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

2. 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

3. 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

5. 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

7. 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

8. 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
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9. 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

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

12. 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

14. 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

15. Marketing success Older ship meant lower price Profitable by 1975
Young people 1%
Profitable by 1975
Bought more ships to do the same
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16. Mardis Gras 1972 Carnivale 1976 Festivale 1978

19. Completed shift from NY to Miami as cruising headquarters

21. Bon Voyage!