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Med Cruise Development Course 3/3/2015 Med Cruise Development Course February 24, 2015 1 3/3/2015 Worldwide projects Worldwide Experience • NORTH AMERICA • INTERNATIONAL • PORT EVERGLADES, FL • SINGAPORE ICT • PORT OF MIAMI, FL • HONG KONG KAI TAK • PORT OF TAMPA, FL • ST. PETERSBURG, RUSSIA • PORT CANAVERAL, FL • PORT OF COPENHAGEN • CITY OF KETCHIKAN • PORT OF NICE • CITY OF JUNEAU • BERMUDA • ENSENADA, MEXICO • DUBROVNIK, CROATIA • PORT OF SAN FRANCISCO, CA • PORT OF SAN JUAN • PORT OF SAN DIEGO, CA • COZUMEL (VARIOUS) • LOS ANGELES, CA • PORT OF CARTAGENA • VANCOUVER PORT AUTHORITY • ARUBA PORTS AUTHORITY • NEW YORK CITY • PORT OF MALAGA • BOSTON (MASSPORT), MA • PORT OF GRENADA • NEWFOUNDLAND AND LABRADOR • PORT OF VALENCIA • MARYLAND PORT AUTHORITY • PORT OF MUMBAI • CITY OF NORFOLK, VA • EGE PORT OF KUSADASI • PORT OF NEW ORLEANS, LA • CRUISE LINES • PORT OF CORPUS CHRISTI, TX • CARNIVAL CORPORATION • PORT OF PHILADELPHIA, PA • DISNEY CRUISE LINES • KEY WEST • HOLLAND AMERICA • PORT OF PALM BEACH, FL • RCCL • NEW JERSEY PORT AUTHORITY • NCL • HALIFAX PORT AUTHORITY • MSC • STATE OF HAWAII • TERMINAL OPERATORS • ASSOCIATIONS • P&O PORTS • MED CRUISE • HUTCHISON PORT HOLDINGS • ACCA • ICTSI • CRUISE BC • DUBAI WORLD 2 3/3/2015 Course overview, Session 1 Interactive presentations and discussion Session 1 –Port operations and itinerary planning Welcome to cruising in 2025 –where will the industry be, and how do you fit? Homeport and port of call operations – technology revolution, are you ready? Itinerary planning –consumer demand, demographics and profitability Costa Diadema Captain Nicolò Alba –30 minute session Exercise 1: Itinerary planning (connecting the dots) Goal Increase… Cruise calls Passenger throughput Port and stakeholder revenues Economic impacts to the community Objective Gather tools to assist in achieving this goal! Understanding of cruise line methodologies and practices Future planning tools Understanding cruise line decision‐makers 3 1 Cruise passengers, 1995 –2014 Future of Cruise in 2025 and beyond 3/3/2015 4 3/3/2015 Top 25 worldwide attractions, 2014 Major cruise corporations worldwide capacity, 2014 5 3/3/2015 European cruise brand passenger capacity, 2014 Success factors • New products that generate sustained interest in cruising –New, exciting vessels, diverse on‐board products and services –New regions, itineraries and on‐shore product offerings • Converting land‐based resort guests into cruise passengers • High level of passenger satisfaction –Leading to repeat clientele and lower conversion costs • Adapt quickly to changing market conditions –Move a vessel to a new destination based on demand, operations cost, low shoreside profit options, other influences • Limited competition, reduced operational costs, and diversified revenues –Take advantage of brand fleet volumes in agreements & purchasing –Key is to make sure they do not compete against each other 6 3/3/2015 Cruise vessel deliveries and orders, 1990 –2020 Cruise vessel deliveries and orders, 2015 ‐ 2040 7 3/3/2015 Cruise growth, 2015 –2040 Cruise growth, 2015 –2035 8 3/3/2015 Regional competitive cruise deployments, 1997 –2014 Regional cruise berth capacity deployments, 2014 North / West Europe #4 Alaska Mediterranean #5 W. Coast / Mexico #2 Caribbean / Bahamas Asia & Australasia #1 #3 South America 9 3/3/2015 Top 10 cruise passenger sourcing markets, 2014 Population Global Passenger 5 Year Pct. Change Country/region (million) Share (+) USA 320 51.7% 3.75% United Kingdom & Ireland 61 8.1% 16.4% Germany 82 7.7% 80.5% Italy 58 4.0% 26.1% Australia / New Zealand 22 3.6% 2.70% Brazil 201 3.4% 1.3% Canada 33 3.4% 2.42% Spain 40 2.8% 20.7% France 62 2.4% 67.7% Scandinavia & Finland 19 1.6% 184.6% Cruise consumer market penetration, 30.7 million in 2025 Europe North America Pop: 515 million Pop: 350 million Cruisers: 10.3 million Cruisers: 14 million Penetration: 2.0% Penetration: 4.0% Asia Pacific Pop: 3.4 billion Cruisers: 3.4 million Penetration: 0.1% South America Australia Pop: 400 million Pop: 23 million Cruisers: 2.0 million Cruisers: 920,000 Penetration: 0.5% Penetration: 4.0% 10 3/3/2015 Regional cruise berth capacity deployments, 2025 North / West Europe #4 Alaska Mediterranean #5 W. Coast / Mexico #3 Caribbean / Bahamas Asia & Australasia #1 #2 South America Section questions Who are your competitors in the future? Who are your cruise line clients and what are their needs in 2025 & 2035? What is the future landscape of cruise at a global level? Where will the Mediterranean be compared to other cruising regions? 11 3/3/2015 2 operations Port Cruise port operations Homeport Meeting the needs and expectations of the cruise operator and passenger Operating models Port of call Maximizing positive impacts – minimizing costs Partnering to meet demands Future fit within a regional scheme Technology as an operations driver Differentiation through port operations What do the cruise lines want from you as a port? Cruise line and passenger satisfaction Operations costs vs. revenues 12 3/3/2015 Operations Port Fees Marine Servicing Security Shore Coaches Excursions & Taxis vessel Cruise 13 3/3/2015 Avg. passengers per ship by year of construction, 1999 –2019 Projected Percentage of Passengers per Ship, 2015 –2040 14 3/3/2015 Percentage of Ships Over 300 Meters, 2015 –2040 Design vessels Design Vessel 1 Design Vessel 2 Design Vessel Design Vessel 3 Type (small) (Panamax) (post‐Panamax) (super post‐Panamax) Passengers 200 – 1,500 2,000 to 2,600 2,500 to 4,000 5,400 plus Crew 450 850 1,200 +1,200 GRT / Displacement Up to 50,000 / + Up to 100,000 / + + 100,000 / + 50,000 + 150,000 / + 70,000 Tons 20,000 50,000 LOA (m) 125 to 250 275 to 300 300 to 345 350 plus Over 36 Beam (m) Up to 28 Up to 36 Over 40 (generally 40 to 50) Draft (m) Up to 6.5 Up to 8.5 8.5 to 10 +8.6 Air Draft (m) Less than 50 Less than 60 Up to 62 Up to 62 15 3/3/2015 Homeports Homeport passenger movements, >2,000 passengers DIS EMBARKATION EMBARKATION SEPARATION TIME 16 3/3/2015 Homeport passenger movements, 2,500 passengers DIS EMBARKATION EMBARKATION PASSENGER HOLDING Homeport passenger movements, 3,000 passengers DIS EMBARKATION EMBARKATION PASSENGER HOLDING 17 3/3/2015 Homeport passenger movements, 5,400 passengers DIS EMBARKATION EMBARKATION PASSENGER HOLDING Major terminal functions • Operations – Coordination marketing –Berth scheduling –Setup / handover Fiscal agent operations – Gangways (optional) – Traffic control • Maintenance –Routine Passenger stevedoring –Major services • Housekeeping (janitorial) • Security – Passenger agent security –Terminal • Fiscal agent • Marketing / business development • Parking • Ground handling & Stevedoring (usually separate stakeholders) 18 3/3/2015 Models marketing Fiscal agent operations Passenger stevedoring services agent security Management model, port operated • Operator paid on a per passenger basis • Minimum guaranteed annual income • Operator may have other operations as a percentage of income for: –Parking –Secondary Uses •Cruise fees •Non‐cruise fees –Other Income Clients •pays operator fees Owner •pays non‐operator fees • collects 100% profit Owner 19 3/3/2015 Lease model, private terminal operator • Annual payments to Owner • Covers all facility operations and maintenance –Major issues covered by owner • Minimal control –Use KPI’s to monitor •Cruise fees Clients •Non‐cruise fees •pays operator fees TO •Owner pays non‐operator fees • collects rent Owner Mixed model, owner operated • May contract out key functions (income vs. cost) – Maintenance –Security – Housekeeping –Parking • Less control / lower cost –Non‐essential functions •Cruise fees Clients •Non‐cruise fees •pays contractor fees Owner • collects 100% profit Owner 20 3/3/2015 standards Performance Performance standards Operational cycle – disembarkation 3.75 hours SHIP Operational cycle – embarkation 5 hours Time in terminal (disembarkation) –90% under 30 minutes Time in terminal (embarkation) –90% under 15 minutes PASSENGERS Queuing ‐‐ 90% under 5 minutes (except embarkation) 21 3/3/2015 Key performance indicator coverage •Total embarkation / debarkation times –GTA waiting –Walking distances (Curb to vessel) – Baggage drop off / pick up –Security screening – Check‐in – Gangway access – Baggage delivery •Other significant KPIs – Financial –Safety / Security of passengers and staff – Cleanliness –daily and overall maintenance – Satisfaction – meet & greet, experience, friendliness, etc. Approach • Identify the standards of operations • What Key Performance Indicator’s (KPIs) should be implemented –If so, what are those standards for each? • Determine how each facility operates –Standards should be compromised based upon the facility limitations • Establish KPIs –Based upon operational model and division of responsibilities –Operational target or range –Service standards enforcement 22 3/3/2015 RCCL KPI’s –line measurement standards (sample) Standard * Measure Mitigation Plan Reporting Mechanism Guests should not exceed Special log for OA review Adjust security team staffing the entrance to the security meeting and GPS Vessel Turn to speed document check queue. 5 minute wait from Zone Lead will record daily Report if failure occurs (will and guest preparation to Security queue entrance to guest data. note max # of guests enter x-ray and processing (20 guests per exceeding the queue magnetometer machine. queue). entrance for each event) Add GPS staff to work queue Guests should not exceed Special log for OA review and prepare guests for the entrance to the check-in
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