Cruise Ship - Operators and Cruise Lines

Operators and Cruise Lines

Operators of cruise ships are known as cruise lines. Cruise lines have a dual character; they are partly in the transportation business, and partly in the leisure entertainment business, a duality that carries down into the ships themselves, which have both a crew headed by the ship's captain, and a hospitality staff headed by the equivalent of a hotel manager.

Among cruise lines, some are direct descendants of the traditional passenger shipping lines, while others were founded from the 1960s on specifically for cruising. The business is extremely volatile; the ships are massive capital expenditures with very high operating costs, and a slight dip in bookings can easily put a company out of business. Cruise lines frequently sell, renovate, or simply rename their ships just to keep up with travel trends.

A wave of failures and consolidation in the 1990s has led to many lines existing only as "brands" within larger corporations, much as a single automobile company produces several makes of cars. Brands exist partly because of repeat customer loyalty, and also to offer different levels of quality and service. For instance, Carnival Corporation owns both Carnival Cruise Lines, whose former image were vessels that had a reputation as "party ships" for younger travelers, but have become large, modern, and extremely elegant, yet still profitable, and Holland America Line, whose ships cultivate an image of classic elegance. In 2004, Carnival Corporation had merged Cunard's headquarters with that of Princess Cruises in Santa Clarita, California so that administrative, financial and technology services could be combined, ending Cunard's history where it had operated as a standalone company (subsidiary) regardless of parent ownership. However, Cunard did regain some independence in 2009 when its headquarters were moved to Carnival House in Southampton.

Some cruise lines have specialties; for example, Saga Cruises only allows passengers over 50 years old aboard their ships, and Windstar Cruises only operates tall ships. Regent Seven Seas Cruises operates medium-sized vessels—smaller than the "megaships" of Carnival and Royal Caribbean—designed such that 90% of their suites are balconies. Several specialty lines offer "expedition cruising" or only operate small ships, visiting certain destinations such as the Arctic and Antarctica, or the Galápagos Islands.

Currently the five largest cruise line operators in the world are Carnival Corporation & plc, Royal Caribbean Cruises Ltd., Star Cruises (which owns 50% of Norwegian Cruise Line, NCL in its own right is the third largest line), MSC Cruises, and Louis Cruise Lines. Louis Cruises has largerly grown its fleet through purchasing older second- or third-hand ships, while the other four operators have largely constructed their own vessels and combined own the majority of the "megaships".