Cruise Industry History II: Prelude to the Modern Industry Spring 2015 Bertan Kaynatma Dickinson & Vladimir. 2008. Selling the Sea: An Inside Look at the Cruise Industry. John Wiley and Sons, Inc. Hoboken, NJ.

Ted Arison and NCL 2 Failed cargo business Took over a couple ferries for charter – recalled by Israel Along with Knut Kloster  Norwegian Caribbean Lines Sunward Sunward built in 1966 to sail Southampton to Gibraltar, but Gib had political probs Arison had sales and mktg and bookings but no ships Sunward was so successful, introduced Skyward Ferries had cars in tow, and classic portholes Louis Aura

Shifting trends Sunward 1966 Starward 1968 Skyward 1969 Southward 1971 Regional to national marketing Renovated old ships to new ships Operated year round, representing start of contemporary cruising

Ed Stephan and RCCL GM of Commodore Cruise Line (defunct) Yarmouth Castle Left and designed some ships and found some Norwegian shipping executives to invest Sigor Skaugen and Anders Wilhelmsen Royal Caribbean Cruise Lines (RCCL) Song of Norway 1970 Nordic Prince 1971 Sun Viking 1972 Scheduled so every Saturday 2 very visible ships leaving Miami Focused marketing on west coast and east coast -- planes

Marketing Advancements in the Early 1970’s Available one year in advance instead of just a couple weeks Target markets go national + chartered airfare Warren Titus and Royal Viking Line: reward program for repeat guests Much earlier than any airline frequent flyer program (10 years) 50% return on shorter cruise, 70% on longer luxury world cruises

Stanley McDonald Made the cruise + land option popular Lucrative product today California, Seattle, British Columbia So successful he expanded to Mexico Princess Cruise Lines bought by P&O during Arab oil embargo 1977 Loveboat https://www.youtube.com/watch?v=AIT Tt_8OhNA

European Player Italian olive oil company since 1860 Giacomo Costa Started in US market in 1959 with the Franca C. in Miami Reposition to Puerto Rico More exotic itinerary Airfare package for Northeast guests Airsea package programs of today

Carnival Roots Honeymoon is over Arison and Kloster not getting along Norwegians vs Americans Alleged sabotage: buying equipment and throwing it overboard

Carnival Roots Settled lawsuit and took his money to Cunard Had sales and promotions set up for his “Golden Fleet,” but no ships Tried to get ooooold Carmania and Franconia -- failed Parter with Meshulam Riklis (operated tours under name Carnival) to purchase old Empress of Canada  Mardis Gras in 1972 Mardi Gras ran aground on maiden voyage, didn’t have money for fuel for way back – used bar money and wired future booking deposits

Marketing success “Golden Fleet” not valid Bob Dickinson noticed Commodore Cruise line used a tagline “Happy” fleet Mardis Gras bigger than competition, had lots of room for activities and entertainment and new product positioning as…. Product was the ship, not the destinations Also cheaper because old fleet Switch from Destination focus to the ship being the main attraction and destination icing on the cake In 1970 only 1 percent of America been on a cruise, lower price made available to younger folks Profitable by 1975

Marketing success Older ship meant lower price Profitable by 1975 Young people 1% Profitable by 1975 Bought more ships to do the same https://www.youtube.com/wat ch?v=M4cjpyNc1VU

Mardis Gras 1972 Carnivale 1976 Festivale 1978 https://www.youtube.com/watch?v=Lx3wuO5B4Pg https://www.youtube.com/watch?v=Lx3wuO5B4Pg

Completed shift from NY to Miami as cruising headquarters

Bon Voyage!