An increasingly significant sector of the hospitality and leisure industry is that of the cruise sector. In an evergrowing and continuallyevolving cruise industry, the delivery of a memorable personal service experience is particularly significant as an integral part of organisational effectiveness. A record 1.9 million holidaymakers from the UK and Ireland took an ocean cruise in 2016, proving that the wide choice of cruise holiday experiences, worldwide destinations and high levels of service offered on a cruise holiday cannot be beaten. *

Successful cruise management is a combination of travel agency, hotel and leisure activities, onboard entertainment and organised tours. It entails a complex and involved series of processes, both at sea and in different ports of call, quite unlike those experienced in most other business organisations.
Some particular factors to consider include, for example:
*Continual heavy guest occupancy and usage, with rapid turnover, mass entry and exit *‘people logistics’ – attending to the complex transportation needs of guests pre-and postcruise, and the logistics of a broad variety of shore excursions in different locations

* A wide range of onboard activities and events throughout the day and evening

*The highest standards of safety and security, maintenance, logistics and tender operations *Relationships with Head Office, Technical Department, Port Authorities, Pilots etc.
*Expectations of highquality cuisine, design and mix of menus, special dietary requirements

* Health and hygiene, with large numbers of guests and crew in continual close contact *crew resource deployment and rotationplanning, with the unavailability of additional agency or temporary staff, unlike landbased organisations. Need for flexible working practices in response to the demands of the business *Accommodating annual leave requirements, complex international flight arrangements for some crew members, and managing opportunities for time on shore *Changeover of crew at the end of contracts – maintaining business continuity.

Cruising is associated with a high level of service delivery; based on preconceived expectations, guests can be very demanding. Guest satisfaction is dependent to a very large extent on the people: in particular, the daytoday contact with – and care and attention from – members of the crew; and also travel with fellow likeminded guests.
Different cruise ships tend to focus on a particular range of guests, for example younger people, families with children, more mature and perhaps less able people.
Although not exclusively, Fred. Olsen’s target clientele is guests over 55, and some itineraries stipulate adult travellers only.
Fred. Olsen Cruise Lines has a Norwegian heritage, but is a Britishbased company, and dates back to 1848.
It is one of the only familyrun cruise lines in the world.
The company has stylish, smallersized ships, departing from five regional UK ports. The ships have capacities between 800 and 1350 guests: large enough to provide the facilities desired by guests, but small enough to enable a ‘closer’ exploration of a wide range of exciting destinations. Emphasis is on a comfortable, friendly atmosphere – delivered ‘with a smile’ –by caring and attentive crew. Guests are welcomed as individuals in a relaxed, familiar ‘homefromhome’
ambience. Among a number of accolades in recent years, Fred. Olsen Cruise Lines has been voted ‘Best Ocean Cruise Line’ in the ‘Silver Travel Awards’ in 2016 and 2017, recognised for its excellent customer service, attention to detail and strong brand standards by cruisers over 50. 

Members of crew come from a wide and diverse range of cultures and backgrounds, with a majority from the Philippines, Thailand, Indonesia and India:especially among room stewards and restaurant staff.

There is also a noticeable cultural mix among top managers;from different religions, age groups and often different ways of working. The crew work long hours in often difficult and demanding conditions, and are away from their homes and, in many cases, young families, for up to nine months. Mixing socially is important.

Despite these different backgrounds, a noticeable feature is the strong, mutuallysupportive teamwork across the Fred. Olsen fleet. Crew members are ready to help each other whenever needed, usually without direction from management. Supervisors are often seen helping out with routine duties to support their colleagues. A high number of Fred. Olsen crew members return to complete further contracts and have been engaged over many years with the company. In fact, Fred. Olsen has one of the highest staff retention rates of any cruise line, with some staff serving several decades with the company, and even generations of the same family working across the fleet.

Gratuities to crew members are an accepted custom throughout the cruise industry. Tips are a recognised feature of the reward system for good performance. It is up to guests to opt out of payment or vary the amount, at their discretion.

Management’s concern and support for the welfare of its crew is of prime importance. At the same time, the nature of cruising demands attention to a safe and secure environment, for both guests and crew. This demands a management structure with clear lines of authority, directed leadership and good order. Strong discipline must be maintained at all times.

Fred. Olsen prides itself on providing exceptional service by anticipating, meeting and exceeding its guests’

expectations when they are on board its ships. Despite the continually evolving and highly competitive nature of the industry, Fred. Olsen attracts a high level of

‘repeat guests’ – that is, loyal customers who have cruised with the company at least once before. On a typical Fred. Olsen cruise, more than half of the guests are repeat customers, which is one of the highest return rates of any major cruise line. A particularly noticeable feature of guest feedback is the extremely favourable and complimentary comments regarding the level of attention from courteous and eversmiling crew members.

1.Explain particular features of organisational behaviour raised by this case study.

2.The company has a particular attraction for discerning, traditional guests, predominately in the 55plus age bracket. What additional considerations do you think this creates for both crew and management?

3.What do you think are the most important factors that explain the high level of repeat guests on Fred.Olsen cruise ships?

4.Discuss specific ways in which this case study draws attention to the importance of the people–organisation relationship.