1. Ferries and Cruising

2. 1. BACKGROUND OF FERRIES AND CRUISING 1821 The first regular commercial cross-channel steamship service was introduced in 1821 on the Dover-Calais route. 1838 The Peninsular and Oriental Steam Navigation Company (later P&O) is credited with establishing the first regular long-distance steamship service with operations to India and the Far East

4. 1840 The Cunard Steamship company began regular services to the American continent in 1840 1862 By now the railway companies had gained the right to own and operate the steamships themselves. 1869 The opening of the Suez Canal stimulated demand for P&O’s services to India and beyond as Britain’s Empire looked eastwards

8. The Contemporary Ferry Market Ferries offer short-distance transportation both for local communities, on short domestic routes, and for tourists. Local ferries can help tourists to access areas that otherwise would be difficult to reach. Sea-going ferries often operate on key tourist routes between countries. These services may be provided by regular ships, hovercraft, seacat or high- speed sea service (HSS).

9. Ship

10. Hovercraft

11. Seacat

12. High-speed Sea Service (HSS)

13. International ferries in the UK are operated by companies from a variety of countries including Britain, Ireland, Scandinavia, France and Belgium.

14. The leading companies, by volume, are P&O European Ferries, Stena Line, Brittany Ferries and Seafrance.

15. 2. HOLIDAY INITIATIVES

16. 2.1 The Channel Tunnel

17. Impact on ferry services Competition from Eurostar and Le Shuttle has however had a considerable effect on cross channel ferry operations not least of all in forcing some rationalization in the UK industry. In common with air transportation on competitive routes, the ferry companies have lost passengers to the tunnel. The Channel Tunnel was a strong competitor offering uninterrupted services which are both frequent and considerably faster than the ferry services.

18. The response from the ferry companies Rationalization in the sector Heavy investment in their fleets (several hundred million pounds) Increased frequencies (especially on short routes) Intensive marketing activities including competitive pricing and involvement with promotions Increased collaboration with the travel industry (e.g. tour operators, hotels)

19. By the end of the 1990s, facilities onboard ferries were often extensive. General Bars Lounges Information desk Globetrotier Club lounge Shopping Spikes Globetrotter lounge Viewing gallery Stingers Panorama lounge Bureau de Change Entertainment Restaurants Casino Ben & Jerry ’ s Children ’ s areas Cupa Cabana Children ’ s cinema Globetrotter Onboard entertainment MacDonald ’ s

20. 3. PACKAGED TRAVEL The main suppliers of water-borne packaged travel are the cruise lines who offer more of a leisure product than a mode of transportation.

21. 3.1 The Cruise Industry Cruising is one of the fastest growing sectors of the travel business with bookings currently growing at least 15 per cent year on year. There are currently around 50 new cruise ships either on order, under construction or on the drawing board.

22. The ‘ big four ’ cruise lines 1. Carnival corporation 2. Royal Caribbean International/ Celebrity Cruises Carnival Cruise Lines Royal Caribbean International Holland America Line Celebrity Cruises Windstar Cruises Cunard Line Seabourn Cruise Line Airtours Sun Cruises (26 per cent stake) Total capacity of existing fleet: 71,344 Total capacity of existing fleet: 32,992 (including Airtours Sun Cruises 4196) Total capacity on order: 33, 192 Total capacity on order: 56,656

23. The ‘ big four ’ cruise lines 3. P&O Princess Cruises 4. Star Cruises/Norwegian Cruise Line Princess Cruises Star Cruises P&O Cruises NCL Swan Hellenic Orient Liners Aida Cruises Norwegian Capricorn Line Festival Cruises (dissolved October, 2000) Total capacity of existing fleet: 11,338 Total capacity of existing fleet: 24,236 Total capacity on order: 26,404 Total capacity on order: 15, 004

28. Specialist cruise lines The Disney fleet includes two vessels – Disney Magic and Disney Wonder – which visit destinations in Florida and the Bahamas.

30. Flexible offerings Varied ports of call Varied activities at each port port of call/onboard Varied attractions at each port of call/onboard Global sourcing of materials Global sourcing of labour Segmentation opportunities (e.g. romantic cruises, adventure cruises, sophisticated cruises)

31. The traditional image of cruising. Expensive Up-market clientele Emphasis on high service levels Provision of security and comfort (whilst visiting destinations often that had a lack of developed tourist infrastructure ) Itineraries that included visits to several destinations (in comfort as opposed to most mobile holiday forms) Destinations in the Mediterranean and Caribbean popular

32. New product developments The industry has however successfully managed to attract a far broader customer base in recent years by varying its product offering An important development in the 1960s was that of Fly Curises which transport passengers by aircraft to the departure point for the cruise.

33. Product offerings in the cruise sector 1. Floating resorts 2. Mini cruises 3. Themed cruises 4. Sailing ships 5. Family cruises 6. Cruise and stay 7. World cruises

34. Tour operators and the cruise market Tour operators have long been involved in the cruise market in the USA but have traditionally had far less involvement in the European cruise industry. More recent tour operator ventures into the cruise market have met with more success and cruising is now an important business for many of Europe’s mass market tour operators.

35. Airtours cruise operation Sun Cruises Costa Cruise Direct Cruise

36. Sun Cruise

37. Costa Cruise

38. Direct Cruise

39. Distribution Cruise lines have traditionally relied rather heavily on travel agent for distribution and this has been a lucrative source of commission earnings for agents. Specialist cruising agents have been developed including Cruise World, Mundy Cruising and The Cruise Line.

40. Trade Associations As with other forms of transport, there are associations with a cruise line membership. In the USA, the American Cruise Lines International Association (CLIA) is important whilst in the UK the Passenger Shipping Association is significant.

43. 3.2 BOATING HOLIDAYS Coastal and inland waterways offer popular holiday options. Demand has grown for sailing holidays. Learn-to-sail package holidays have also captured some market share.

44. CRUISE IN THAILAND