Cruising in the New Millennium

Abstract

The cruise industry is undergoing a period of rapid growth and remarkable change. In North America particularly the cruise industry is undergoing phenomenal growth with a record 5.5 million cruise passengers in 1998, representing an 8.6 per cent increase in passengers over the previous year. To meet this demand over 30 new ships costing in excess of US$10 billion are on order for delivery early in the new millennium. The industry body, Cruise Lines International Association (CLIA), attributes this growth to several factors, including the increased capacity as new ships are introduced combined with a stronger focus by travel consultants on selling cruises. The cruise ships currently being built are designed for a new generation of passengers with broader, more varied interests and these ships embrace a number of innovations such as large multi-level hotel-style atrium-lobbies, fitness complexes, and business centres. The cruise industry has considerable economic impacts, with the US sector alone generating more than 450,000 jobs accounting for US$ 15 billion in wages and billions of dollars in the purchase of goods and services. This paper outlines some of the challenges facing the growth of the industry such as the growing size of the market, the increasing size of the ships and a number of new technologies, facilities and issues.