Are cruise cost factors affected by the place and the size of the cruise company?
DOI:
https://doi.org/10.33175/mtr.2022.257243Keywords:
Cruise, Cruise industry, Cost factors, Cruise company, Analytic Hierarchy Process, MediterraneanAbstract
The aim of this study is to investigate the factors that affect and influence the cost of a cruise company, within the frame of different cruise ship sizes and operations in dissimilar geographic areas. For the purposes of this research, a small (deluxe) cruise company (SCC), offering specialized programs, and a larger (mass) cruise company (LCC), headquartered in Greece and operating in the East Mediterranean, are compared; two similar types of companies, headquartered in Italy, and operating in the Central Mediterranean, were selected for a comparison study. The methodology applied is the Analytic Hierarchy Process (AHP). Our study argues for the significance of cruise ship size and the cruise operation area to the general cost of a cruise ship, as well as to differentiations on specific cruise factors. Financial cost is the major driver for the total cost for SCCs, as well as for LCCs, in both countries. For instance, a shipping company could decide whether to operate in a specific market, based on destination selection with the specific cost factors, and which size of cruise ship could minimize certain cost components for the vessel and, eventually, for the cruise itinerary and the company. The results have significant implications for cruise ship management and operations, but also contribute to the limited existing literature.
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