analytic report on future of cruising industry

Effects of Technology on Future of Cruising Industry

From facial recognition for check-ins, magic carpets, to geo-location of children (virtual butlers), cruise ships are employing modern technology to optimize customer experience, and it’s benefiting businesses and customers alike. Cruise companies recognize that the way to the millennial generation's (the new generation of clients they're targeting) heart is to make sure they can compete with shore-based technology while incorporating the innovative features this industry is known for. Cruise lines are looking forward to investing millions of dollars to ensure that their clients can experience "smart" cruising at its best by utilizing mobile devices and apps and behind-the-scenes technology that promotes more environmentally friendly operations and increase efficiencies. Modern vacationers are urgently looking for a more technologically advanced vacation option, and the traditionally reticent cruise industry will have to accommodate this new group of cruisers in novel ways. This research paper explores and identifies the likely effect of at least eight technologies that will shape the future of the cruising industry: facial recognition technology, virtual check-ins, geolocation, augmented reality, chatbots, wearables, digital personal cruise assistants, and technology-based entertainment. Comment by Author: Are these the same thing? Comment by Author: Do you have research to support this? Comment by Author: Try to avoid the use of vague pronouns in business writing. Comment by Author: Subject-verb agreement Comment by Author: How do you know this? Comment by Author: Are you sure? Throughout the paper, it’s important that you cite your sources. Comment by Author: This is a good topic, but but strive for something more than just a “book report”; that is, a report that’s only descriptive. Strong papers start by addressing a focused research question. Is the question you’re asking, How will technology affect the cruise industry? This is a good place to start, but perhaps too broad. Will you look only at customer-facing technology? Is there a specific type of effect on the industry that’s of interest to you?

Facial Recognition Technology & Virtual Check-Ins

Technology-based cruise-ship travel biometric verification solutions assist the industry in rationalizing identity verification methods when passengers board ships. Facial recognition software is used for passenger identification to optimize the passenger boarding experience. They use Artificial Intelligence techniques and algorithms to help authenticate passengers as they arrive at the port[footnoteRef:1]. Passengers’ identities are verified within two seconds, and the verification process is 98 percent accurate – this helps eliminate long check-in lines at sea ports or cruise terminals[footnoteRef:2]. Disembarking or boarding travelers will be required to pose for a picture that will be biometrically matched to their visa or passport photo stored in database systems of the U.S. Department of Homeland security. This will help achieve security and customer experience simultaneously. As we speak, the technology is already deployed at 11 major cruise ports including Port Everglades, Port Canaveral, New Orleans, and Miami[footnoteRef:3]. In addition, cruise lines (such as the Norwegian Cruise line) provide apps which enable travelers to virtually check-in or purchase items prior to their embarkation. The implementation of such systems will help passengers have the benefit of streamlined, touchless, and secure entry procedures into and out of the U.S. via cruise ships. Comment by Author: Is this your langague or is it almost word for word from the blog? If the latter, the sentence should be quoted and cited. Otherwise, you’re passing of this idea as your own, which may run afoul of academic integrity. Comment by Author: Who is “they”? Comment by Author: Footnote numbers should be placed after sentence puncution. Please see the Writing Tips handout on Canvas. Comment by Author: What do you mean by achieve customer experience? Comment by Author: ? Comment by Author: But has this technology been widely adopted yet? If not, what stands in the way? This would be an interesting question to consider. [1: Efron, J. (2020, January 31). Facial recognition technology grooving into cruise ships for ID verification. Shufti Pro. https://shuftipro.com/blog/facial-recognition-technology-grooving-into-cruise-ships-for-id-verification/ ] [2: Hersey, F. (2021, August 6). CBP biometric facial comparison deployed for cruise ship disembarkation in US. Biometric Update. https://www.biometricupdate.com/202108/cbp-biometric-facial-comparison-deployed-for-cruise-ship-disembarkation-in-us#:%7E:text=The%20technology%20deployed%20verifies%20a,Department%20of%20Homeland%20Security%20systems. ] [3: Kosciolek, A. (2021, August 12). You could breeze through US customs more quickly after your next cruise, thanks to facial recognition. The Points Guy. https://thepointsguy.com/news/cbp-facial-recognition-us-cruise-ports/ ]

Facial recognition technology is likely to have a profound impact on the cruise ship industry. Addressing the trend, Tori Barnes, the executive Vice President of the US Travel Association termed the innovation as one that will play an increasingly vital role in guaranteeing efficient and more secure travel for all. Mr. Barnes also mentions that the innovation will help revitalize the cruise industry, which is a vital sector of the U.S. travel economy. Revenues declined during the COVID pandemic but the industry is set to register more revenue following the implementation of this technology. The pre-pandemic record of passengers was 29.7 million passengers globally; there is optimism that there will be a surge in this figure following the introduction of the software because it guarantees the security, safety, and health of passengers on board. Comment by Author: Source? Comment by Author: Run-on sentence. Comment by Author: How many cruise lines are using this technology? Can this be investigated? Is there information on cruise lines’ websites about it?

Geo-Location

Location intelligence is another technological advancement on cruise ships. With up to 16 stories, cruisers may be challenging for travelers to navigate, but mapping technology is alleviating the agony. For example, the MSC for Me app provided by MSC cruiser ships provides passengers with digital navigation features throughout its ships, with turn-by-turn directions on their smartphones allowing them to effortlessly make their way from cinemas, to restaurants, to private rooms[footnoteRef:4]. It will also enable users to track their baggage. Other cruiser lines have not been left behind, they are also inventing innovative solutions to enable passengers navigate with ease the compartments and facilities within cruiser ships. For instance, Royal Connect Wristbands and Smartphones produced by Royal Caribbean International that use RFID (Radio Frequency Identification Technology), allow parents to monitor the locations of their children within the ship by sending alerts to those wearing wrist bands or by identifying tag locations on Royal connect smartphones’ map displays[footnoteRef:5]. Comment by Author: It’s not clear what this means. Comment by Author: ? Comment by Author: Comment by Author: ? Comment by Author: Run-on sentence. Comment by Author: ? Comment by Author: ? Comment by Author: Since none of our guest speakers referenced this, do you know if the technology is in use? [4: Dickson, I. (2019, October 22). Five ways tech is transforming the cruise business. HERE360. https://360.here.com/cruise-ship-technology ] [5: Sindakis, S. (2014, April 29). Innovation, Technology, and Competition in the Cruise Industry. TravelDailyNews International. https://www.traveldailynews.com/post/innovation%2C-technology%2C-and-competition-in-the-cruise-industry-51085 ]

Geo-location navigation features and maps are likely to create a surge in global demand in the cruiseing industry because travelers are concerned about the safety and security of their loved ones as much as the thrill of vacation. Bigger river cruise ships can accommodate around 150 travelers whereas ocean liners have a passenger capacity of around 3,000 guests; therefore, it can be very easy to get lost in the midst of all these travelers let alone find loved ones. Geo-location apps will be an incentive for passengers to select cruise liners their preferred vacation option. According to Stieghorst (2019)[footnoteRef:6], the development and improvement of cruise ship apps is leading to an increase in onboard revenue streams as more consumers book services and schedule activities via such apps prior to boarding. This suggests that the cruiseing industry is likely to be more profitable in the future owing to the development of geo-location bracelets, wristbands, apps or smart phone features. Comment by Author: Is this your opinion or that of another source? Comment by Author: Check this against what our guest speakers have said in class. Comment by Author: This is unclear as written. Comment by Author: How do you know this? [6: Stieghorst, T. (2019, July 24). Cruise Line Apps are Igniting Early Onboard Spending. PhocusWire. https://www.phocuswire.com/Cruise-line-mobile-apps-early-spending ]

Technology-Based Entertainment and Hospitality

Hospitality

Some trends in technology-based hospitality include robot bartenders, digital personal cruise assistants; mobile apps for booking excursions, shows, and restaurants; and handy remote ordering systems. For instance, the MSC Cruiser line innovated Zoe, the world’s first digital personal assistant created to respond to more than 800 questions customers may have in 7 languages. Zoe aims to enable the new-to-cruise vacationers to adapt to sea vacations by allowing them to ask simple queries that they may otherwise not ask any cruise attendants. Besides Zoe, MSC Cruisers also have digital displays around the ship, and interactive smart TV screens in cabins, which are made available 24/7 – this means that customers get to spend less time making inquiries at the customer services desk and more time enjoying their vacations[footnoteRef:7]. Comment by Author: ? Comment by Author: ? Comment by Author: Sen, please carefully review your paper for punctuation mistakes. [7: Macefield, S. (2020, March 24). Smart ships: technology at sea. Cruise International. https://www.cruise-international.com/smart-ships-technology-at-sea/ ]

Other companies have also tried to innovate their services for a more holistic customer experience. Princess Cruises, for instance, launched its OceanMedalion (a wrist-wearable device) digital assistant in 2019 and termed it as a game-changer for passengers on deck[footnoteRef:8]. The outstanding features of the device included locating travel companions aboard through the family and friend’s locator, ordering drinks and food from literally anywhere around the ship, touchless stateroom entry, and quicker check-in to make the whole cruising experience personalized and frictionless from embarkation to disembarkation. Comment by Author: What do you mean? [8: Macefield, S. (2019, February 25). Princess Cruises Ocean Medallion review. Cruise International. https://www.cruise-international.com/princess-cruises-ocean-medallion-review/ ]

Entertainment

Cruise ships are revolutionizing their entertainment to be more technical, interactive, and futuristic to improve consumers’ holiday experience. Some of the technological innovations include panoramic sea views through ceiling-to-floor glass walls, magic carpets, study walls, RoboScreens, and gaming enhanced with augmented reality (AR) and virtual reality (VR). Augmented reality and virtual reality VR have been integrated into gaming areas to make gaming livelier. VR generates three-dimensional environments or images using unique electronic equipment, whereas AR adds visual and sound features to make gaming more fun, livelier/real, and interactive. Gamers can play zapping aliens or fighting zombies in the VR pavilions of Celebrity Cruises or MSC Cruises. Comment by Author: What’s the source for the information in this paragraph?

Cruisers are also making it a norm to install large interactive touch screens on ships enabling guests to access daily programs or make reservations. New expedition ships like the Hapag-Lloyd Cruiser has advanced these interactive screens – its ships now have “study walls” to allow passengers to search for information on their next travel destination. Roboscreens are just graphical screens mounted on the ceiling (when not being used) and extend down off the ceiling to a slightly-above position to display ultra-high definition videos and imagery aimed at enhancing live performances[footnoteRef:9]. Lastly, cruise ships also set up magic carpets to give travelers a memorable vacation experience. Magic carpets are tangerine-colored movable (can move up and down) platforms hanging over a cruiser ship’s side and can serve as a restaurant or open-air lounge with dazzling views of the sea. Comment by Author: ? Comment by Author: ? Comment by Author: Slightly above what? Comment by Author: How many companies have this? Comment by Author: ? [9: Heney, P. (2015, February 6). RoboScreens add visual intrigue to cruise ships. Design World. https://www.designworldonline.com/roboscreens-add-visual-intrigue-cruise-ships/#:%7E:text=A%20RoboScreen%20is%20a%20graphical,movement%20to%20the%20video%20media. ]

Effect on the Cruisesing Industry

From a financial point of view, one can tell that these innovations will be costly for the industry but will enable the industry to reap a lot of gains. There is an expectation of an increase in sales revenue, efficiency, and financial performance of cruiser ships; increased employment and better wages in the industry; greater market share; and improvement in the value of listed shares of the cruiser lines[footnoteRef:10] Sales revenue would be exponentially high because the fascinating entertainment options will attract customers – they would desire to get a retreat or a vacation of their life no matter the cost. Cruiser ships make billions of dollars in revenues each; the increase in demand in the industry would necessitate companies to hire more employees and provide them with better remuneration and compensation to avoid letting rival organizations poach them. Comment by Author: How can one tell this? Is there information on the costs of these technologies? Comment by Author: ? Comment by Author: Run-on sentence. Also, this is a relatively old source for a topic on innovation. Comment by Author: How do you know this? Comment by Author: This could be better written. Also, can you support this statement? Comment by Author: ? Comment by Author: Each ship? Are you sure? Comment by Author: Redundant? [10: Theron, J. (2020, June 3). 12 Key Factors to be Considered in Industry Analysis. Googlesir. https://www.googlesir.com/factors-to-be-considered-in-industry-analysis/ ]

Market shares for the cruiser lines that have adapted to these entertainment and hospitality technologies will also increase substantially because normal cruisers (those without latest innovations and technologies in the industry) would not be able to compete effectively. Lastly and most importantly, there would be a significant augmentation in the value of the shares of listed companies in the cruisesing industry. For instance, the shares of the world’s largest cruise lines such as Norwegian Cruise Line Holdings (NCLH), Royal Caribbean Cruises Limited (RCL), and Carnival Cruise Lines (CCL) are likely to increase because investors would be attracted by their enormous profits owing to the adaption of the latest entertainment technologies in their operations[footnoteRef:11]. Comment by Author: ? Comment by Author: ? Comment by Author: How do you know this? Must all cruise offerings be high-tech? Comment by Author: If this is true, why haven’t all cruise companies invested heavily in such technology? [11: Evans, K. (2022, January 4). 3 Top Cruise Ship Stocks To Buy in 2022. GOBankingRates. https://www.gobankingrates.com/investing/stocks/best-cruise-line-stocks/ ]

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