MNG 10291 Cruise Business Assignment: Analysis of Key Topics

This homework assignment analyzes the cruise business, exploring the evolution of cruise dining models from traditional to contemporary approaches, examining the shift towards maximizing onboard revenue generation, and discussing the implications of dynamic pricing. It also addresses cruise ship security, including measures to prevent piracy and terrorism. The assignment delves into the significance of onboard revenue, the importance of security, and how these factors influence cruise ship design and operational relationships between marine and hotel departments. The student provides answers to long-answer questions, short-answer questions, and explores contemporary trends in the cruise industry, supported by references to academic sources and industry insights.

Running head: THE CRUISE BUSINESS
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The cruise business
Name
Institution
Professor
Course
Date

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ASSESSMENT QUESTIONS AND ANSWERS
1) Describe how and why the cruise dining models have evolved rapidly from the two-
sitting model to what is offered today. Provide descriptions and examples of traditional and
contemporary models and trends in your answer. Identify some of the implications and/or
unique problems for the cruise business arising from these trends in cruise ship catering.
The cruise dining models have evolved very rapidly from the two-sitting model to the
way it is today through undergoing certain changes. It has been a very nice cruising store from
the past up to the moment. The cruise dining models have been undergoing some changes to
today’s standard level. Focusing on the ocean liner, the elegant rooms have been completed with
the dazzling series of chandeliers. It is a more relaxed type of the buffet stylistic restaurant with
the lido desks. Up to the recent dates, the cruise dining models have been very predictable and
presentable. It has the first classic seating which starts from 5:30 pm to 6:00 pm. The second
classic seating starts from the 8:00 to 8:30 pm. Cruise dining models have more casual venue
for dining within the pool deck of the ship. The focus of the industry shifted to the cruise ship
dining which is now static. Typically, when one is confirming the cruise reservation, one needs
to select the traditional early at about 6:00 pm or late at 8-8:30 pm. This is the current dining
time which is based on the preferences of people. The standards of dining are so different
because currently, one needs to dine in the main dining room just the same time in the evening.
This takes place within the assigned table, same server and same table mates. This is one of the
changes and evolvement that has taken place from past events where there was no system of
dining. The reason why the cruise dining models have evolved so rapidly is that there are
continuous transformations within the cruise lines that bring exciting and fresh innovations in the
cruise industry. Based on the traditional models, one just needs to know what time to be ready

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for going to enjoy. One's server is perfect because he/she know the measure of your meal you
take. For example if you take 1.5 of the diet is coke. By the time you reach, only 1.5 cokes will
be waiting for you well prepared and served.
In another example, one is assigned a certain table with other passengers shared among
four to ten guests. In the contemporary model basis, the cruise dining has a label which is used
by the industry to describe the cruise lines in the mass market. For example, we have premium
and luxury services labels of the cruise dining models. They are used in the hotel as the
parameters to distinguish different categories of service level, price level, and target market.
Some of the implications show that there will need for the right channels of communication
between the passengers and the catering department. Moreover, travelers using the same market
segment will need to weigh some factors when choosing destinations for tourism brands. Some
of the unique problems associated with this are high cost and operational. The solving of the
categorization problem in the competitor analysis is also challenging ineffective communication.
The issue of limited space and facilities affects the catering department because they will have
not enough space and equipment to carry out their activities.
REFERENCE
Vogel, M 2012, ‘Pricing and revenue management for cruises’, in M Vogel, A Papathanassis &
B Wolber (eds) The Business and Management of Ocean Cruises, CABI, Wallingford,
pp. 131-144
2)“Even unprofitably low ticket prices have become economically acceptable, as long as the
overall cruise ship economics, including the on board business, work out fine.”

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Explain this quote by discussing the significance and practice of on board revenue
generation and management with regard to the contemporary cruise business. Discuss the
implication/s of this trend for the industry, including the development of cruise ticket
pricing models and include specific discussion about the “Dynamic pricing” model.
This quote means that it will be so oversimplification process of reducing the cruise
sector of growth pricing in the cruise business. It significantly meant that the price of the cruise
should be determined by the customers' value but not the cost. The quote is emphasizing that
cruise products cost less each day than they used to be in the future. This trend is allowed in the
cruise section to expand the actual base attracting potential customers for sustainability.
Reflecting on the Dynamic pricing model, the cruise lines have been turning their price models
and having sophisticated computer-based data/information. This has been in conjunction with
communication and decision-making systems which enable the price adjustment programs each
day. This is significantly changing the demands and ship occupancy. Reflecting on the quote,
there are significant important aspects as well as trends within the cruise business. This makes it
stand out from any other competitor company. The other significant of the quote is that it is so
important for the cruise understory because it collects more information regarding its passengers.
It will be able to collect the potential and current spending behaviours of the customers alongside
with the tests and presences. This is done by keeping the records for passengers on how they
spend their money on board. This trend for the industry implies that through the quote, it will be
good on how to make some of the industry operations so economical using less fuel, less water
and producing less waste. The process will be efficient in facilities management frameworks in
the cruise business.

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The main implication of the changes based on the quote is to compete more effectively
with other hotels and resorts offering the same services. It is aimed at attracting the new market
which is perceived by the cruising traditional standards. The Dynamic pricing model is a
strategy that applies mostly to the variable pricing other than fixed pricing. As the data are model
analysed, the optimal level of the data is calculated. The time between the price changes depends
on the business and items offered. This can be set especially each day or even after every hour.
The dynamic model makes use of the advanced data which includes automated processes that are
traditionally modelled. In the development of cruise ticket pricing models, the passengers have
few choices while they are on board. Those activities associated with the onboard sales are
reducing cruise ticket prices. Considering the empirical level, the hedonic price functions offer
specific impacts on price baselines. In this case, we mainly focus on the implication model
especially when the asymmetric of the cruise industry is set at ideal standards. The cruise
industry information shows that the associated revenues are the fundamental sources of the
profits. However, add-ods do differ especially when there is a share of the consumer surplus in
the cruise industry.
REFERENCE
Vogel, M 2012, ‘Pricing and revenue management for cruises’, in M Vogel, A Papathanassis &
B Wolber (eds) The Business and Management of Ocean Cruises, CABI, Wallingford,
pp. 131-144
TEN Short-answer Questions

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1.a/ The safety and security of all passengers and crew on board a cruise ship is a serious
situation. Who has the ultimate authority, and is criminally liable regarding the actions of
all on board a cruise ship?
A) The security company that provides the security on board the ship?
B) The cruise line or corporation the ship is owned by?
C) The nation the cruise ship is registered under?
D) The captain of the ship?
ANSWER IS B.
1. b/ What are the author’s thoughts about the cruise industry’s safety and security
situation in Reading 9.2, and how piracy and terrorism are becoming linked?
Terrorism and piracy have become a major threat to cruise ships. The author thought that
the cruise ship management should employ more prevention measures in the port. The author
thinks that cruise lines should do thorough security check-ups for all passengers. Terrorism and
piracy are linked because they are the most occurring in cruise travel and need to be prevented.
1. c/ Fill in the blanks in the two lists below: -one identifying the practices, procedures
and/or security measures cruise lines and their ships currently employ or participate in to
avoid piracy and prevent terrorism; and the other identifying what cruise lines could and

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perhaps should do, or have been recommended to do going into the future to prevent
terrorism in particular.
ANSWER (fill in the blank rows in the table):
Current practices, procedures and/or
security measures
Future practices, procedures and/or
security measures
e.g. security equipment used – explosive
detectors, x-ray machines
e.g. anti-aircraft and other weapons on
board to repel pirates
Automated system Anti-weapons detectors to prevent any
armed person from boarding.
Security checks Thorough manual check up for each
passenger boarding to check any
weapon hidden.
luggage x-ray-to check all luggage Distance alarm detection to detect any
weapon near the ship or in the ship.
Anti-piracy automated wave machine The machine should be able to detect the
piracy waiting in the sea far distance
Anti- terrorism signal There should be auto alarms once the
cruise ship is attached to be sent to all
nearby police force to take immediate
actions.
Anti-explosive detectors Anti-explosive detectors to detect any
explosive devices set within the path of

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the cruise ship at a far distance.
REFERENCES
Tarlow, P.E., 2009. Tourism safety and security. The SAGE handbook of tourism studies,
pp.464-480.
Lois, P., Wang, J., Wall, A. and Ruxton, T., 2014. Formal safety assessment of cruise
ships. Tourism management, 25(1), pp.93-109.
2/ What are the implications for cruise ship design regarding your discussion in Question 2
of the Long-answer Section?Chapter 10
The implication for the design of the cruise ship is to focus on some non-profit activities
meant to attract the customers. The quote implies that cruise standardizes the ticket pricing for
the favor of the customers’ needs and preferences. The reduction of ticket pricing is the best
approach to dealing with the pressure from the competitor industries.
3.a/ What do you think is one of the most significant contemporary trends in the cruise
business?Topic 7 ppt
The most significant contemporary in the trends of the cruise business is to stand out
from other competitive tourism business. The cruise business tries to be unique and lenient to the
passengers so that they can attract so many of them to purchase their goods and services. It does
so by satisfying the needs and preferences of the customers regardless of making a profit or not.

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3.b/ Explain why
The cruise company is faced with stiff completion from other tourism competitive
businesses. The cruise business is trying to come up with favourable conditions for its customers.
It tries to collect all the data regarding the needs of its customers for effective services. By doing
so, it will still be competitive from the other business offering the same services.
REFERENCES
Singh, A., 2010. The Asia Pacific cruise line industry: current trends, opportunities and future
outlook. Tourism Recreation Research, 25(2), pp.49-61.
Timothy, D.J., 2014. Trends in tourism, shopping, and retailing. Companion to tourism, pp.378-
388.
4.a/ What are the critical points of differentiation between the Departments of the Marine
and Hotel Operations and their personnel?
Marine Operations and Personnel Hotel Operations and Personnel
The supervision management and the
coordination operations within the ship.
The personnel include cargo handlers
Oversee the lodging operations the
personnel in charge is hotel management
managers.
Safety and security systems-security
team
Food services-senior hotel manager

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Communication systems-
communication crew
Housekeeping operations- house keepers
are in charge
Repair and maintenance operations-
mechanics crew
Human resource management- human
resources manager is in charge
Supply operations-suppliers Sales and finances operations- cashiers
and finance officers are in charge
Certification of the fleet vessel Security operations-security team
4.b/ How may these points of differentiation affect or impact the operational relationships
between these two Departments?
This depends on how the industry invests in both departments. If the cruise business pays
much attention in making sure that the two departments are operated well, then the industry will
attract more customers than before and compete well with any other competitive business. This
will result in a high level of profit for the cruise business as many customers will prefer it.
5.a/ What do you think is one of the most critical issues or challenges for the future of the
cruise business that has not already been addressed in this test?
The issue of getting well-trained personnel based on day to day changing technology is a
challenge.
5. b/ Explain why, and include a recommendation about how this may be, or may need to
be addressed for the future success of the cruise business.

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Technology is a dynamic process and therefore, this should be addressed to make sure
that the cruise ship management team is aware of the changing dynamics of the technology. They
should employ flexible employees capable of changing from one form of operation to another
because of changing technology.
REFERENCES
Wolber, B., 2012. 16 Hotel Operations Management on Cruise Ships. The business and
management of ocean cruises, p.209.
Johnson, K.D. and Tatum, C.B., 2013. Marine operations. Journal of Construction Engineering
and Management, 119(1), pp.148-162.