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CRUISE AS PART OF WATER TRANSPORT - DEVELOPMENT AND CHALLENGES

Conference Paper · November 2016

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 CRUISE AS PART OF WATER TRANSPORT - DEVELOPMENT AND
CHALLENGES

Cane Koteski, Nicholas V. Dimitrov, Zlatko Jakovlev, Nikolcho Petrov

ABSTRACT:
Traffic allows travel, exchange of ideas and good an opportunity to expand knowledge and so on. Today
tourism is used by all types of traffic, and the participation of certain species in total tourist trips varies depending
on the distance of the tourist destination emitivniot market.
This paper will provide an appropriate overview of international waterways or cruise as a branch, and
target are discussed economic implications of cruising, safety, security and trend krstarechkata industry. Scientific
work is composed and processed by means of appropriate technical literature and material collected and processed
by websites relevant to the topic in question.
The theme will allow us insight into the industry cruise from the beginnings till modern trends, the growth of
the industry, its evolution, the most important destinations for cruise.
In statistics and tables we can see significant progress on cruising, the growth in the number of passengers,
the development of shipbuilding and predictions for the future, and the multiplicative function it plays in the overall
economy.
Keywords: Cruise, passengers, ships, destinations

Introduction: Traffic as a complex economic phenomenon of modern life has many implications
(impact, consequences, etc.). The development of tourism.
Advances in technology, communication and transport will increase the mobility of people and
could lead to their exposure to different cultural social impacts social interactions. In terms of total tourist
spending and development of tourism, transport, in addition to the transport of tourists has a significant
role in the transport of goods to meet the needs of various sectors within the tourism industry.
International tourist traffic takes place between the frontiers of two or more countries and can be:
traffic between two or more states of one or more continents, transit traffic and border traffic. (First
Velkovski, 2008, 5). Globalisation, demographic changes and traffic development are the main factors
affecting the rapid development of this economic activity is now rightly be called the biggest "industry"
in the world. This means that tourism peripheral socio-economic phenomenon has become a new form of
international relations, consumption and production, with a strong impact on all aspects of human life.
Therefore, many countries, particularly less developed countries and countries in transition such as
Macedonia in tourism see one of the possibilities for faster development of the economy. Tourism
services are usually produced and consumed simultaneously.
They are floating holiday destinations - leading destination - traveling from one port to another.
The aim is to explore international and transnational characteristics of modern tourism cruise. Cruise
tourism is a clear example of globalized tourism, nature of the development of tourism enterprises,
management, marketing, suggest that the industry is definitely transnational in its structure and
operations.

1. Beginnings cruise
The birth of the cruise industry began with the establishment of the shipping company in 1822,
with the line between England and the Iberian Peninsula. It won its first contract to transport mail in
1837, and from 1840 began shipping in Alexandria, Egypt, via Gibraltar and Malta. The company began
offering luxury cruise services in 1844, with advertising destinations such as Gibraltar, Malta and Athens
for customers from England, for which initial destination was the port of Southampton. These trips were
the first of its kind, and P & O Cruises is recognized as the oldest cruise line in the world.
The company later introduced krzhni trips to destinations such as Alexandria and Constantinople. It
was a period of rapid expansion in the second half of the 19th century, the commissioning of larger and
more luxurious ships and ever-expanding market. Known ships of that time are: SS Ravenna built in
1880, which is the first ship with a steel superstructure and SS Valletta built in 1889, which is the first
ship used light bulbs.
Some sources mention Francesco I, sailing under the flag of the Kingdom of the Two Sicilies
(Italy), the first cruise ship. It was built in 1831 and sailed from Naples in early June 1833, followed by a
major advertising campaign. In his honor prowl had nobles, princes and princesses from all over Europe.
Within just three months, the ship spent Catania, Syracuse, Malta, Corfu, Patras, Delphi, Athens, Smyrna,
Constantinople. However, the presence of the ship was restricted to the aristocracy of Europe and not for
commercial purposes. The first ship built exclusively for the luxury cruise ship is "Princess Victoria
Louise" from Germany, designed by Albert Ballin, general manager of Hamburg-America line. The ship
was completed in 1900.
Practice for luxury cruising spread more transatlantic routes. In the competition for passengers,
they offer more luxury, fine dining, and other services, and as the most famous example is the Titanic.
In 1896, there were three luxury ships for transport to Europe and North America, and in 1906 the
number increased to seven.
With the advent of large passenger aircraft in 1960, began the decline of intercontinental
passengers traveling with ships. Certain features of the older ships have made inappropriate cruise as high
fuel consumption, inappropriate cabins without windows, small common spaces as well as the inability to
enter shallow ports.

Figure 1. Titanic

2. Characteristics of the cruise industry

Cruising first established as passenger transport by high class ships on more ports in the US and
Caribbean. Today it is very efficient global business. Modern specialized ships - radically different from
cargo ships - now cruising is defined as a mixture of transport, travel and tourism services, filled with
leisure passengers who pay for the route. Unlike conventional forms of tourism, shipping transport is an
essential element of experience.
Cruise takes place on specific markets, each of which has its regional characteristics, but the most
common are the Caribbean and the Mediterranean. Cruise companies also guests offered new themes and
cruise lengths of travel to accommodate different models of passenger and demographic groups.
Cruises today take place in so-called "floating hotels" that are a lot of travelers with different
socio-economic status, on all five continents in order to ensure the satisfaction of cruise passengers.
2.1. Evolution of cruising: Today's trends confirmed the exceptional dynamism of cruise industry
and its great elasticity, so far from all economic, social, political, or any other crises that regularly affect
the tourism sector.
Stagnation does not occur even after the disaster of the Costa Concordia in 2012.
Despite the rising cost of insurance, and reducing yields, cruise companies have managed to gain
trust and more passengers. In 2014 the total number of passengers was 2.7% more than the number of
those who washed them in the previous year. While other industries, this would be a great achievement,
here we see that this growth means that 2014 is the year with the lowest increase in passenger numbers
over the last 19 years. Within the first 14 years of cruising the 21st century zebelezhan is admirable
growth.
A total of 21.6 million passengers were registered in 2014, the number has doubled over a decade
earlier, 10.5 million passengers sailed in 2004, and in 2000 registered only 7.2 million. Since 1990, more
than 196.4 million passengers wandering least two or more days and visited more than one port.
Following the long-term projections, it is expected the same factors contributing to the maintenance of
growth in 2018 expected total number of passengers exceeding 25 million for the first time in the history
of the cruise, and in 2024 went to 30 million passengers. Growth is associated with the renewal and
increase of the Navy ships, and supply of new ports, it is also associated with increased growth in the US
market, and continued growth in Europe and Australia and the rapid growth in China and the rest of Asia.

Diagram 1. World cruise passengers

 3. Corporate consolidation, brand differentiation
Significant consolidation in the industry cruise took place in 1980.
This process of consolidation has resulted in the creation of two core entities: Carnival Corporation
and Royal Caribbean Cruise, these corporations include over 80% of total market share within the
industry (2.Marti, 2005). Carnival Corporation owns Carnival Cruise, Netherlands - Lajner America and
Princess Cruise. In 2000, Carnival Corporation became the sole owner of the Costa Cruzes, the Italian
cruise line.
Royal Caribbean Ltd. - the company owns Royal Caribbean International. Momentum for these
acquisitions is a desire on the part of the larger corporations to expand the market. For example, Carnival
Corporation owns a diverse collection of cruise lines each of which is designed for a different market.
Corporate consolidation, certainly not unusual global phenomenon.
Despite consolidation within the global industry, brand identities and names of boats are often
stored. When Carnival Corporation acquired the Holland - America Lajnerot ships in the fleet of Holland
- America were renamed.
The acquisition of different brands by the corporation can also be part of a strategy to serve the
different national markets. For example, Carnival Corporation acquires Aida Cruz when undertaking
Princess Cruise in 2003. Aida Cruz serves German market. The brand has existed since 1993 and there is
every indication that Carnival Corporation plans to maintain the current brand, without changes.

4. Commercial expansion
Cruise has expanded in recent decades, mainly from services for wealthy clients to provide services
and entertainment for the middle class.
4.1. Economic factors: Journeys and travelers can be an important source of revenue for local and
even national economies. Journeys generated more than $ 42 billion to the US economy, only in 2012.
4.2. Customers and options: Most of the passengers flying in four to seven days.
Young people and families targeted by cruise companies for their marketing strategy, but also older
persons and pensioners as this category of customers gradually decreases. Summer is the busiest season
partly because students of all ages outside of the faculties and can not afford the trip.
4.3. New markets: While a number of companies for their cruise lines have focused primarily on
the Caribbean, more and more are looking for new markets and new destinations. The idea is to attract
foreign travelers and experienced American tourists who want to see new places. Local authorities often
stimulate cruise lines, because the presence of boats with tourists in small coastal cities mean a major
boost for the local economy.
4.4. Statistical data: cruise market provides jobs for millions of people around the world. The
tourism industry offers the best business opportunities in the fastest growing segment of travel and
vacation of all time. Statistics show that this type of holiday has achieved more than 2,100% increase
since 1970, more and more travelers who have become lifelong loyal customers of the main lines and
brand companies. Statistics show that nearly 40 new ships were built in the 80s, 80 debuted in the 90s,
and more than 100 were introduced in 2000. Data released by the American cruise industry in 2010 show
that there are 329,943 jobs allocated 15.2 billion US dollars salary. Between 2000 - 2010, the total
economic output generated by cruise spending in the US increased by 128% - or 16.6 billion dollars in
2000 to 37.9 billion in 2010.

Diagram 2. Profit growth of cruising(USA dollars)

By the end of 2016, we expect more than 17 new ships that can accommodate more than 41,000
passengers in this way will generate approximately US $ 3.4 billion in the industry for a cruise. Direct
consumption of crew and passengers of all ports worldwide is estimated at $ 19 billion, and the average
consumption per passenger per day is expected to be $ 215, $ 163 ticket price and $ 52 spending out of
the boat.
Top three cruise companies in 2014 Carnival Corporation, Royal Caribbean and NCL Norwegian
Cruise Line - they share almost 80% of passengers in the world and 72% of revenue in the industry for a
cruise.
The first two main ports: departure - Miami, Florida, and as the first destination - Nassau, Bahamas. Half
of all passengers on the main lines to begin a trip to one of the following three ports of Florida, Port
Canaveral, Fort Lauderdal and Miami, and New York terminals in Manhattan and Brooklyn.
Table 1. Cruise passenger in European countries 2010- 2013
Pax
Rank Country Pax movements % movements % Embarked %
(2010 ; in 000) share (2013;in 000) share pax share
(2013; in
000)
1 Italy 5 403 21.4% 6 970 22.4% 2 137 35.2%
2 Spain 4 911 19.5% 5 236 16.8% 1 298 21.4%
3 Greece 4 473 17.8% 4 601 14.8% 212 3.5%
4 Norway 1 793 7.1% 3 023 9.7% 40 0.7%
5 France 2 010 8.0% 2 410 7.7% 232 3.8%
6 Portugal 925 3.7% 1 138 3.6% 27 0.4%
7 UK 541 2.1% 866 2.8% 1 038 17.1%
8 Sweden 517 2.1% 529 1.7% 48 0.8%
9 Estonia 391 1.6% 509 1.6%
10 Denmark 529 2.1% 483 1.5% 224 3.7%
11 Benelux 193 0.8% 472 1.5% 96 1.6%
12 Finland 315 1.3% 429 1.4%
13 Malta 462 1.8% 378 1.2% 51 0.8%
14 Germany 210 0.8% 367 1.2% 565 9.3%
15 Gibraltar 319 1.3% 278 0.9%
16 Cyprus 271 1.1% 214 0.7% 50 0.8%
17 Ireland 177 0.7% 209 0.7%
18 Iceland 147 0.6% 204 0.7%
19 Poland 140 0.6% 95 0.3%
Other EU (+3) 161 0.8% 244 0.8% 34 0.6%
EU+3 23 888 91.9% 28 655 94.8% 6 052 99.7%
Other Europe 1 312 8.1% 2 530 5.2% 18 0.3%
Total 25 200 100.0% 31 185 6 070 100.0%

5. Category ships
Today, every continent and region of the country that owns the port can be visited by boat or
recreational cruise ship, including the most exotic, faraway places and lonely places. Here we will present
various types of ships designed for travel services and recreation on the seas, oceans, rivers and lakes
worldwide.
- Mainstream class - It is the most common and most popular type of boat market, known as
floating resorts designed and equipped to suit the needs of the majority of passengers. This class has a
capacity of 850 to 3000 passengers, meets all kinds of standard, good and services such as restaurants,
bars and pubs, nightclubs and discos, shopping centers, theaters, cinemas, galleries, museums, libraries,
casinos, personal care areas with gyms and spas, swimming pools and other sports facilities.

Figure 2. Mainstream cruise ship Figure 3. Mega cruise ship

- Mega cruisers - the constant increase in service demands Cruise follow in continuously building
larger ships that can accommodate more than 3,000 passengers. Mega vessels are a new class of cruise
ships.
 - Ocean Class - type of ship built to reach a high standard of conventional basis, with considerably
more rugged and resistant design structures to withstand the particularly harsh conditions of travel in
oceans around the world.

Figure 4. Ocean cruise ship Figure 5. Luxury cruise ship

- Luxury class - ships equipped with the most modern and technologically advanced nautical
systems, highest standards, luxury, meet the special demands of an exclusive clientele who are looking
for more exotic destinations around the world.
- Small boats - ships with a capacity of several hundred passengers offering more intimate and
relaxing experience of tourists in lesser known destinations.

Figure 6. Small cruise ship Figure 7. Adventure cruise ship

- Adventure Tours - designed and equipped to provide services that include visits to remote
destinations that are usually not accessible to larger ships.
- Expeditionary ships - specially designed ships, or ships or research icebreaker operated by
specialized companies that offer their customers an exclusive experience in remote destinations such as
Antarctica, Greenland and other hard to reach places.

Figure 8. Expedition cruise ship Figure 9. River cruise ship

- River cruise ships - have the capacity to no more than several hundred passengers and are
specially designed for sailing on rivers. Offer exciting experiences for nostalgic trips on rivers
such as the Amazon, Nile, Rhine, Seine, Volga, Mississippi, Yangtze, and many others
worldwide.

6. Safety of cruise ships

6.1. Security of Ships: Shipping accidents happen, but they generally uncommon. Ships in the
waters of the United States are regularly inspected by the Coast Guard of the United States for any
irregularities or safety issues that might be of interest. All boats (regardless of where they sail) work
according to international rules, known as safety at sea (SOLAS), which regulates as fire safety,
navigation assistance, health care and maritime security. When compared with other shipping forms of
transportation are coming to data indicating that the cruise has the most deaths per billion passenger
miles. In 2011, the last year for which data are available, industrial cruise mortality rate of 0.08
passengers compared to 0.8 for commercial air transport, 3.3. Passenger vehicle traffic and 11.9 Railways
United States.
6.1.1. Worst shipping disasters.
Carnival Triumph: ship sailing the four-day tour of the Caribbean became an eight-day nightmare
when an engine fire left the ship to sail in the Gulf of Mexico without electricity, air conditioning, and
without functioning septic system.
Carnival Splendour: in November 2011 two passengers were trapped by a fire engine. After three
days the ship with 4,500 passengers dragging is taken back to the bay of San Diego.
Costa Concordia: the Italian ship ran aground on a reef off the coast of Tuscany, Italy, in January
2012 and bent to one side. Than 4,200 passengers, 32 died and 64 were injured,
 Sheburn Spirits: In 2005, about 100 miles off the coast of Somalia, pirates attacked. The pirates
opened fire on him with automatic weapons and rocket-propelled grenades before the captain to change
course and escape. None of the 300 passengers aboard was injured, and the ship sailed to the Seychelles,
where it is repaired damage from the rocket.
Celebrity Mercury: more than 400 of the 2,600 passengers and crew on Mercury are infected by
the virus in 2010. The virus causing the urge to vomiting and other gastrointestinal diseases passengers
and crew aboard.
Norvezhian Dawn: at least 62 cabins were flooded when a 70-foot wave hit the ship in 2005,
about 300 passengers on the ship unloaded before, in Charleston after the storm passed.
SS Istlend: in 1915, only three years after the sinking of the Titanic, cruise Istlend to minimize
twisting in the harbor of downtown Chicago. More than 840 out of 2,500 passengers died in the crash.
Titanic "nepotonliviot vessel" hit an iceberg in the North Atlantic on its maiden voyage in 1912
and sank in the icy water, killing more than 1,500 of the 2,200 passengers and crew.
6.2. Occupant safety: Incidents related to personal safety are extremely rare. Secured data by the
Crusaders FBI in the first three quarters of 2015 there are two suspicious deaths of passengers, three
attacks on passengers resulting in bodily injury and nine sexual assaults on passengers ships of Carnival
Cruise, Holland America Cruise Norvezhijan Cruise, princess and Royal Karibijan Cruz lajner. Most of
the passengers on the cruise are abundant and potential targets of robbers, not to mention the considerable
amount of money and jewelry on the ship (casinos and shops), and there have been several attempts to
pirate attacks on ships such as the Sheburn Spirits and MSC Melody. While most companies have
generally avoided arming of the crew and guards for safety reasons, there are ships that have small arms
(usually submachine guns) that keep the bzbedni places accessible only captain who distributes at the
state party if necessary.
Passengers and crew members entering the ship checked with metal detectors to prevent the
smuggling of weapons and illegal items. Security is greatly increased by 11 September 2001 so that all
measures are similar to airport security. Another common concern to all potential tourists fear of falling
into the water, which is very unlikely. To maintain the security of the ship, companies pay enough
attention to security officers and cameras covering all parts. The ships apply the general safety rules, such
as not accepting drinks from strangers, awareness of surroundings, not walking in the room of strangers
and constantly locking the door of his own cabin.

7. Cruise Destinations
Cruise industry sells directions, not destinations, which means greater flexibility in the selection
of ports. The issue, cruise ports are divided into two categories. In the first category are the ports where
travelers begin and end their journey, and in the second category are the ports they visit along their route.
The choice of route is the result of several factors including potential earnings, the distance between the
ports (cruise ships can pass 200 nautical miles per night), brand positioning (exotic ports) satisfaction of
guests (customers - oriented industries), economic trends and market research, as well as assessment of
changes in income and demographics of customers. Cruise usually last for 7 days, with 3-4 stops of ports,
but there are some that last 10 to 21 days, those in remote routes.
Popular Cruise Regions: Caribbean - eastern, western and southern part of the Caribbean, Europe,
the Baltic countries and northern Europe, British Isles and Western Europe, Eastern Mediterranean,
Western Mediterranean, Greece, Italy, France and Spain, river cruises - Amazon Jangcenjang, rivers
across Europe, Nile rivers across Russia, the rivers across North America.

Figure 10. Cruise in southern Figure 11. Cruise on the Caribbean

Europe and the Mediterranean
 8. SWOT Analysis - Carnival Cruise lajner
Carnival Cruise operates mainly in North America, Britain, Germany, New Zealand, Spain, Brazil
and Australia. It is headquartered in Miami, Florida, and based in London, UK. The company operates 93
ships and was founded by Ted Arison in 1972.
1. Strengths
• Carnival Cruise has a market share of 47% in the UK, 68% in Italy, 51% in
Germany and 45% in France.
• Global presence.
• Strong consumer demand in Europe.
• A diverse staff.
• Diverse entertainment ships.
2. Weaknesses
• Hurricanes and other bad weather.
• Rising fuel costs.
• Financial reports in dollars, if the dollar will strengthen to reduce income.
• The majority of revenues nearly 52% of US customers.
3. Opportunities
• Increase the capacity of the European market by 37%.
• The plan larger cruise ships.
• Entered into an alliance with Costa Europe and UK travel company Thomson.
4. Threats
• Competition from Royal Caribbean Cruise and Star lajner.
• loopholes to avoid taxes.
• Bad voice in the media in 2009 when three passengers fell from ships.

9. Cruise in the future

Fifty years ago, no one imagined that he would build ships of 1,200 feet which can carry 5,000
passengers. And while the world today is excited by the innovation of the shipping industry and new
ships (Quantum of the Seas), people wonder how they'll look ships in the next 50 years. Here are some
examples of designs of ships in the future.
1. Sleek and Sexy: This boat or megajahta without much open space on the deck, could very
quickly travel from one port to another.

Figure 12. Sleek and Sexy, Figure 13. The Floating Island, Figure 14. The City
2. Floating Island: If you can not decide between a cruise and vacation on the island, this ship -
the island you can have both options in the game.
3. City: This inpresiven concept of Royal Caribbean - Central Park, appropriately called "Atlantis
II", and seem to be trying to compete on the size of Central Park.

Conclusion
Pleasure and romance of cruising holders were the beginnings of cruising in North America. Over
time, more and larger ships are built, the rise of mass - market cruise is accompanied by the emergence of
large, well-capitalized companies.
Ownership within the industry for cruising is becoming more concentrated.
Cruise companies seek autonomy from organizations and regulatory bodies that could potentially
limit the way they do business. The need for coordination and integration has become an important
element in international business.
The emergence of new circumstances will bring new changes in the sector, especially the issues of
a larger number of individuals, employees, can not be ignored. Improve the financial situation of low-
wage workers and more efficient management of unwanted by-products of mass consumption also will
 certainly have a great price, which may affect the increase in cost of services. International companies
will face a major challenge: to improve the working conditions of employees and in terms of the
environment, which is so often mentioned, and at the same time you are trying to ensure that the general
consumption and demand of services will remain available to all.

literature:
Velkoski S. (2008). Traffic and Tourism, Faculty of Tourism and Hospitality, Ohrid;
Koteski C. (2014). International tourist traffic, internal lectures for second ciklus-
FTBL;
Koteski, C. (2015). Traffic Tourism, review the script - UGD - FTBL;
http://www.repositioncruises.com/cruise-industry/#statistics, used on 08.07.2016;
http://www.cruisecritic.com/articles.cfm?ID=241, used on 08.07.2016;
http://cruiseline.com/advice/cruising-101/all-about-cruising/11-things-we-cant-wait-to-see-on-
quantum-of-the-seas, used on 08.07.2016.

Cane Koteski Associate Professor, University,, Goce Delchev "- Stip, Faculty of Tourism and
Business Logistics - Gevgelija – Macedonia. cane.koteski@ugd.edu.mk
Nicholas V. Dimitrov, Associate Professor, University,, Goce Delchev "- Stip, Faculty of Tourism
and Business Logistics - Gevgelija - Macedonia. nikola.dimitrov@ugd.edu.mk
Zlatko Jakovlev Associate Professor, University,, Goce Delchev "- Stip, Faculty of Tourism and
Business Logistics - Gevgelija - Macedonia. zlatko.jakovlev@ugd.edu.mk
Nikolcho Petrov graduate, University,, Goce Delchev "- Stip, Faculty of Tourism and Business
Logistics - Gevgelija - Macedonia. nikolco.petrov@ugd.edu.mk

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