The 10 kinds of nationality in the cruise industry

Nationality is a confusing concept in the cruise industry. With overlapping legal jurisdictions and cultures, casual observers often confuse what they mean by a cruise line being “American” or “British”.

As an example, it might seem obvious to call Cunard a British company, but what does that mean? Cunard was founded in the UK and still has its headquarters there, but its ships are registered in Bermuda. It’s owned by a Panamanian corporation (with headquarters in Miami), and while officers onboard are mostly British, crew members come from around the world.

This article is an attempt to clarify how to think about nationality in the cruise industry. Here, I lay out ten kinds of nationality.

1. Passenger nationality (also known as source market) — Where do passengers come from? Are they mainly from one country or is there a mix of passengers from different countries? Examples: On Carnival, almost all your fellow passengers will be American, giving their cruises a real American feeling. On Costa, passengers are from a bunch of different (mostly European) countries. Except in China.
2. Officer nationality—Where do the ship’s officers come from? Traditionally, navigators and engineers were Italian, Greek, or Northern European, and many companies still have traditional places where they recruit. Silversea and Carnival, for example, have Italian captains. Celebrity’s are mostly Greek. However, in the past decade cruise lines have started recruiting more broadly. For example, while Royal Caribbean traditionally had Scandinavian captains, it has promoted captains from the United States and South America. Captains are almost always white men, but Windstar recently made history by appointing the first black woman cruise captain.
3. Staff nationality— Where do the staff come from? The staff manages the ship’s entertainment and they tend to share a native language with the passengers (think cruise directors and entertainers). On ships with American passengers, the staff tends be from the U.S. or commonwealth countries (UK, Canada, Australia).
4. Crew nationality — Where do the rest of the crew come from? On most cruise ships, crew will be from a range of lower wage countries like the Philippines. There are counterexamples, though. Pride of America’s crew is largely American, because the ship is registered in the U.S.
5. Ship’s location/itinerary — Where is the ship embarking passengers? Where does it load food? Where is it visiting? A ship’s location affects the experiences crew and passengers have on land, the supplies available to the ship, and the regulations the ship is subject to. Location can also affect the type of passengers onboard. When Royal Caribbean sails in China, its cruises are primarily sold to Chinese tourists. However, location does not always match source market. When Azamara sails in China, its ships carry Americans and Australians.
6. Brand nationality — Some companies have a nationalist brand identity. Costa is Italian, Holland America is Dutch, Cunard is British. However, not all cruise lines incorporate ideas of nationalism into their brands. Royal Caribbean, for example, portrays itself as an “international” brand.
7. Headquarters location — The location of a company’s headquarters is mostly determined by proximity to passenger source markets (ie where they’re selling cruises) and proximity to where their ships sail. Most American cruise lines have their headquarters in Miami, which is the most popular starting point for Caribbean cruises. Why does the location of headquarters matter? Back office employees bring biases and local experience into their decisions, even if they don’t intend to. For example, Princess (based in California) has been much more creative with its California cruise offerings. Carnival and Royal Caribbean, both based in Miami, sail from every conceivable port in Florida. When a place is close to home, itinerary planners and executives see those opportunities more easily.
8. Ship’s Registry —A ship’s registry is mostly about choosing a legal regime. It is common for international shipping companies to fly “flags of convenience”, and many cruise lines follow this model by registering ships in the Bahamas or Panama. However, there are three other factors that cruise companies consider when choosing a flag. First, is it legal to operate an itinerary? Because of cabotage restrictions, ships sailing within Hawaii must be American-registered and ships in the Galapagos must be Ecuadorian. Second, companies with nationalist brand identities like a flag that matches. Holland America, for example, registers its ships in Rotterdam. Lastly, some companies make money by performing weddings at sea (as opposed to in port). Despite its British heritage, Cunard famously re-registered its ships from Southampton to Bermuda. Unlike most countries, Bermuda allows a ship’s captain to perform weddings at sea.
9. Shipbuilder — Most cruise ships are built in Europe. Expertise, suppliers, and government assistance are concentrated there, even though most other ships are built in Asia. There are exceptions. Mitsubishi occasionally builds cruise ships, and China may soon build one too. Cabotage restrictions can also influence the choice of of shipyard. For example, U.S. registered ships must be built in America. That’s why National Geographic Quest is being built in Washington, and it’s why Viking has delayed their Mississippi debut.
10. Corporate Domicile —Although many cruise companies have their headquarters in the U.S., almost all of them are foreign corporations. Much like a ship’s registry, the choice of a corporate domicile is largely determined by legal regime and taxation. For example, Royal Caribbean is a Liberian corporation and Carnival is Panamanian, even though both companies have headquarters in Miami. Foreign shipping companies do not pay corporate income tax in the United States.

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