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The biggest factor in cruise popularity is cruising's economic advantages over travel alternatives. By employing flags of convenience, cruise lines can take advantage of the least expensive employment and tax laws, giving themselves a 30% cost-advantage over their competition. Additionally, cruise ships' isolation allows them to capture a larger share of travellers' vacation dollars than, for example, a resort hotel where people can leave and spend money elsewhere.

These economic advantages resulted in a better product for the vacation dollar; which in turn created consumer demand; which lead to cruise companies greatly increasing capacity by building new and larger ships.

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