MGMT 1035 - WEEK 8 ARTICLES

How have cruise costs decreased?

• economies of scale

• tax havens

• developed countries’ employees

Which ABC show began its 9-season run in 1977?

The Love Boat

What was the “Love Boat?”

MS Pacific Princess

How do mass market operators keep cruise prices low?

vessel & fuel = substantial cost
onboard expenditures = substantial revenue

What is the world’s largest passenger ship?

Icon of the Seas (7600 passenger + 2350 staff)

Who built the world’s largest passenger ship?

Royal Caribbean

What is the world’s largest cruise company?

Carnival

Who is the chief maritime officer of the world’s largest cruise company?

Bill Burke

What is the philosophy of the world’s largest cruise company?

only 1 team for every department

What did the cruise industry use before purpose-built ocean ships?

converted ocean liners made obsolete by jet travel in 1960s

How did Carnival respond to the pandemic as it was financially pushed to the brink?

sold/recycled older/smaller vessels

What was an indirect result of Carnival’s response to the pandemic?

expected to hit IMO greenhouse gas intensity reduction target by 2026

What does IMO stand for?

International Maritime Organization

How is the world’s largest passenger ship going green?

• clean liquefied natural gas

• coated hull (reducing water friction)

• shore power connection

• waste treatment

• desalination

How do cruise lines get around limits to get into certain places, saving energy & boosting revenue?

leased private islands close to Florida ports

Who flew who on the 1st passenger flight, in May 1908?

Wilbur Wright flew Charles Furnas

Where was the 1st passenger flight?

beach at Kitty Hawk, North Carolina (2000 feet)

What was the world’s 1st airline, founded in 1909?

DELAG

From where was the world’s 1st airline?

Germany

Who flew who in the 1st scheduled passenger service flight, in 1914?

Tony Jannus flew St. Petersburg Abram C. Pheil

What caused commercial flights carrying paying passengers to become commonplace, in the 1920s?

purpose-built multi-engine airplane Lawson C-2

How did 1920s aircraft fly, and why did they operate in these ways?

• frequently land due to fuel

• fly at low altitude due to unpressurized cabin

What were some effects of 1920s aircraft flight?

• cold

• long

• noisy

• turbulent

• expensive

What did many airlines do to reduce anxiety & tend to airsickness?

hired nurses

What did Qantas operate in 1935?

its 1st international passenger flight (Brisbane, Australia → Singapore → Britain)

What improved aircraft was introduced in 1935?

propeller-driven airliner Douglas DC-3

What caused commercial aviation development to slow during the 1940s?

WWII

What aircraft featured the 1st pressurized cabin?

Boeing 307

Who operated the 1st pressurized cabin aircraft?

Pan Am

What were some effects of pressurized cabins?

• higher altitude

• higher advertising expenditure

• farther destination

What airline was the 1st to fly worldwide?

Pan Am

What were some groundbreaking industry changes by the 1st airline to fly worldwide?

• added jet aircraft

• utilized computer reservation

What was the 1st supersonic aircraft?

Concorde

What was 1 of the 1st airlines to offer budget flight by adjusting inflight offers?

Laker Airways

Who founded Laker Airways, in 1966?

Freddie Laker

From where was Laker Airways?

Britain

How did Laker Airways offer low fares?

reduced service (e.g. free meal)

How did Laker Airways reduce fuel & engine wear?

• reduced thrust take-off

• faster climb

What happened to Laker Airways in the 1980s recession?

went bankrupt

What is the world’s largest low-cost carrier?

Southwest Airlines

From where is the world’s largest low-cost carrier?

America

What were some ways airlines retained luxurious service?

• first-class

• onboard bar

• exclusive lounge

What were 2 budget airlines that launched during the 1980s/1990s?

• EasyJet

• Ryanair

What were 9/11’s effects on air travel?

increased airport/cockpit security

What are the 3 strands in modern resort history?

• living by seaside

• spa

• all-inclusive resort

To whom does seaside living trace?

Romans

What was the 1st German resort on the Baltic?

Heiligendamm, Mecklenburg

What made seaside resorts easily accessible from the city, by the 19th century?

railways

From where does “spa” come?

Romans’ bath complex in Belgium town

What was the most developed Europe country, in the 1930s?

Britain

What did Britain’s Butlin’s have in the 1930s?

holiday camp

What founded the modern all-inclusive resort concept, in 1950?

Club Med, France

What is the holdup problem?

reluctance to enter contract due to uncertainty about whether a party will unfavourably revise

What is the America airport business model?

far-away shops gouge because restaurants are too expensive

What is the Europe airport business model?

nothing costs more than regular price

What does the all-inclusive model promise?

fixed price

*What is cross-subsidization?

offsetting service cost with service revenue

What is 1 reason resorts like all-inclusive deals?

receive lump payment, customer goodwill

What do critics say about Caribbean enclosures?

pander to racist stereotypes about people needing comfort zone without local distraction

Where does majority of resort revenue go?

• dividends

• flown-in supplies

What is the bubble created by the majority of resort revenue?

North American/European existence in foreign geography

What are some solutions to a colonial vacation model?

localize

• build supply chain

What is the Asian gambling center?

Macau