An Application To Selling A Cruise Vacation Package Tourism Essay Example

An Application To Selling A Cruise Vacation Package Tourism Essay This paper seeks to discourse the construct of merchandise life rhythm use to sell sail holiday bundle merchandising in Flying On Travel Agent ( Hong Kong ) . First, the foreground of develop sail industry in worldwide and in Hong Kong is described and explicate the function of travel agent in selling the sail holiday bundle. Then the construct of merchandise life rhythm is introduced. Finally, a instance survey of Flying On Travel Agent ( Hong Kong ) is presented to exemplify the life rhythm of selling the sail holiday bundle. Cruising can be interpreted in many different ways and can include many different types of vass. The impression of cruising is best explained by mention to the definition of a sail ship ; vessel set abouting scheduled, deep H2O sails of two yearss or more with a rider capacity of 100 individuals or more ( Research Department Tourism Queensland ) . Another account about sail is a trip by sea on a line drive for leisure, remarkably docking at assorted ports during its journey ( Collins English Dictionary, 2008, ) . Cruise ships are non, like ferries, merely seen as a manner of conveyance. These ships are frequently a finish on itself, and can be typified as drifting hotels, or even drifting resorts ( Dowling, 2006 ) . We will write a custom essay sample on An Application To Selling A Cruise Vacation Package Tourism specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on An Application To Selling A Cruise Vacation Package Tourism specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on An Application To Selling A Cruise Vacation Package Tourism specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Nowadays, many travel agents sell a basic sail holiday bundle which is across-the-board. A sail holiday bundle includes revenue enhancements, port charges, airfare, cabin stay, repasts, and 24-hour room service. ( WTO ) Some of the travel agents given clients with extra merchandise offering of widening their trip either before or after the sail. This packaged merchandise normally includes extra dark corsets at a hotel in the embarking or debarking port. ( Neil Biehn 2006 ) Introduction The sail industry is one of the fastest-growing sections in the travel industry since 1980 the industry has had an mean one-year rider growing rate of 8.1 % . ( By: Miller, Richard K. ; Washington, Kelli, 2009 ) Harmonizing to WTO 2003, although the market portion of sails in the touristry market is little ( 0.6 % of the hotel beds offered worldwide ) , there still has unbelievable growing figures and has a high potency to develop. Harmonizing to B A ; A, rider carrying degrees could spread out from the present 13.2 million to between 19.3 and 30.1 million by 2020 ( see Figure 1 Projected Worldwide Passenger Levels, 2004 2020 Beginning: B A ; A 2004 ) . Figure 1 Projected Worldwide Passenger Levels, 2004 2020 ( Source B A ; A 2004 ) In Hong Kong, the rider degrees for conventional sails have expanded from about 8.5 million to 13.9 million between 1999 and 2005, during the same period, the Asia Pacific part accounted for between 5 % and 8.6 % of the worldwide market. ( B A ; A, 2005 ) Between 1999 and 2005, Hong Kong s typical rate of gaining control of the Asia Pacific conventional sail market ranged from 16 % to 30 % . ( Hong Kong Tourism Report Q1 2010 ) . The figure of cruise vas calls has increased from 409 to 1 051 ( Hong Kong Tourism Report Q1 2010 ) .over the same period. The explosive growing was the consequence of the sail industry redefining itself from a narrowly focussed niche merchandise to a broader-based, mass-market holiday experience. Besides the capacity with many big sail companies puting to a great extent in new ships ( Hayman, 1990 ; Peisley 1995 ) . Cruise ships have advance through a figure of developmental stages ; Amrik Singh ( 1999 ) from the little, 500 rider vass of the 1970s to the rise of the 3600 rider vass of the late ninetiess. See Figure 2 Development of Cruise Vessels ( Source: B A ; A, 2006 ) The capacity of the sail line industry increased from 41,073 positions in 1981 to 172.281 positions in 2001 at the one-year growing rate of 7.6 % .The sail capacity enlargement is expected to go on in the following 5 old ages from 189,441 positions in 2002 to 249,623 positions in 2006 ( CLIA, 2002 ) Time period Length ( m. ) Draft ( m. ) Pax Features of the Period 1960 155 11 500 Vessels acquired A ; refurbished. 1970 215 9.75 650 Standard concern theoretical account used with profitable consequences until the fuel crisis. 1980 245 9 1500 Change in concern theoretical account ; experimentation with larger vass and runing paths. 1990 275 8 2600 Larger vass going the finish. Shallower bill of exchanges. 1997 294 8 3600 Mega-vessels that are drifting metropoliss. Focus on maximising rider capacity. One-region vass non capable of Panama Canal Transit 2000 305 9 3000 Larger vas volume concentrating on making efficiencies with vas design, outside cabin development, vas services and flexible deployment. 2006 300+ 9 4000 Freedom category, 160,000-GT. Allows for increased onboard gross countries, largest vas in the universe position and big economic systems of graduated table. Following Coevals 335-425 9-11 5000+ Product and service led design ; new advanced Marine hull design to back up more above H2O construction. Separate flat towers, amusement zones and comfortss. Limited port deployment options. Figure 2 Development of Cruise Vessels ( Source: B A ; A, 2006 ) Between 2000 and year-end 2008, over 100 new ships were launched ( Travel A ; Tourism Market Research Handbook, 2009 ) . In Hong Kong, the major participants are Star Cruises, Costa Cruises, Princess Cruises and P A ; O Cruises ( Australia ) . Seven sail vass homeporting at Hong Kong in 2008, which include Costa Allegra ( from Costa ) , Star Pisces, Superstar Aqarius, Superstar Libra and Superstar Virgo ( all from Star Cruises ) and Rhapsody of the Seas ( from RCCL ) Due to the sail industry become more and more globalized, Hong Kong Government is besides pressing in front with developing Hong Kong as a major regional sail hub. It will finance the edifice of a sail terminus at the former Kai Tak airdrome. The first position is expected to get down operation in mid-2013. Most North American sail lines do non hold offices setup in the part so general gross revenues agents or travel agents are appointed to stand for them. Harmonizing to Cruise Lines International association ( CLIA 2008 ) merchandising sails is a good concern. The bulk of sails ( around 74 % ) are still sold by travel agents ( Figure 3 Travel Agent Usages to Book Cruise Vacations. Cruise lines still pay committees of 10 % or more. Figure 3 Travel Agent Usages to Book Cruise Vacations ( CLIA 2008 ) Due to the above grounds, there is a high potency to develop sail industry. Therefore, look into the merchandise life rhythm of selling sail holiday bundle is an of import scheme to categorise and expose investing cost hazards, physical factors and information systems needs in different phases. The Product Life Cycle Butler ( 1980 ) was the first to qualify the development of the tourer industry by the construct of the life rhythm merchandise, following the theories of Vernon ( 1966 ) on the international merchandise rhythm. The merchandise life rhythm theory provides an of import position for the preparation of schemes, because each stage of the life rhythm is believed to hold distinguishable features that offset the operation of a concern and accordingly marketing plan ( Avvari V. Mohan, K.N. Krishnaswamy 2006 ) . It says that the development of gross revenues and net incomes of new developed merchandises shows a clear form. Although there are different theories presented the rhythm into different phases such as Reid ( 1989 ) present five phases, where Cokayne ( 1991 ) nowadays into three phases, Despite the non-representativeness of this sample, it is robust plenty to let one major decision that the classical bell-shaped merchandise life rhythm may be a reasonably common form. ( David F. Midgley ) The classical bell-shaped merchandise life rhythm involved four phases which include Introduction, Growth, Maturity and Decline. In this paper, we will utilize the classical bell-shaped merchandise life rhythm ( Figure 4 Life rhythm of merchandise Gross saless and Net income. Beginning: Alan Marklew 1985 ) to look into the phase of selling sail holiday bundle by Flying On Travel Agent ( Hong Kong ) Figure 4 Life rhythm of merchandise Gross saless and Net income ( Beginning: Alan Marklew 1985 ) Introduction Phase In this phase, new merchandise launched and the rate of gross revenues volumes to get down easy. The selling attempt is focused on placing market demands and specific merchandise characteristiics. ( Enis et al. , 1977 ) . At this phase, significant selling investing in countries such as advertisement and gross revenues promtoion ; hence prodcuts are normally lossmakers for most ( Alan Marklew, 1985 ) . The end of srategies is s to raise the gross revenues from zero to some predetermined degree. Growth Stage In this phase, consumers clearly feel that this merchandise will profit them in some ways and they accept it, the administration will see a period of rapid gross revenues growing. The sum of net income and figure of gross revenues show a strongly betterment. The major elements of marketing programme at this stage is to set up the trade name, spread out distribution, differentiat merchandise, offer merchandise discrepancies. ( Hambrick et al. , 1982a ) . The selling scheme is an of import factor in this stage, which involved merchandise betterments, add-on of discrepancies, and intensive and extended distribution. Besides, increasing gross revenues attempts and advertisement for trade name image are besides of import. ( Hofer, 1975 ) The handiness of merchandises might be communicated to prospective visitants through promotion or promotional activities, viz. in forming of import events. ( Goncalves, Vitor F. Da C.Aguas, Paulo Manuel Roque Fall97 ) . Maturity Stage In this phase, gross revenues slow down as the merchandise gross revenues reach peak as most of the possible buyers of a merchandise have been converted into clients. The rate of growing in gross revenues slows down increasingly and so degrees off. Harmonizing to Hofer ( 1975 ) , in this phase changes in market scheme are required. Company tries to keep market portion and gross revenues and at the same clip happen new markets. It is of import to increasing merchandise line ( Hambrick et al. , 1982 ) , increased advertisement, increasing complementary merchandises, consolidating distribution. Decline Phase Gross saless start to worsen either because of the addition of rivals or consumer gustatory sensations change. Net income becomes more a challenge of production/distribution efficiency than increased gross revenues Identifying the Product Life Cycle phases Several writers have proposed some designation methods to place the phase of the merchandise. For illustration, Reid ( 1989 ) , states that historical information with clip series, volume, sum, monetary values, consequences are need for designation. Levitt ( 1986 ) proposed to find what comes following in order to set up current place. Avvari V. Mohan, K.N. Krishnaswamy ( 2006 ) used the market programme variables as an index. There are 30 variables of MP were identified such as utilizing gross revenues force attempts, selling outgos, promtion innovative, new markets appear, gross revenues recognition, market cleavage, trade name consciousness etc. Doyle ( 1976 ) use different characterisitcs appear in the life rhythm phases to sort the location of phase. In his classfiicatio, he use the figure of gross revenues, sum of profiles, Cash flow, clients features, rivals, market scheme, market costs, selling accent, pricing, distribution and merchandise. ( Figure 5 The worlds of the mercha ndise life rhythm Doyle 1976: ) Product Life rhythm Introduction Growth Adulthood Decline Features Gross saless Low Fast Slow to worsen Worsening Net incomes Negligible Extremum Degrees Get down to worsen Worsening to zero Cash Flow Negative Moderate High Low Customers Early adoptive parents Mass market Mass market Dawdlers Rivals Few Turning Many met excessively challengers Taking market Cardinal Actions Scheme Expand market Market incursion Defend portion Productiveness Selling cost High High Falilng Low Marketing Emphasis Merchandise consciousness Brand Preference Brand trueness Image care Pricing High Maintain Maintain/increase Rising Distribution Patchy Intensive Intensive Selective Merchandise Basic Improved Broaden postion Apologize Figure 5 The worlds of the merchandise life rhythm The state of affairs of selling sail holiday bundle by Flying On Travel Agent ( Hong Kong ) This subdivision describes the development of the state of affairs of selling sail holiday bundle by Flying On Travel Agent ( Hong Kong ) . The life rhythm of sail holiday bundle is now at the phase of Growth The grounds are harmonizing to the undermentioned phenomena: Changes in Product line Flying On Travel Agent ( Hong Kong ) cooperated with different sail company and ever increase the assortment of sail lines. Before 2004, there are merely three sail holiday bundle provided to their clients. This included the sail ships Infinity and Constellation from Celebrity Cruises Company: and Costa Classic from Costa: Cruises Company. Until 2010 April, Flying On Travel Agent ( Hong Kong ) provide 34 assortment of sail holiday bundle to their clients. Besides the sail paths change from within Asia part to Hong Kong USA or Europe. By altering the merchandise line, clients will hold more option to take and it is one of the methods to avoid the lessening in sale volumes of sail holiday bundle. The of import point is that Flying On Travel Agent ( Hong Kong ) understand their clients penchants, and respond to their demands. And they need to pass on with the Cruise lines have to placing market demands and edifice ships to fit those demands. This may include seting their paths, supplyi ng a assortment of activities, penchants, amusement picks, and involvements, to run into Asiatic outlooks every bit good as to reflect the cultural character of the part Amrik Singh ( 1999 ) Presents, Flying On Travel Agent ( Hong Kong ) coordiante with five big international sail companies. They included Azamara Cruises, Celebrity Cruise, Costa, Royal Caribbean Internatioanal, MSC Cruises. Each of the companies have differenct figure of cruise ships. Each of them with different paths, yearss, finishs and charactieritcs. Paths for each sail ship Azamara Cruises Company: with one sail ship called Azamara Quest which include a 15 yearss tour traveling to Turkey, Ukraine, Bulgaria, Greece Celebrity Cruise Company with four sail ships Infinity which include a 9 yearss tour traveling to Seattle, Alaska, Victoria ) Equinox which include 13 to16 yearss tour traveling to Italy, Greece, Turkey, Egypt, Israel Eclipse which include 14 to 17 yearss tour traveling to England, Spain, Portugal, France Configuration which include 15 yearss tour traveling to Holland, Germany, Sweden, Russia, Finland, Denmark, Costa: Cruises Company with six sail ships: Costa Classica which include 5 to 9 yearss tour traveling to Taiwan, Shanghai, Japan, Korea, Vietnam, China, Costa Deliziosa which include 9 to 10 yearss tour traveling to Dubai, Denmark, Finland, Sweden, Russia Cost Serena which include 10 yearss tour traveling to Mediterranean Costa Concordia which include 10 yearss tour traveling to Italy, Tunisia, Spain, France Costa Pacifica which include 10 yearss tour traveling to Mediterranean, Italy, Greece, Croatia, Malta Costa Luminosa which include 14 yearss tour traveling to Holland, Denmark, Sweden, Finland, Russia, Baltic Sea Royal Caribbean International Cruises Company with three sail ships Legend of the Sea which include 7 to 8 yearss tour traveling to Shanghai, Japan, Korea, Russia Voyager of the Seas which include 10 yearss tour traveling to Italy, France, Spain Oasis of the Seas which include 11 yearss tour traveling to Miami, Bahamas MSC Cruises Company with six sail ships Fantaisa which include a 10 yearss tour traveling to Italy, Spain, France Magnifica which include 10 yearss tour traveling to Italy, Greece, Turkey, Croatia Musica which include 10 yearss tour traveling to Italy, Greece, Turkey, Croatia Orchestra which include 10 yearss tour traveling to Denmark, Germany, Sweden, Russian Poesia which include 10 yearss tour traveling to Denmark, Germany, Norway MSC Splendida which include 10 yearss tour traveling to Italy, France, Spain, Malta, Tunisia Gross saless Volume among those tourist merchandises selling in Flying On Travel Agent ( Hong Kong ) At the beginning of selling sail holiday bundle, Flying On Travel Agent ( Hong Kong ) merely selling the bundle through their subdivision offices as the figure of sail is non every bit much as presents. The gross revenues volume of sail holiday bundle is merely 5 % in 2003 ( informations recorded by Flying On Travel Agent Mr. Ho Outboard Operation Manager ) among their assortment tourer merchandise such as circuit, vacation bundles, hotel merchandising and ticket merchandising. At that clip, they do non hold any advertizement about their sail holiday bundle. They merely selling the sail holiday bundle through the publicity by sales representative who sitting in their subdivision offices. In 2006, the gross revenues volume of sail holiday bundle is increased to 11 % ( informations recorded by Flying On Travel Agent Mr. Ho Outboard Operation Manager ) among their assortment tourer merchandise. The increased gross revenues volume of sail holiday bundle is due to the addition of cruise s hips arrived in Hong Kong and the capacity of sail ships increased quickly. Promotion Methods In order to advance the sail holiday bundle, Flying On Travel Agent ( Hong Kong ) will organisation different publicity activities to their clients. In 2008, Flying On Travel Agent ( Hong Kong ) corporate with Royal Caribbean International and invited VIP invitees to see the sail of Legend of the Sea . During the visit, invitees were able to look around and seek to utilize all facilitates and activities on board. Each invitee will have a booklet which introduce facilitate, activities and paths of The Legend of the Sea . Guests were able to inquire any inquiries about the ship during the visit. In the same twelvemonth, Flying On Travel Agent ( Hong Kong ) arranged another group of six 100 invitees to fall in a New Year Party which held in The Legend of the Sea . During the party, there was a lucky draw. The award are included one free circuit of The Legend of the Sea which provided by Flying On Travel Agent ( Hong Kong ) . In 2008, Flying On Travel Agent ( Hong Kong ) besides held a Maiden Voyage Celebration And Introduction Of Itinerary Meeting of the Voyager of Sea in their Cruise Centre. During the meeting, some images shown so environment ( e.g. adorn infinite ) , installations ( e.g. swimming pool ) , of Voyager of Sea were shown. One hundred of invitees were invited and half of them joined the sail holiday bundle of Voyager of Sea in the same twenty-four hours. In 2009, Flying On Travel Agent ( Hong Kong ) introduce the programme Travel Expertise to supply a to the full service and selling schemes to their clients. Ms.Yuki Lau who is an expertise leader in Cruise circuit. By keeping this programme, the mean gross revenues volume of sail holiday bundle increased 2 % . ( informations recorded by Flying On Travel Agent Mr. Ho Outboard Operation Manager ) Improved Quality In order to better the quality of selling sail holiday bundle, Flying On Travel Agent ( Hong Kong ) established a Cruise Center in Central for their clients to inquire information for sail holiday at 2006. All of the staff in the sail centre has finished the Cruise Selling Training Course provided by Travel Industry Council of Hong Kong ( TIC ) . All of the staff has award the certification of this preparation Course. Furthermore, in 2006, Flying On Travel Agent ( Hong Kong ) corporate with Costa and three hundred of their staff reward the professional sail expertness University of WOW ( Expert Level ) of Discover Costa . Rival After Flying On Travel Agent ( Hong Kong ) established the first Cruise Center in 2006, their rivals start to follow them, for illustration Hong Thai Travel Agent and EGL Tour Agent established their first sail Centre at the terminal of 2008 and Decision Harmonizing to the theory of Alan Marklew ( 1985 ) , it can see that the merchandising of sail holiday bundle in Flying On Travel Agent ( Hong Kong ) is now in the Growth phase. A figure of factors will lend to this, the figure of increase gross revenues volume, the present of rival, increasing the entreaty of the merchandise to a wider market, the alteration in merchandise line and the appear of rival. Due to the edifice of a sail terminus at the former Kai Tak airdrome will be opened in the mid 2013, the development of sail industry in Hong Kong has a strong potency to go a prime sail hub in the Asia Pacific part.