese - Prince Henry Portuguese - Prince Henry Spanish Armada Spanish Armada

4. Cruising 1620 the Pilgrims cruised 1620 the Pilgrims cruised Prior to 1945 Ships were mainly for transportation Prior to 1945 Ships were mainly for transportation 1945-1958 Cruising becomes popular 1945-1958 Cruising becomes popular 1966 – Norwegian Cruise Line 1966 – Norwegian Cruise Line

5. Cruising 1620 the Pilgrims cruised 1620 the Pilgrims cruised Prior to 1945 Ships were mainly for transportation Prior to 1945 Ships were mainly for transportation 1945-1958 Cruising becomes popular 1945-1958 Cruising becomes popular 1966 – NCL 1966 – NCL 1972 - Carnival 1972 - Carnival 1977-86 – The Love Boat 1977-86 – The Love Boat

6. Market Segments Value – Carnival, Norwegian & Royal CaribbeanValue – Carnival, Norwegian & Royal Caribbean Premium – Celebrity, Holland America, & PrincessPremium – Celebrity, Holland America, & Princess Luxury – Seabourn, Crystal, Cunard, Silversea, Windstar, DisneyLuxury – Seabourn, Crystal, Cunard, Silversea, Windstar, Disney Specialty – American Hawaii Cruises & Delta Queen Steamboat Co. & ResidenSeaSpecialty – American Hawaii Cruises & Delta Queen Steamboat Co. & ResidenSea

7. Cruising Like hotel companies, cruise ship companies are vertically integrated. Like hotel companies, cruise ship companies are vertically integrated. i.e.. Carnival owns – Carnival, Holland American, Westours, Windstar, Cunard, Seabourne, & Costa i.e.. Carnival owns – Carnival, Holland American, Westours, Windstar, Cunard, Seabourne, & Costa

8. Today The Floating Resort The Floating Resort Can carry as many as 3,000 passengers Can carry as many as 3,000 passengers Cost $500 million or more Cost $500 million or more North American revenue > 8.1 BillionNorth American revenue > 8.1 Billion Carnival employs > 20,000Carnival employs > 20,000

9. Management Organization – Organization – Captain Captain Chief Officer Chief Officer Chief Engineer Chief Engineer Hotel Manager/Chief Purser Hotel Manager/Chief Purser

10. Divisions Organization – Organization – Captain Captain Chief Officer Chief Officer Deck DepartmentDeck Department Navigation OfficersNavigation Officers Radio OfficerRadio Officer Security OfficerSecurity Officer

11. Divisions Organization – Organization – Captain Captain Chief Engineer Chief Engineer Engine RoomEngine Room ElectriciansElectricians

12. Rooms Organization – Organization – Captain Captain Hotel Manager Hotel Manager Like a GMLike a GM

13. Services Cruise Director Cruise Director ActivitiesActivities Shore ExcursionsShore Excursions EntertainmentEntertainment

14. How is it Different? The resort visits various places The resort visits various places All inclusive All inclusive Amount of activities Amount of activities Self – contained Self – contained Entertainment Entertainment

15. Future Future 2002 2002 - 16 new ships were added Fewer Fewer than 20% of travelers cruise 2003 2003 - 16 new ships are expected 2004 2004 & 5 - 17 New ships ResidenSea ResidenSea