St Marys

University College
Twickenham
School of Management and Social
Science.

A report examining the

impacts of tourism in
Winchester.

Student ID: 090243

Table of context.

Introduction....................................................................................

Methodology..............................................................................

Results and findings:

Analysis Discussion

Section two:

Conclusions & Recommendations....................................................

Bibliography..................................................................................

Appendices...........................................................................................
Introduction.
This report is to investigate various strategic issues in tourism and discus their implication on
a specific sector of the industry. The drive towards consolidation within the cruise industry.

The cruise industry has become the fastest growing sector in the tourism industry also seen as
a holiday product as well as a mode of transport. Cruising is the best way to see the world
without stress. According to Ross A. Klein (2002 pg2) “since 1970 the number of people
taking a cruise has increased by more than 1000 percent.” the cruise industry today is
different from the image it had by looking at changes brought to contradictions between its
past image and the reality of cruise experience. Although Carnival cruise line was perhaps the
first to be established, Royal Caribbean Cruises Limited, P&O Princess and Malaysia are all
growing bigger with bigger ships due to factors of consolidation, bankruptcies, takeovers and
mergers.

Since 1980s Greater Consolidation has impacted significantly on the global tourism industry,
according to Bovee.et al (2004) consolidation is a combination of two or more companies
coming together with similar interests and get rid of the old company in order to be part of a
new business, however combined entities hope to eliminate expenditures for redundant
resources and increase the revenue by cross selling products to each other’s customers.
Mergers, takeovers are forms of consolidation however in the cruise industry consolidation
has resulted into two large competitors. Mergers is when two companies come together under
one manufacturer to form a business combination then one dominates and effectively take
over in order to get a stronger position in the market, for example the 2003 mergers of
P&O’s princess cruise with carnival strongly hold the leadership position in the industry .
Acquisition is when one company takes over another with a major control, according to
Arnold et al. (1985 pg494) “Merger involves no acquisition but rather a joining together of
interests” in other words two companies would have a friendly discussion to work together.
Methodology
Importantly the secondary method used to collect data was books including cruise ship blues,
ocean travel and cruising; a cultural analysis, cruise ship squeeze; the new pirate of the seven
seas, the business in action, and tourism principles and practice

Some information will be from journals, cruise websites www.cruiseindustrynews.com,

www.cruise-community.com