MGMT 1035 - WEEK 8 ARTICLES

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How have cruise costs decreased?

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1

How have cruise costs decreased?

  • economies of scale

  • tax havens

  • developed countries’ employees

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2

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

The Love Boat

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3

What was the “Love Boat?”

MS Pacific Princess

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4

How do mass market operators keep cruise prices low?

vessel & fuel = substantial cost
onboard expenditures = substantial revenue

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5

What is the world’s largest passenger ship?

Icon of the Seas (7600 passenger + 2350 staff)

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6

Who built the world’s largest passenger ship?

Royal Caribbean

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7

What is the world’s largest cruise company?

Carnival

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8

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

Bill Burke

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9

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

only 1 team for every department

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10

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

converted ocean liners made obsolete by jet travel in 1960s

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11

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

sold/recycled older/smaller vessels

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12

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

expected to hit IMO greenhouse gas intensity reduction target by 2026

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13

What does IMO stand for?

International Maritime Organization

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14

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

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15

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

leased private islands close to Florida ports

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16

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

Wilbur Wright flew Charles Furnas

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17

Where was the 1st passenger flight?

beach at Kitty Hawk, North Carolina (2000 feet)

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18

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

DELAG

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19

From where was the world’s 1st airline?

Germany

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20

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

Tony Jannus flew St. Petersburg Abram C. Pheil

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21

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

purpose-built multi-engine airplane Lawson C-2

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22

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

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23

What were some effects of 1920s aircraft flight?

  • cold

  • long

  • noisy

  • turbulent

  • expensive

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24

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

hired nurses

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25

What did Qantas operate in 1935?

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

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26

What improved aircraft was introduced in 1935?

propeller-driven airliner Douglas DC-3

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27

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

WWII

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28

What aircraft featured the 1st pressurized cabin?

Boeing 307

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29

Who operated the 1st pressurized cabin aircraft?

Pan Am

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30

What were some effects of pressurized cabins?

  • higher altitude

  • higher advertising expenditure

  • farther destination

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31

What airline was the 1st to fly worldwide?

Pan Am

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32

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

  • added jet aircraft

  • utilized computer reservation

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33

What was the 1st supersonic aircraft?

Concorde

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34

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

Laker Airways

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35

Who founded Laker Airways, in 1966?

Freddie Laker

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36

From where was Laker Airways?

Britain

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37

How did Laker Airways offer low fares?

reduced service (e.g. free meal)

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38

How did Laker Airways reduce fuel & engine wear?

  • reduced thrust take-off

  • faster climb

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39

What happened to Laker Airways in the 1980s recession?

went bankrupt

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40

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

Southwest Airlines

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41

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

America

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42

What were some ways airlines retained luxurious service?

  • first-class

  • onboard bar

  • exclusive lounge

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43

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

  • EasyJet

  • Ryanair

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44

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

increased airport/cockpit security

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45

What are the 3 strands in modern resort history?

  • living by seaside

  • spa

  • all-inclusive resort

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46

To whom does seaside living trace?

Romans

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47

What was the 1st German resort on the Baltic?

Heiligendamm, Mecklenburg

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48

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

railways

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49

From where does “spa” come?

Romans’ bath complex in Belgium town

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50

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

Britain

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51

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

holiday camp

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52

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

Club Med, France

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53

What is the holdup problem?

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

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54

What is the America airport business model?

far-away shops gouge because restaurants are too expensive

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55

What is the Europe airport business model?

nothing costs more than regular price

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56

What does the all-inclusive model promise?

fixed price

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57

*What is cross-subsidization?

offsetting service cost with service revenue

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58

What is 1 reason resorts like all-inclusive deals?

receive lump payment, customer goodwill

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59

What do critics say about Caribbean enclosures?

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

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60

Where does majority of resort revenue go?

  • dividends

  • flown-in supplies

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61

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

North American/European existence in foreign geography

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62

What are some solutions to a colonial vacation model?

localize

  • build supply chain

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63

What is the Asian gambling center?

Macau

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