A Possible Sustainable Future for
Paddle Steamer Waverley Note : Statistics have
been redacted from this summary
The issue
Paddle
Steamer Waverley loses money each year. The trading surplus (if any) is
never enough to pay for her annual dry-docking, manintenance, statutory
inspections and recertification
The problem
Waverley's
survival relies on continuous donations and legacies from supporters
and periodic nationwide public appeals. Major capital expenditure
requires external funding from sources such as government schemes or
the Heritage Lottery Fund. External grants are normally
considered for planned expenditure rather than emergencies and usually
require considerable self-raised match-funding. None of these sources
of finance can be guaranteed when required or in the amount required.
Therefore, the amount of external funding required must be minimised
and preferably eliminated. This would require a change to the current
business plan.
Discussion
The current business model continues much of what paddle
steamers did when owned by commercial operators. However, the
market now comprises
only excursionists, mainly on long day trips, with traditional
ferry runs no longer available. The
ship operates (almost) every day in the main summer
season,
with commercially-engaged operational, management and
administrative staff. Due to the summer season on the Clyde being
relatively short (mid-June to mid-August), the ship has had to
extend its range to other parts of the UK, starting in a limited
fashion in 1977 and expanding to cover much of the country in
subsequent years. In more recent times, the range has been limited to
short visits to the Western Isles prior to the main season, then a
longer period further from base at Liverpool, the Bristol Channel, the
Solent and the Thames Estuary from late August until mid-October. These
areas have generated essential revenue, especially the Thames, but this
has come with increased costs and increased risks, such as having to
sail in relatively exposed sea areas at times of the year when weather
and sea conditions can be unfavourable. The high cost of chasing
business in these areas means that hoped-for profits can disappear
rapidly if services do not run smoothly or at all and if passenger
numbers disappoint.
The
objects of the charitable organisation which owns Waverley
include preserving the
ship and what it has traditionally offered and this also largely
reflects the wishes of its supporters. The membership of the
Paddle Steamer Preservation Society is spread across the UK in a
branch-based organisation reflecting the main sailing areas. The
membership numbers in the Scottish Branch are exceeded by those
elsewhere in the UK by a significant margin, suggesting that
restricting Waverley to sailing in its home waters of the Clyde
might be unpopular with a significant number of its registered
supporters.
Waverley
has a well-established customer base with many return customers, a
significant number of whom can be classed as vessel enthusiasts to a
varying degree. She also receives wide publicity from those eager to
promote her privately. A significant amount of money has always been
spent on traditional and new marketing channels, but recruiting
new customers can be relatively expensive. With revenue unlikely to
increase without considerable
expenditure it is possible that with retrenchment in operational
ambition, costs can be reduced by a greater amount than the resulting
decline in revenue.
Basic Premise
With
reduced operating costs and, in particular,
fixed overheads, the business does not need to take on excessive costs
and risk to chase marginal revenue and is more resilient to unexpected
reductions in
revenue. Liabilities are minimised
and, in the case of disruption to
planned revenue streams,
the funding gap is minimised. This makes it comparatively bridgeable.
There is
also the opportunity to generate a surplus and create reserves if
revenue streams exceed plan.
Main Recommendations
In
order to achieve business simplification and therefore cost and risk
reduction, whilst maintaining the essence of the current operating
model, the following steps are proposed for consideration :
-
Operate in categorised waters in the Clyde (ie
upper Firth) only
- Reduce the length of time in steam per day
- Simplify the range of cruises offered
- Offer separate morning and afternoon cruises
- Start and end all cruises at Largs
- Accept walk-up passengers and pre-arranged tour groups
only, unless for any special cruises where high numbers might be expected
- Obtain payment at the gangway prior to boarding
- Accept cashless transactions only, with possible exception of on-board sales (which are internet-signal dependent)
- Offer a limited coffee-bar style catering service only
Targeted Cost
and Risk Minimisation
- Reduced cost of complying with Class IV/V compared with Class III
certification
- Reduced risk of cancellation or disruption to the schedule
- Reduced cost and complexity of returning passengers to their port of
embarcation in case of disruption
-
Minimised pier charges, limited number of docking manoeuvres and fewer
conflicts with other vessels at piers. Pilotage charges unlikely
- Reduced insurance premiums
-
Simple pricing structure and elimination of any need to check that the
fare paid is correct for the cruise undertaken.
- Greatly reduced administration (e.g. ticketing) and complete elimination of refunding for cancelled cruises
(except for pre-booked groups if pre-paid)
-
Greatly reduced management and administration costs and complexity
associated with catering and bar service. No security issues regarding
alcohol -
Standardised and regular shift pattern to make local recruitment of
crew easier, possibly eliminating on-board crew
accommodation costs
Sailing Proposition
Cruise Programme
Day
A : Largs - Rothesay - (Round Bute ) - Largs
:
Largs - Rothesay - (Round Great Cumbrae) - Largs
Day A : Largs customers may take time ashore at Rothesay
Day B : Largs customers may take time ashore at one of
Dunoon, Blairmore or Kilcreggan
Ticketing
Day
A : Same-price round (Bute) trip available for customers from
Largs
and Rothesay. Separate afternoon cruise fare for Largs customers
only
Day B : Same-price round (Upper Firth) trip from all piers
(including those from Largs with time ashore). Two circuits possible
from Largs (additional fare to be charged)
Piers
- Largs is a popular resort with a sizeable local population (11k) and
accessible to a large mainland population. Glasgow is around one hour
distant. Largs is served by rail.
- Rothesay (4.3k) and Dunoon (7.6k) are the main
visitor resorts and host a modest number of holidaymakers in the high
summer season
- Blairmore and Kilcreggan serve remote areas with
opportunities for walking and cycling. Calls by Waverley are important
to help maintain these two traditional steamer piers.
Special Cruises
Option of special cruises, possibly one day per week visiting Tighnabruaich and Tarbert
Season Length
May
to September inclusive. maximum potential sailing days : 153. Certain
midweek days designated off-days for rest and
maintenance Possible restriction to one cruise per day in May and September, especially so in midweek