Relationship Between Tourist Product And Cruise Tourism Essays

Relationship Between Tourist Product And Cruise Tourism Essays Relationship Between Tourist Product And Cruise Tourism Essay Relationship Between Tourist Product And Cruise Tourism Essay This paper seeks to discourse the construct of merchandise life rhythm apply to the sail merchandise merchandising in Flying On Travel Agent ( Hong Kong ) . First, the relationship between tourer merchandise and cruise merchandise is defined. Then the construct of merchandise life rhythm is introduced. Finally, a instance survey of Flying On Travel Agent ( Hong Kong ) is presented to exemplify the life rhythm of selling the sail merchandise. Transportation system by bearer ; adjustments ; lease of motor vehicles ; or any other service related to go. Depending on the legal power this may or may non include clip portions. Travel services includes transit by air, sea, or land, or the proviso of other goods or services related to recreational, cultural or educational travel, including but non limited to lodging, nutrient, guided Tourss, or direction. The sail industry is one of the fastest-growing sections of the travel industry since 1980 the industry has had an mean one-year rider growing rate of 8.1 % . Almost 45 million people have cruised at least one time ; of these, about 23 million have cruised in the past 3 old ages. ( By: Miller, Richard K. ; Washington, Kelli. Travel A ; Tourism Market Research Handbook, 2009, p88-91, 4p, 5 Charts ; ) Between 1999 and 2005, rider degrees for conventional sails have expanded from about 8.5 million to 13.9 million. During the same period, the Asia Pacific part accounted for between 5 % and 8.6 % of the worldwide market. Between 1999 and 2005, Hong Kong s typical rate1 of gaining control of the Asia Pacific conventional sail market ranged from 16 % to 30 % . The entire sail rider throughput in Hong Kong including local occupants and international riders going on conventional sails and cruises-to-nowhere has increased from 1.38 million in 1999 to 2.15 million in 2005. The figure of cruise vas calls has increased from 409 to 1 051 over the same period. The growing of touristry even exceeded the growing of GDP worldwide by about 1.3 times in the last 25 old ages of the twentieth century ( WTO, 2003 ) . The sail industry is a niche market in the touristry industry. The market portion of sails in the touristry market is little and history for merely 0.6 % of the hotel beds offered worldwide ( WTO, 2003 ) . This figure seems little, but the sail market has shown unbelievable growing figures and is seen as a market with high potency. The sail industry has grown with an mean one-year per centum of 7.4 since 1980. An estimated 15 million travellers cruised in 2008. The North American sail market dominates the industry and it makes a important part to the American economic system. The sail industry generated $ 38 billion in the entire U.S. economic end product in 2007 ( CLIA, 2009 ) . The sail industry becomes nevertheless more and more globalized with a turning figure of finishs and calls in Europe and other parts ( Cruise Europe, 2009 ) . Between 1990 and 2004, rider degrees expanded from 4.4 to 13.2 million worldwide ( Bermello-Ajamil A ; Partners, In 2005c ) . Accorrdint to B A ; A, rider carrying degrees could spread out from the present 13.2 million to between 19.3 and 30.1 million by 2020 ( see Figure ES-1 ) . Target Market Hong Kong as a Port-of-Call Hong Kong as a Homeport China F Second Far East F/S F/S Southeast Asia F F Trans-Pacific / Shifting F F World Cruises Second Second Australia/Asia/N.Z. Tungsten Tungsten Cruise to Nowhere N/A Second Key: Strong ( S ) , Fair ( F ) , Weak ( W ) Fit of Hong Kong within Identified Target Markets Beginning: B A ; A and GP Wild, 2004 Hong Kong s sail season is characterized by both year-around regional operations by Star Cruises and seasonal ( October to May ) operations by international sail operators. Cruise ships are non, like ferries, merely seen as a manner of conveyance. These ships are frequently a finish on itself, and can be typified as drifting hotels, or even drifting resorts ( Dowling, 2006 ) . The Product Life Cycle The merchandise life rhythm theory says that the development of gross revenues and net incomes of new developed merchandises shows a clear form. The merchandise life rhythm theory provinces that a merchandise goes, after its debut, through different stages. From the debut, the merchandise will cognize a stage of growing, adulthood and eventually worsen or revival ( Dekker et al, 1995 ) . Butler developed, based on the merchandise life rhythm, the life rhythm of tourer locations. Alternatively of the measure of merchandises sold, the life rhythm of touristry development uses the figure of visitants as the index of the degree of finish development ( Butler, 1980 from van der Borg et Al, 1996 ) . The development procedure of any tourist finish may, merely as the development procedure of merchandises, be represented cyclically ( van der Borg et Al, 1996 ) . Figure 1 shows the finish life rhythm curve with the stages of debut, growing, adulthood and decline/revitalization. With mention to the sail industry the debut of a sail finish begins of class with the necessary substructure. Initial costs are high since the sail port should often be made accessible for sail ships and should hold the required installations to suit these cruise ships. During the stage of debut a limited figure of cruise ships visit the sail port. In this stage costs are comparatively high in relation to the benefits. During the stage of growing the figure of sail ships and sail riders sing the metropolis addition and installations need to be improved. Since the available capacity is used more expeditiously, costs will drop in relation to the grosss. The disbursals made by sail riders in the metropolis will increase and the sail sector will lend significantly to the economical development of the finish. During the stage of adulthood the sail sector can be considered a major subscriber to the local community. The sail port is visited by a big figure of the largest sail ships and ins tallations are province of the art. The sail port metropolis has achieved an international repute. The finish life rhythm shows nevertheless that there is a possibility of diminution. Cruise finish could lose their place and repute which would ensue in a diminution of the figure of sail ships sing the finish. A diminution can be caused by, for illustration, negative environmental impact or nuisance due to the big figure of sail riders sing the finish ( Gibson, 2006 ) . The life rhythm differs of class for each and every merchandise or touristry finish. Selling schemes that should be adopted in the different phases of development differ as good. In the stage of merchandise development it is necessary to run into the client demands. The demands of sail lines and sail riders should be satisfied in order to develop into booming sail finish. The finish should construct upon its trade name based on the demands of its clients. During the debut stage it is of import to make consciousness among sail lines and sail riders. In this manner the sail finish will procure its topographic point in the market. With an addition in rider volumes, costs will worsen and net incomes will lift. In this phase publicity displacements to making trueness in order to stay and better the obtained place ( Plog, 2001 ) . Application Cruise ships are non, like ferries, merely seen as a manner of conveyance. These ships are frequently a finish on itself, and can be typified as drifting hotels, or even drifting resorts ( Dowling, 2006 ) . This has non ever been the instance. The chief intent of the large Ocean line drives of the past, like the Normandy ( 1932 ) and the Queen Mary ( 1934 ) , was chiefly to transport riders and lading between Europe and America[ 1 ]. Transoceanic line drives sailed on fixed agendas and paths and the different categories in the society were separated with first category cabins and public infinites in the forepart, 2nd category in the center and steerage category in the dorsum of the ship ( Maxton-Graham, 1985 from Chin, 2008 ) . The velocity of these ocean line drives was non merely of import economically, but besides for prestigiousness[ 2 ]. The Ocean line drives lost nevertheless market portion due to the lifting popularity of the aeroplane and eventually lost their map as conveyan ce manner. Many ships were taken out of concern or were used merely to do pleasance trips. The sail industry as we know it emerged in this period. Nowadays, aeroplanes do no longer vie with the rider ships runing in the sail sector and really hold become an of import extension of the sail merchandise. The sail merchandise is non, as the ocean line drives, based on the transit of riders but on the experience they are able to give to their riders. 6.3 Market analysis 6.3.1 Introduction The sail sector is an sole portion of the leisure industry and has developed quickly in the last four decennaries. The sector is still spread outing, non merely in figure of riders, but it becomes besides more and more globalized. In the market analysis we will look more closely to the major sail parts, the growing of riders in these parts, the features of sail riders, the belongingss of the sail merchandise and sail line economic sciences. 6.3.2 Cruise parts The major sail parts in the universe are based in North America and Europe. Figure 2 gives an overview of the entire overnights per part in 2008. The Caribbean is the major sail part, followed by the Mediterranean and Central America. The Caribbean and Central America are non negatively affected by seasonal conditions forms, apart from the hurricane season, and cruise ships are deployed in these parts throughout the twelvemonth ( Gibson, 2006 ) . Between April and September, a big portion of the sail fleet is nevertheless relocated to Europe and Alaska. These parts show a clear seasonal form with no sails in the winter period and a extremum in the summer months ( Dowling, 2006 ) . Climate can be considered as a finding factor in the deployment of sail ships. Figure 2: Market portion 2008 per part, based on the entire overnights. Beginning: CLIA 6.3.3 Passenger growing Cruise touristry has, together with the whole leisure industry, shown a phenomenal growing. The sail sector developed from a little market with sail lines runing with merely a individual ship, to a globalized industry with a fleet of legion alone vass ( cruiseweb.nl ) . Table 1 shows that particularly the European market and transatlantic ocean trips have shown important growing figures between 2000 and 2008 of severally 238 % and 279 % . The market of North and Central America showed a rider growing of 141 % . The dramatic growing in figure of sail riders can besides been seen based on the figure of sail ships ordered by the different sail lines. The CLIA Five-Year Capacity Report and Passenger Carrying Report of 2008 shows that 34 new ships were contracted or planned to be added to the fleet from 2008 to the terminal of 2012 ( CLIA, 2008 ) . Table 1: Entire bed yearss per part 2000-2008 Beginning: CLIA 6.3.4 Characteristics sail riders The general profile of the sail vacationist is upscale and good educated, with a average family income of $ 93,000 and 69 per centum holding a college grade in 2008. The average age of patrol cars is now 46 old ages old, down from 49 in 2006 ( CLIA, 2009 ) . This shows that that the sail sector continues to pull younger travellers. The sail market is dominated by American sail riders, followed on distance by riders from Great Britain. Other riders come chiefly from other European states like Germany, Italy, Spain and France ( Gibbons, 2009 ) . The tourer industry experience the tendency that people do no longer take one large vacation per twelvemonth, but do several shorter trips alternatively ( Bargeman et al, 2002 ) . This tendency can besides been seen in the sail industry. The length of the sails has declined over the old ages. Particularly short sails with a length between 2 and 5 yearss have become more popular in comparing with 25 old ages ago. Figure 3 shows the length of sails in 1980 and 2006. Figure 3: Length of sails Beginning: B A ; A, 2008 6.3.5 Cruise merchandise The sail industry is characterized by significant heterogeneousness likewise to other touristry merchandises ( Papatheodorou, 2001 ) . Each sail is different in footings of ports of call, or vas. Besides that, the experience people have, does differ among every person. Cruise lines have the chance to distinguish in footings of quality and in footings of assortment and offerings. Differentiation is used as a scheme by some sail lines in the sail industry. Cruise lines developed merchandises that meet the penchants of different types of riders by offering for illustration thematic sails and sails to different parts. An illustration is Disney Cruise, which offers sail riders a alone experience by concentrating on the subject of Disney[ 3 ]. The sail merchandise, offered by sail lines, has changed from an all-inclusive bundle to a more customized merchandise. This means that amenities and experiences can be booked together with the sail itself. Onboard gross revenues have become a important proportion of the turnover of a sail ship and the net incomes derived from on shore jaunts are important. A typical Royal Caribbean sail ship can, for illustration, generate close to a half million dollar tour income with a individual call to St. Petersburg, Russia ( Peisley, 2003 ) . Harmonizing to Royal Caribbean s Vice President for Commercial Development, John Tercek, US $ 100 million of the net income of Royal Caribbean s US $ 351 million net income in 2002/3 was derived entirely from shore jaunts ( Klein, 2006 in Ross, 2006 pp. 262 ) . Most people who take a sail do non populate in the country of the port of going. Therefore, fly-cruise bundles are really popular and drama, following to the offering of jaunts and other servic es, an of import function ( Papatheodorou, 2006 ) . 6.3.6 Cruise line economic sciences Economies of graduated table are of import for sail lines. The mean cost per rider bead as the graduated table of operation additions. Two chief classs of cost nest eggs can be identified, viz. : economic systems of denseness and economic systems of fleet size ( Papatheodorou, 2006 ) . Economies of denseness means that sail lines are able to run more expeditiously with larger sail vass since fixed costs are spread over a big figure of riders. Economies of fleet size are derived by distributing fixed costs over a big figure of cruise ships. Besides this, a big fleet makes it for sail lines easier to spread out in many different parts and therefore set up a web of operations ( Papatheodorou, 2006 ) . Cruise lines are able to run more expeditiously with an addition in the figure of ships and capacity, since the variable costs rise by a rate which is less than relative with the addition of rider capacity ( Blauwens et al, 2007 ) . Ships have hence become bigger and bigger and are in some instances even considered as the chief finish, alternatively of the ports of call ( Chin, 2008 ) . Royal Caribbean has late ordered a new vas, the Ocean of the Seas with a capacity of 5400 riders, which will come in operating in the terminal of 2009 ( www.royalcaribbean.com ) . In comparing, in the 1970s and early 1980s, the typical sail ship accommodated between 500 and 800 riders ( Klein, 2006 ) . Due to the importance of economic systems of graduated table the sail industry is consolidated among three major participants. The rider capacity of the Carnival Corporation, Royal Caribbean Cruises and Star/NCL Cruises cover 80 % of the entire worldwide sail capacity. The allotment of the rider capacity among the major sail corporations is shown in figure 4. Figure 4: Cruise capacity by Cruise Corporation in 2008 Beginning: B A ; A, 2008 Under the three chief sail corporations, several sail trade names operate with a great grade of independence. Each trade name looks after their ain itinerary planning, selling, on shore jaunts and other operations. Each of the trade names has specific nucleus consumer markets that are based on demographics and nationality. Table 2 shows the three corporations, with the figure of ships in operation and the trade names operation under each corporation. Table 2: Major Cruise Corporations Parent group Number of ships Trade names Carnival Corporation 99 Carnival Cruise Lines Holland America Line Princess Cruises Seabourn Cruise Line in North America P A ; O Cruises UK Cunard Line Ocean Village AIDA Costa Crociere P A ; O Cruises Australia Royal Caribbean Cruises, Ltd. 42 Royal Caribbean International Celebrity Cruises Pullmantur Azamara Cruises Celebrity Xpeditions Star/NCL Cruises 18 Star Cruises Norse Cruise Line NCL America East Lines Other Disney Cruise Lines Crystal Cruises MSC Cruises Regent Seas Cruises Oceanica Silversea Cruise Lines Beginnings: B A ; A, 2008 ; Dowling, 2006 Cruise lines have really high tenancy rates, compared with the hotel industry. The mean room tenancy in the sail industry lies above 95 % , compared to 59 % for the hotel industry ( Toh, 2005 ) . The seasonal motion is a cardinal factor of the fiscal success of the sail industry. Cruise lines are, unlike hotels, flexible in the placement of their capacity. 5.3 Conclusion and hypothesis The development of touristry finishs shows, merely as the development of merchandises, a cyclical form. The construct of the finish life rhythm says that a touristry finish goes through different stages of development. Alternatively of the measure of merchandises sold, the construct uses the figure of visitants as the index of development. A sail finish will, based on this construct, know a stage of merchandise development, in which the necessary substructure is constructed, a stage of debut, growing, adulthood and a stage of possible diminution or revival. Each stage asks for a different selling attack. After all, a stipulation for the development of a competitory touristry finish concerns the effectivity of touristry development attempts. During the initial stage it is of import to develop a coveted image trade name which creates consciousness among sail lines and sail riders. During ulterior stages it is of import for a sail finish to make trueness in order to procure its topograp hic point in the market. Decision