Ruise Shipping - One of the Fastest Growing Sectors - Dissertation Example

Download file to see previous pages The cruise industry has witnessed increased popularization. It has emerged as a part of the tourism sector (Baird and Cartwright, 1999). It has gained enormous significance as a contributing factor in economic development. The cruise industry can be held as one of the examples of globalization. The number of ports on call is ever-increasing and the industry currently constitutes of personnel around the globe. The multinational clientele is one of the characteristics of the industry and the industries currently pose its economic as well as political and social implications. In today’s world tourists are more inclined to experience the journey by sea. The industry exploits the interests of the consumers and enjoys a huge consumer base (United States Environment Protection Agency, 2008). In fact, the industry has emerged as the most popular transport facility next to airlines. The sector is characterized as financial crisis resistant and the modernized port structures have opened the gates for cruising vacations.

The examined sector offers eventful, enjoyable as well as relaxing experiences for millions of people from all around the world. It experiences small competition, as there are barriers to entry and exit. Moreover, extremely high costs are associated with the purchasing and servicing of the cruising lines. The industry calls for high investment in the normal operating procedure to take place. All these factors influence the decisions on various aspects related to cruise entrepreneurship as well as on the issues regarding management and organization. Therefore, there is the existence of bargaining power and the capability to take advantage of the economies of scale in the industry. However, the size of the market influences such opportunities in two contradictory ways. As only a few shipbuilders and developers of technology are present in the industry, it forces cruise companies to accept the price offered by them. Again there are large numbers of equipment and food suppliers, which allows them to bargain on the prices offered to settle on the best price (Harlaftis, 1996). As the circle of competition is limited, the existing players can closely watch the emergence of any commercial threats and act accordingly. The market conditions are influenced by the economic conditions under the regime of constant competition.

Some other general conditions that can impact the competition include sightseeing vacations, alternatives available other than meager vacations, thematic parks, etc. The passengers on the cruise ship and the ability to have a firm clientele contribute a major part of the generated revenue for the industry. As the number of strategies undertaken by the companies came into force, it began to generate onboard revenue and the cruise fares are far away from what can be entitled as inexpensive. An abundance of people tends to take a sea voyage just in the mood to relax while others like to take part in various activities and they are willing to pay for it as well. The passengers are also encouraged to participate in a variety of onshore activities. ...Download file to see next pages Read More