Chapter 10

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Information about Chapter 10

Published on November 6, 2007

Author: Brainy007


Hospitality Today Introduction to Restaurant and Hotel Industry :  Hospitality Today Introduction to Restaurant and Hotel Industry RHM 175 Chapter 10 Floating Resorts: The Cruise Line Business:  Competencies: Summarize the beginnings of the cruise industry, describe the birth of modern cruising, and describe the cruise industry of today. Explain how a cruise ship is organized. Explain how Seabourn Cruise Line got started, and describe its approach to providing quality service to passengers. Chapter 10 Floating Resorts: The Cruise Line Business All about Cruises:  Today – there are over 175 cruise ships that depart from 23 US ports. Ships are floating vacation resorts, some carrying as many as 3,800 guests. Cruises generate revenues of $13 billion annually. Usually managed by hotel managers. Salaries are compatible with land based resorts. Cruise lines are still considered to be in their infancy. Only 15% of Americans have ever been on a cruise. All about Cruises Page 282 All about Cruises:  However, it is the fastest growing of all segments in the hospitality industry. Currently, it generates the highest rates of customer satisfaction. 84% of all passengers report being very satisfied or extremely satisfied. 74% of all passengers report it a good or excellent value for the money. All about Cruises Page 282 Early Cruises:  Writings from William Makepeace Thackeray Toured Greece, the Holy Land, and Egypt in 1844 He reported on being seasick; complained of prices, bugs, lack of pretty women and beggers The first American-origin cruise was in 1867 on a paddle-wheel steamer known as the Quaker City Early Cruises Page 282 - 283 Transportation and Immigration:  Immigration in the U.S. was an open door Began with the paddle-wheel boats but it was slow Boats were restructured to become larger, faster and some thought “unsinkable” Titanic sank on April 15, 1912 Had 2,228 passengers and crew 1,523 perished 20 lifeboats were on the Titanic. Each lifeboat could hold up to 40 passengers. Transportation and Immigration Page 283 - 284 New Passengers and New Directions:  WWI had created an interest in Europe Cruises changed from “transportation” to “the fashionable thing to do” In 1929, The Great Depression put a halt to long voyages. Short trips were established (Nova Scotia) The U.S. began building ships and set record time with The United States. In 1958, cruise ships declined secondary to Pan American World Airways New Passengers and New Directions Page 284 - 285 The Birth of Modern Cruising:  The early 1960’s, entrepreneur Leslie Frazer marketed and chartered two ships as “cruises”. In 1966, Ted Arison, started Norwegian Caribbean Line (NCL) and transform South Florida’s cruise industry. By the 1970’s, cruise ships went to a variety of destinations In 1977, the Princess was used for a television show called “The Love Boat”. The Birth of Modern Cruising Page 285 - 286 Carnival is Born:  In 1971, NCL management partnership broke up. Ted Arison, again, created the “Fun Ships”. The ship was actually considered the destination. By 1975, the line was profitable and started adding more ships to the Carnival Fleet. Carnival is Born Page 286 - 287 The Cruise Industry Today:  Divided into four market segments by the Cruise Line International Association. Largest: Contemporary/Value Segment Popular-priced, mass-market lines Premium Cruise Lines Charge more, carry fewer passengers Specialty Lines Single destination The Cruise Industry Today Page 287 - 289 The Cruise Industry Today:  Three GIANT Players in the industry: Carnival Royal Caribbean International (which also owns Celebrity Cruise Lines) Singapore-based Star Cruises (the largest cruise line in Asia, also owns NCL) The average cruise passenger is 51, has a household income of $64,000 and pays $200 a day for an all-inclusive vacation includes a cabin, four to five meals a day, and entertainment. The Cruise Industry Today Page 287 - 289 Cruise Ship Organization:  See Exhibit 1 on Page 290 All ships follow this General Organizational Chart Cruise Ship Organization Page 289 - 291 Cruise Ship Organization:  THE CAPTAIN All sea vessels are operated under maritime laws. It is under command of the Captain. Make sure all policies and rules are followed. Can enforce laws granted by the country in which the ship is registered. Must comply with laws of the ports they sail from and to. Second in command: Chief Officer Cruise Ship Organization Page 289 - 291 Cruise Ship Organization:  THE HOTEL MANAGER Has the largest staff of any other department. Has no marketing department nor sales. All marketing and financial projects are done by way of land based facilities Cruise Ship Organization Page 291 - 293 Cruise Ship Organization:  OTHER OFFICERS The Purser: The ships banker, information officer, human resources director, and complaint handler. Second in command to the Hotel Manager. The Purser staff also handles lost luggage, broken plumbing, cabin upgrades. No checks are accepted at sea. The Purser holds all money on the ship – usually in a large safe. Cruise Ship Organization Page 293 – 302 Cruise Ship Organization:  OTHER OFFICERS The Food and Beverage Manager: Responsible for feeding the guest and staff and meeting all expectations of the guest. Does not deal in financial matters regarding food and beverage facilities. Dining areas can only hold 40% of the passengers at one meal. They stagger meal times. Cruise Ship Organization Page 293 – 302 Cruise Ship Organization:  OTHER OFFICERS The Chief Housekeeper: Responsible for cleaning of all passengers rooms and interior areas on the ship, passenger laundry, dry cleaning, all linens, and crew’s uniforms. Staff depend heavily on tips for income. Housekeeping busiest day is turnaround day. Room turnover can be as soon as two hours. Cruise Ship Organization Page 293 – 302 Cruise Ship Organization:  OTHER OFFICERS The Cruise Director: Usually very visible. Is responsible for the quality of the entertainment. This department includes entertainers, musicians, and children’s counselors, and direct all of the passenger-entertainment activities. This department must sell and coordinate the shore excursions. Cruise Ship Organization Page 293 – 302 Cruise Ship Organization:  OTHER OFFICERS The Physician: Is on all cruise ships along with one nurse. The Physician has a state of the art facility to practice medicine along with a morgue. Physicians usually treat more crew members than guest. All critically ill patients must be evacuated out by helicopter or at the next port. Cruise Ship Organization Page 293 – 302 Seabourn: A Case Study in Quality Management:  Seabourn: A Case Study in Quality Management Page 302 - 303 Seabourn: A Case Study in Quality Management:  Seabourn: A Case Study in Quality Management Page 302 - 303 A new facility that only accommodate 204 people, all of them had suites of 277 – 575 square feet. Built to serve the high end passengers. Built to provide service of high crew/high passenger ratio – 2 crew for every 3 passengers. Seabourn: A Case Study in Quality Management:  Seabourn: A Case Study in Quality Management Page 302 - 311 Emphasizing Service Service Delivery Systems Operations Procedures Passenger Comments Everyone is involved Opportunities Problems Customized Service Empathy Seabourn: Emphasizing Service:  Seabourn: Emphasizing Service Page 303 - 304 There goal is to “Win there hearts” Receive questionnaires before the trip, during the trip and after the trip No lines, No waiting, No formalities Provide guest with monogrammed stationary, a bar and a refrigerator (stocked with their favorites), and a complimentary sight-seeing tour. Room service 24 hours a day, gyms, saunas, steam baths, beauty salons, whirlpools, swimming pools, jogging track, and library. Seabourn: Service Delivery System:  Seabourn: Service Delivery System Page 304 Goal 1 – Take care of your employees Goal 2 – Take care of your guests Anyone that receives a guest complaint “owns” that complaint. Promotes teamwork and service to co-workers. Communicates guest problems to fellow employees and management. Take responsibility for your own behavior. Don’t be afraid to make a mistake – if you are trying to do your job better! Seabourn: Operations Procedures:  Seabourn: Operations Procedures Page 304 - 305 Very detailed and specific………. See Page 305 Seabourn: Passenger Comments:  Seabourn: Passenger Comments Page 305 - 306 The have waiters’ meeting and read all comment cards aloud. All employees chime in with “pros” and “cons” and how could this be changed to meet customer/guest expectations. Seabourn: Everyone is Involved:  Seabourn: Everyone is Involved Page 306 - 307 Everyone must be involved in producing the product. Then it becomes theirs, and they own it. Training is continual and never ending. Seabourn: Opportunities:  Seabourn: Opportunities Page 307 - 308 Cruise ships are floating hotels. No tipping permitted. Creating everlasting relationships between cruise personnel/industry and individuals. Creating ongoing relationships between cruise personnel/industry and nations. Seabourn: Problems:  Seabourn: Problems Page 308 - 309 Majority of the problems occur during seaside excursions. Problems with transportation Problems with tours Problems with resources Problems with relations Seabourn: Passengers Expect Customized Service:  Seabourn: Passengers Expect Customized Service Page 309 - 310 Give the customer what they expect or more Provide customized service “the company relies on highly trained and motivated people, people who are motivated not by money, although they are well paid, but rather by a genuine pride in what they do.” Seabourn: Empathy is an Important Factor:  Seabourn: Empathy is an Important Factor Page 310 - 311 You gotta have Heart. Empowerment is a must. Lessons to be learned but hard to accomplish: Affluent guests buy experiences Employees must be respected Employees should be involved in shaping the product and empowered to deliver it

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