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.
The business is extremely volatile; the ships are massive capital
expenditures with ruinous 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 travellers, but have
become large, modern, and extremely elegant, yet still profitable,
and Holland America Line, whose ships cultivate an image of
classic elegance.
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