Economics of cruise shipping: the need for a new business model.

Vogel, Michael P.

doi:10.1079/9781780646084.0124

Cited by 3 publications

(8 citation statements)

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“…In this instance, it is possible to find Royal Caribbean’s partnership with a company that manages airport gate services, or Genting’s alliance with a technical wireless service company. Thanks to alliances within the same cruise supply chain, cruise lines are able to extract additional revenues from passengers both onboard (casino, restaurant, entertainment, sport services) and onshore (private islands, traditional events, excursion packages) (Vogel, 2017).…”

Section: Discussion Of the Case Studiesmentioning

confidence: 99%

“…On the other hand, cruise company investments ensure continuity of traffic, thus making cruise traffic less unpredictable. Lastly, as regards passengers, both M&As and alliances enlarge the possibilities to capture revenues streams, due to an increase in market power and in cruisers spending opportunities (Clancy, 2017; Vogel, 2017).…”

Section: Discussionmentioning

confidence: 99%

“…Although the cruise industry has been increasingly characterized by standardization of services and by the importance of cost leadership, differentiation is becoming a relevant competitive weapon. Cruise companies are challenged to create differentiated cruise packages composed by a high-quality level of on-board services and shore-based activities (excursions) offering the chance of visiting new cultures and touristic attractions, together with integrated transfer to/from the ship (Brida et al., 2011; Lee and Ramdeen, 2013; Lekakou et al., 2009; Lois and Wang, 2005; Teye and Leclerc, 1998); in this way, cruise companies may create additional revenue streams through the provision of goods and services sold on board and through the sale of touristic excursions in the port of call (Biehn, 2006; Klein, 2006; Vogel, 2017; Weaver, 2005). Finally, compared to the other traditional segments of the entire tourism sector, cruise companies have the possibility to geographically reposition ships and to exploit the geographical complementarity between the different cruise destination areas connoted by opposite seasonality (Charlier and McCalla, 2006; Rodrigue and Notteboom, 2013).…”

Section: Market Trends and Structure Of The Cruise Industrymentioning

confidence: 99%

“…This allows cruise companies to create a captive market within the vessel and for on-shore excursion services, hence providing additional opportunities of revenue sources (Klein, 2006; Toh et al., 2005). Vogel (2017) states that the onboard revenues of RCCL and Carnival account for 25% of overall revenues, exceeding the sum of their respective costs of onboard business and operating profit.…”

Section: Market Trends and Structure Of The Cruise Industrymentioning

confidence: 99%

“…Following the results of an in-depth systematic review of the cruise research literature, Papathanassis and Beckmann (2011) stated that extant literature is still limited with respect to the wide managerial and economic implications stemming out from cruise activities; in particular, only few academic contributions have addressed strategic management and business administration topics (corporate strategies, managerial accounting, human resource planning and development, supply chain management, and outsourcing) of the cruise companies (Penco et al., 2017; Vogel, 2009, 2017; Weaver, 2005; Wie, 2005), despite the increasing competition and concentration in the industry underline this research domain’s relevance and rationale.…”

Section: Introductionmentioning

confidence: 99%

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Mergers, acquisitions and alliances in the cruise tourism industry

Penco

Profumo

2017

Tourism and Hospitality Research

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The present paper addresses the antecedents of cruise companies’ strategy implementation, focusing on mergers, acquisitions and alliances as potential alternative choices for managers. Specifically, a model for interpreting the drivers of such decisions is proposed, based on two dimensions: (1) the level of riskiness and complexity of the industry and (2) the importance of the acquired resources and capabilities for the competitive advantage of the acquiring firm. The theoretical model is then applied to the cruise industry, through a qualitative analysis on three case studies based on the major companies: Carnival, RCCL, and Star Cruise–Norwegian Cruise Line (Genting Group). Such industry represents an ideal set for studying the issues, as, in the last few years, the growing turbulent environment has increased the number of mergers and acquisitions and strategic alliances with other partners belonging to the same supply chain. The results show that in the cruise tourism industry, the two aforementioned dimensions seem to matter in firms’ choice between the different external growth strategies, highlighting the presence of homogeneous behavioral models among the cruise companies. This contribution presents some valuable research implications, useful for researchers and academics, but also professionals and policy makers may benefit from this knowledge.

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Section: Discussion Of the Case Studiesmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Market Trends and Structure Of The Cruise Industrymentioning

confidence: 99%

Section: Market Trends and Structure Of The Cruise Industrymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Mergers, acquisitions and alliances in the cruise tourism industry

Penco

Profumo

2017

Tourism and Hospitality Research

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#CoronavirusCruise: Impact and implications of the COVID-19 outbreaks on the perception of cruise tourism

Muritala

Hernández‐Lara

Rebull

et al. 2022

Tourism Management Perspectives

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Early in the COVID-19 pandemic, the Diamond Princess became the center of the largest outbreak outside the original epicenter in China. This outbreak which left 712 passengers infected and 14 dead, followed by subsequent outbreaks affecting over one-third of the active ships in the cruise industry's global fleet, quickly became a crisis that captured public attention and dominated mainstream news and social media. This study investigates the perception of cruising during these outbreaks by analyzing the tweets on cruising using Natural Language Processing (NLP). The findings show a prevalent negative sentiment in most of the analyzed tweets, while the criticisms directed at the cruise industry were based on perceptions and stereotypes of the industry before the pandemic. The study provides insight into the concerns raised in these conversations and highlights the need for new business models outside the pre-pandemic mass-market model and to genuinely make cruising more environmentally friendly.

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