Cruise Shipping: Management Control and Prospects for the Greek economy - Dissertation Example

Download file to see previous pages Various measures that have been taken for the expansion process to take place include innovation of new design concepts, length of newly designed ships, new travel destinations around the world and activities on both on-board and offshore. In fact, the new strategies are designed to cater the expectations of all. The cruise industry has witnessed an 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. 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 on sea. The industry exploits the interests of the consumers and enjoys 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 vacation. The examined sector offers eventful, enjoyable as well as relaxing experience 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 the servicing of the cruising lines. The industry calls for high investment in the normal operation procedure to take place. All these factors influence the decisions on various aspects related to the cruise entrepreneurship as well as on the issues regarding the management and organization. Therefore, there is existence of bargaining power and the capability to take advantage from the economies of scale in the industry. However, size of the market influences such opportunities by two contradictory ways. As only few ship builders and developers of technology are present in the industry, it forces the cruise companies to accept the price offered from 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 upon 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 in force, it began to generate onboard revenue and the cruise fares are far away from what can be entitled as inexpensive. An ...Download file to see next pagesRead More