Purpose The purpose of this study is to further explore the effects of customer participation (CP) and service personal values (SPVs) on cruise customer satisfaction (CS) and customer loyalty (CL) by applying the empirical research approach. Design/methodology/approach A self-administered questionnaire was prepared and used to collect data. Exploratory factor analysis and structural equation modeling analysis was used to test the proposed model and hypotheses. Findings The empirical results indicate that CP positively influences SPVs, CS and CL. SPVs have a significant and positive impact on CS as well. Moreover, the study also finds that collectivism has a strong positive effect on CP. Price sensitivity negatively moderates the relationship among CP, CPV, CS and CL. Research limitations/implications The generalizability of the current study findings should be considered or scrutinized in light of the fact that limited samples and cross-sectional data were used. This limitation positions the findings as a continuation of the developing path toward a better understanding of customer behavior rather than a definitive conclusion. Practical implications The study results show that CP has a positive direct effect on SPVs, CS and CL. Even though many researchers have verified the importance and function of CP, there is a lack of literature, which assesses the influence of CP in a cruise industry context. By focusing on this gap, this research makes it feasible to empirically analyze the different effects of CP in relation to SPVs, CS and CL in Chinese cruise preferences. Social implications The study results suggest that CP is a new predictor of CS and CL in the cruise industry. Thus, creating a positive experience through participation is crucial. As customers are co-producers, it is beneficial for the cruise companies to raise labor productivity and reduce cost by guiding and stimulating them to take part in the service-producing process. Originality/value Based on the perspective of service-dominant logic, the purpose of this study is to shed light on the formation process of loyalty behavior of Chinese cruise tourists. The empirical results indicate that CP positively influences SPVs, CS and CL. SPVs have a significant and positive impact on CS as well. Moreover, the study also finds that collectivism has a strong positive effect on CP. Price sensitivity negatively moderates the relationship among CP, CPV, CS and CL.