Cruises < Transportation And Travel

Cruise business is a capital rich investment. Capital rich investments have a hibernating period during this hibernating period capital needs to be put into the business without expecting returns from the business. Generally many businesses turn or return even during their first year of business but in cruise business you may need to wait for at least 4-5 years after which you might float even depending upon your interest rates, human resources, marketing and advertising, sales, insurance fees, etc. In cruise travel business you need to understand that cost to acquire and maintain a cruise is much more pronounced. Maintenance of cruise is crucial because thousands of passenger’s life is at stake and many developed countries do not give civilian travel permit if cruise is not maintained according to standards. There are various venture capitalists and banks that are willing to take calculated risk based on your project report.

Insurance is very much required in cruise business because it protects the structure and reduces the risk of operating the cruise. Insurance rates depend upon your cruise route. Some maritime routes are known to be very dangerous and the insurance rate certainly goes up for these routes. Some financers need insurance before financing for the cruise. There are various types of insurances which you need to write for the cruise, good consultation should be sought out to reduce risk of this travel business. Insurance is also offered on passengers and this premium is reflected on the cost of ticket.

Various international port permits are arranged by your travel consultant on your cruise only thing you need to have is passport. If you want to start up small then there are many routes and destinations which are short which may provide you lower risk. Cost of ship gets reduced if you opt for short term routes and lower risk. Remember that cruise business is increasingly preferred by many tourists as a safe heaven due to lower risk and wide range of benefits. Sales and growth rate is good which is benefiting the cruise tourism industry. Entry of new players is moderate in high end segment but new players are entering into small scale tourism industry due to lower risk and faster returns in this travel business.

New entrants can also look into transportation of people from one destination to other destination. Still many people depend upon cruises for transportation from one destination to other luxuriously. In 1993 Caribbean tourists were estimated at 2.3 million and the number is growing at a healthy rate. Approximately 14 million tourists cruised on a cruiser in 2005.

Some of the major established names in cruise industry are Royal Caribbean international, Carnival Corporation and Star cruises. There are several other players such as Disney cruise line, celebrity cruises, etc. Caribbean, Miami, US Virgin Islands, Puerto Rico, Jamaica, St. Maarten, etc are some of the most sought out destinations for most tourists. Also most cruises ply between these routes and for UK liners and cruises Barbados is a stopping point for them. There are three major manufacturers which manufacture cruise ships they are STX Europe of Norway, Meyer Werft of Germany and Fincantieri of Italy. These three cruise ships builders constitute majority of the fleet existing and sailing. American tourists and American islands are very much sought out by the liners and tourists alike.

There are various ways by which an operator can benefit monetarily such as issuing tickets, hosting games, offering private space for high profile clients, food and wine, exclusive halt for high profile clients on private islands, poker games, snorkel, luxury suites, presidential suites, etc. These liners also get profitable from third party services such as hotels etc when they halt. Duty free shopping is one important source of revenue to liners as customers save their selves from double taxation they tend to shop more. Remember there are many environmental rules and regulations from which permissions needs to be obtained. Security on the liner is a prime concern.

Related business categories in mast directory

• Cruises
• Holiday Services
• Lodging
• Logistics
• Taxi Services
• Tour Operators
• Travel Agents
• Vehicles
• Vacations

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