Sitmar Cruises Case Study

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I once asked a friend what made Sitmar Cruises special and without missing a beat she replied, “They serve mixed nuts to the last night!” It was that high level of service which distinguished Sitmar among its competitors. Even now, almost thirty years after they merged into Princess Cruises, former passengers still talk of the attention to the small details that made Sitmar unique. Yet, despite its reputation for service and luxury, Sitmar’s origins were very different. Russian-born businessman Alexandre Vlasov, who had fled Odessa at the time of the Russian revolution, got his in the shipping business transporting coal from Poland to Turkey, Greece and Italy. In 1938, with his son Boris Vlasov, they started another cargo shipping company, …show more content…

Many cabins had color TVs and 4-channel radios. Early on, they launched Big Band and nostalgia themed cruises and later they started featuring well-known entertainers including comedian Alan King and singer Tony Bennet on their ships. Sitmar also had a pizzeria onboard as well as one of the industry’s most extensive youth activity programs. But the heart of the “Sitmar Experience” was the Italian crew which pampered the passengers and lavished them with food and service that was said to rival the best resorts in the world. By 1976, Sitmar Cruises had turned profitable and two years later they were sailing at over 90 percent of capacity with many trips sold out months in advance. Sitmar maintained a pattern of cruises varying in length between 6, 7, 10, 11 and 14-days. The Fairwind sailed year-round from Florida and the Fairsea split her year between Mexico in the winter and Alaska in the summer. They also operated Panama Canal cruises and in 1978 introduced the partial transit known as the Gatun Lake …show more content…

Many years earlier, he had placed ownership of Sitmar in a family trust, keeping it separate from the V Group which managed tankers, cargo ships and ferries. However, none of his children had followed him into the shipping business and early in 1988 the family sold some of the shares of Sitmar to an investment group. Then at the end of July 1988 came the news that P&O had acquired Sitmar for $210 million and would merge it with its long-time rival Princess Cruises. In just a matter of weeks, the Fairsea was renamed Fair Princess, the FairWind became the Dawn Princess, the Fairsky the Sky Princess and the new FairMajesty still under construction in France became the Star Princess. Sitmar’s two new buldings in Italy would ultimately become the Crown Princess and the Regal Princess when they entered service in 1990 and

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