Soc (2008) 45:342344

DOI 10.1007/s12115-008-9103-7

SYMPOSIUM: TOURING THE WORLD

The Cruise Industry

Vance Gulliksen

Published online: 2 July 2008

# Springer Science + Business Media, LLC 2008

Although ocean-going vessels have been around for

centuries, the first cruise did not take place until Samuel
Cunard took a group of 63 passengers on the 1,154-ton
steamship Britannia in 1840 across the Atlantic. Little did
Samuel Cunard know that he would set the wheels in
motion for the beginnings of a multi-billion-dollar industry
that carried a record 12 million passengers last year.
In the early days of cruising, ships were simply a
convenient mode of transportationa method to get from
point A to point Band it remained that way for several
decades. Cruise ships played a critical role in everything
transporting troops during World Wars I and II to bringing
European immigrants across the Atlantic to the US. But
with the increasing popularity of air travel in the 1950s
which dramatically decreased the time to get from point A
to point B from several days to a few hourscruise ships
soon began to lose favor with the traveling public. The
industry had to re-invent itself to survive.
Although cruise ships began to focus more on the
vacation aspects of travel, cruising at the time was
considered a vacation for the rich. The perception was that
it was something that older people did in their twilight
yearscertainly not the multi-generational experience that
it is today.
Looking to reach out to new audiences, entrepreneurs
like Carnival Cruise Lines founder Ted Arisonan Israeli
businessman who relocated to Miami to retirebelieved
that with the right mix of on-board amenities and facilities,

Present address:
V. Gulliksen (*)
Miami, FL 33178, USA
e-mail: VGulliksen@carnival.com

cruising could be an everymans vacationone that

appealed to a younger, broader demographic. He purchased
a trans-Atlantic ocean liner called the Empress of Canada,
which was renamed the Mardi Gras and entered Caribbean
service in March 1972. Although the Mardi Gras ran
aground on its maiden voyage, the novel concept of the
ship as the destinationemployed by Carnival as the Fun
Ship marketing philosophyushered in a new way of
oceangoing vacations.
The cruise industry continued to grow throughout the
1970scontinuing to exist mainly with refurbished ocean
linersbut the industry was taken to another level with
Carnivals decision to construct a purpose-built ship, the
1,022-passenger Tropicale, which entered service in 1982.
Although smallish by todays standard, the 36,000-ton
Tropicale, was revolutionary for its time, incorporating a
number of innovative amenitiesspacious cabins, an easyto-navigate layout, and a vibrant interior designstarting a
multi-billion-dollar shipbuilding boom that continues to this
day.
Over the past 25 years, the industry has introduced well
over 100 newand progressively larger ships. These
massive mega-linerssome of which approaching
150,000 tons with the capacity to carry upwards of 5,000
passengersprovided cruise ship architects with a canvas
to create larger, more elaborate amenities and facilities, thus
further mainstreaming cruising and making the experience
more attractive to more consumers. With the larger ships
came more opportunities for innovation, including more
dining, entertainment and activity options than ever before,
todays ships are truly floating resorts with elaborate
entertainment venues showcasing lavish Vegas-style productions rivaling those found on land, a variety of formal
and casual dining options, and expansive open deck areas

Soc (2008) 45:342344

with corkscrew water slides, massive LED movie screens

and water spray parks.
Responding to lifestyle trends, cruise ships also began
incorporating expansive health and wellness centerssome
as large as 21,000 ft2that provide consumers an opportunity to continue their workout regimen or indulge in a
relaxing massage. And with more active consumers, cruise
lines expanded their shore excursion choices to include
more adventure-type choices such as mountain biking,
canoeing, and hiking. Gone are the days of vacationers
sitting on a bus watching the passing sceneryguests want
to fully immerse themselves in the destinations and get an
up close and personal look at the various cultures and
activities ashore.
The mainstreaming of the cruise industry began to attract
more families who were seeking an affordable, activityladen vacation that appeals to adults and children alike.
As such, the cruise industry responded to families by
devoting thousands of square feetprime real estate as it
wereto creating expansive and attractive facilities for
both children and teens. In addition to providing children
and their families with unique play spaces, there is a
spurious marketing component to this as well. The idea is
to place cruising in the vacation mindset for families so that
when it comes time to decide on their next vacation,
cruising in considered a viable optionsomething that
couldnt be said 20 or 30 years ago.
Cruise lines continue to adapt to new technology with
virtually all major cruise lines offering Internet access and
wi-fi capability and many offering guests an opportunity to
make and receive cell phone calls aboard ship. With the
continued expansion due to new tonnage, cruise lines have
also begun to refurbish existing vessels to keep pace with
the desires and preferences of todays consumer. Groundbreaking initiatives such as Carnivals $250 million
Evolutions of Fun ship refurbishment program for its
1990s-era Fantasy-class shipsencompassing Carnival
WaterWorks aqua parks, Serenity adults-only areas and
redesigned main pools and other featureskeep the
product fresh and exciting for vacationers while extending
the life of the ships themselves. Although cruising is well
known for its high level of service, cruise lines have also
invested millions of dollars in hospitality training to
enhance the consumer experience.
Another key area of growth is the tremendous expansion
in drive-to markets, which has enabled cruise passengers to
embark on a ship from a port that is often within a days drive
from their hometown. To illustrate this point, in 1993,
Carnival Cruise Lines operated from four North American
homeportsMiami, San Juan, Port Canaveral and Los
Angelesand this year will sail from a record 19 convenient

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ports of embarkation. In addition to receiving high marks for

outstanding facilities and seemingly endless array of
delicious food, the all-inclusive nature of cruisingi.e. all
meals, accommodations and activities are included in one
priceonly adds to the allure and makes the vacation even
more valuable than ever. Because of its intensive and
ongoing commitment to provide a superior product, studies
show that cruising enjoys the highest satisfaction rating of
any vacation sectorand thus a high rate of repeaters.
Additionally, from a marketing perspective, getting consumers to take their first cruise is the key for the market to
continue to grow and expand.
Aside from providing consumers with memorable, high
quality and value-packed vacations, cruising also has made
a tremendous economic impact, both in the US where many
cruise lines and vendors are based and in the destinations
that the ships visit.
In fact, according to a 2006 study by Business Research
and Economic Advisors (BREA) commissioned by the
Cruise Lines International Association, the trade organization for the North American cruise industry, cruising
accounted for $35.7 billion in total economic benefit,
$17.6 billion direct spending, 348,000 jobs and $14.7
billion in total wages generated for US employees. Also,
the BREA study showed that, on average, a 2,000passenger cruise ship with 950 crew members generates
approximately $322,700 in onshore spending in a US
homeport city (where passengers embark on their cruise).
Further, passenger data shows that 40% of embarking
passengers stay one or more night in a port city on a pre- or
post-cruise. On average, each overnight cruise visitor
spends $289 per visit on retail, dining, local transit and
lodging.
The cruise industry enjoyed a record year in 2007 with
12 million passengers worldwide embarking on cruise
vacationsa 7% increase over the previous year. Passenger
loads at US ports also remained strong with nine million
embarkations. These numbers are expected to grow as the
cruise operators have 35 new ships representing a collective
89,000 total lower berths scheduled to enter service
between now and 2012. These modern ships will continue
to feature the innovative guest-driven amenities and
facilities desired by todays consumer, taking the cruise
experience to an entirely new level. New ship introductions
have a ripple effect on cruise industry marketing efforts
bringing attention and exposure to both new vessels and
existing shipswhile further bolstering the idea of a
relaxing ocean-going vacation to consumers.
And yet, despite all of this success, only 17% of
the population has ever taken a cruise, meaning that more
than 80% of the public is vastly unfamiliar with the

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experience and are choosing land vacations over cruises.

We in the cruise industry must explore new markets and
intensify our efforts to communicate the superiority of
cruising versus land-based vacations if we are to continue
to experience the incredible gains achieved over the past
25 years.
Suffice to say, cruising has changed dramatically since
the days of Samuel Cunard. In fact, cruising has undergone the most dramatic change of any leisure travel sector
over the past 20 or so years. The nearly three dozen new
ships set to debut over the next 5 years will provide even
more opportunities for innovation as we continue in our
quest to providing our guests with wonderful, relaxing and
memorable seagoing vacations.

Soc (2008) 45:342344

Further Reading
Berger, A. A. (2004). Ocean travel and cruising: a cultural analysis.
Binghamton: Haworth Hospitality.
Dickinson, B., & Vladimir, A. (1997). Selling the sea: an inside look
at the cruise industry. New York: Wiley.

Vance Gulliksen joined Carnival Cruise Lines in 1994 as a public

relations coordinator and was promoted to supervisor in 2001 and then
manager 2 years later. He has participated in the public relations
campaigns surrounding the launch of 16 new Carnival vessels and is
currently working on the introductory activities for the new Carnival
Splendor, set to debut July 2, 2008.