Author Question: Why did cruise line capacity grow so fast during 2000-2006? What will be an ideal response? (Read 104 times)

AEWBW · **on:** Sep 11, 2019

Question 1

Which one of the following major segments of the travel industryairlines, hotels, cruise lines, tour operators, or destinationsdo you feel will probably grow most rapidly in the future? Explain.

What will be an ideal response?

Question 2

Why did cruise line capacity grow so fast during 2000-2006?

What will be an ideal response?

zenzy · **Reply #1 on:** Sep 11, 2019

Answer 1

Cruise lines and gaming will probably experience the most growth in the future. The number of people who plan to cruise is about double that of the number who have cruised. And, high levels of trip satisfaction among cruisers result in good word-of-mouth advertising to help ensure future growth. Rapid increases in new ships coming online during some years can cause a temporary glut in the marketplace, but marketing executives know how to fill the empty space. Gaming also has not reached its potential, especially overseas, in terms of the number of persons who want to get involved, and new hotels still pop up in Las Vegas. Local and state governments continue to approve new commercial casinos and Indian gaming is also growing. The primary message, however, is that almost all parts of travel will grow in the foreseeable futurepopulation is increasing, and more people from other countries are able to afford travel. Destination management organizations, tour operators, airlines, hotels, ground operators, restaurateurs, and gift shop owners will all feel their boats lift from this rising tide of leisure travel.

Answer 2

Given the lag time between realizing a need for more ships and having them delivered, the 1990s represented a catch-up time for supply in reaction to the rapid demand growth of the 1980s.