Empirical Evidence of Revenue Management in the Cruise Line Industry

Ayvaz-Cavdaroglu, Nur; Gauri, Dinesh K.; Webster, Scott

doi:10.1177/0047287517737178

Cited by 18 publications

(3 citation statements)

References 55 publications

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“…Unlike other service industries (e.g. lodging, restaurants and airlines), cruise lines provide an unusual experience by integrating various parts of the service sectors including accommodation, dining, transportation, entertainment and travel (Ayvaz-Cavdaroglu et al, 2019). In addition, cruise lines offer restricted consumption situations to customers (Tao and Kim, 2019).…”

Section: Introductionmentioning

confidence: 99%

The effects of cruise attributes on impulse buying behavior: the mediating role of impulsive buying tendency

Kwon

Ahn

2021

IJQSS

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Purpose This study aims to examine the effects of cruise attributes on impulse buying of service customers through impulsive buying tendency. Specifically, this study investigates whether service attributes (variety of selection and price) influence the impulsive buying behavior of customers by stimulating their impulsive buying tendency. Design/methodology/approach Partial least squares-structural equation modeling was used to test the hypothesis using a sample of 143 cruise customers. Mediating analysis was conducted to examine whether customer personal traits (impulsivity) mediated the relationship between service attributes and impulsive buying behavior. Findings The findings showed that price attributions had a significant positive direct impact on impulsive buying tendency and behavior, while a variety of selections had a significant direct effect on impulse buying behavior. The results revealed a significant mediating role of impulsive buying tendency in the relationship between price attributions and impulse buying. Originality/value Although studies on the decision-making style of service customers have been widely discussed, a limited number of studies has examined customers’ impulsive buying behavior in the service sector. Considering the importance of impulsive purchasing as a valuable marketing tool, the results of this study can help service providers and researchers enhance their knowledge of the mechanism of impulse buying behavior.

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Section: Introductionmentioning

confidence: 99%

The effects of cruise attributes on impulse buying behavior: the mediating role of impulsive buying tendency

Kwon

Ahn

2021

IJQSS

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“…Service providers often adopt upselling techniques, trying to influence customers to choose more expensive items, thus increasing revenues per purchase (Denizci Guillet, 2020; Heidig et al, 2017; Norvell et al, 2018). Considering the need to present flexible offers (Steffen et al, 2019) and ensure higher profitability through upselling strategies (Ayvaz-Cavdaroglu et al, 2019), a question that arises for travel agencies and other distribution channels for tourism services concerns the design of an offer: Which is the best combination of services to present to customers as a starting point for the customization process?…”

Section: Introductionmentioning

confidence: 99%

Option framing for upselling tourism services: Does cognitive availability prevent irrational choices?

2020

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This article examines the effect of option framing and cognitive load on consumer choices of tourism services. Previous literature has shown that consumers tend to choose more options and spend more money when they begin the choice process from a complete set of options (downgrade/delete framing) than when they start choosing from a more basic set of options (upgrade/add framing). To exam this irrational behavior, we conducted two experimental studies with 561 consumers of leisure travel. The results of the two experiments provided robust evidence on the effect of the downgrade framing strategy on upselling tourism services and revealed that cognitive availability did not prevent consumers from making irrational choices. These findings indicate that decisions involving leisure trips may be even more susceptible than previously thought to cognitive biases and contextual influences due to their emotional and hedonic aspects, extending the existing literature on behavioral economics in tourism.

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“…Evidence suggests that successful application of RM principles in these contexts results in revenue increases of 2% to 5% (Talluri & van Ryzin, 2004). The demonstrated performance effects of RM principles in these “traditional” settings have motivated academics to encourage the adoption of similar RM practices within other tourism-related environments, including restaurants, casinos, spas, parks, entertainment venues, cruise lines, and golf courses (see, e.g., Ayvaz-Cavdaroglu, Gauri, & Webster, 2017; Boo & Kim, 2010; Chen, Tsai, & Chen McCain, 2012; Kimes, Chase, Choi, Lee, & Ngonzi, 1998; Noone, Kimes, Mattila, & Wirtz, 2009; Schwartz, Stewart, & Backlund, 2012). Researchers have argued for expanding the application of RM to these environments—hereafter referred to as nontraditional RM settings—based on the characteristics of relatively fixed capacity, perishable inventory, reservations made in advance, variable demand, segmentable markets, and a relatively high fixed–low variable cost structure (Kimes & Schruben, 2002; Li, Miao, & Wang, 2014).…”

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confidence: 99%

The Uniqueness of Revenue Management Approaches in Nontraditional Settings: The Case of the Golf Industry

Noone

Enz²,

Canina

2019

Journal of Hospitality & Tourism Research

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This study focuses on two demand and supply characteristics that may affect the transferability of revenue management (RM) practices from traditional (e.g., hotels) to nontraditional (e.g., golf, restaurants, entertainment venues) RM settings. Consumption within many nontraditional RM settings is largely discretionary in nature, with the potential to affect how demand and price should be managed across the booking horizon. Equally, operators are often challenged with a high degree of time-based inventory complexity, which may require that price and inventoried demand are managed at a greater level of granularity than traditional RM applications dictate. Using longitudinal golf reservations data, we found that superior revenue performance was associated with capturing a higher proportion of demand early in the booking horizon, rather than protecting inventory at higher prices for late bookers. Competitive price positioning in which price was higher than the competition during within-day peak-demand tee times also shaped revenue gains. Similarly, conversion management was found to be most critical during within-day peak demand periods. These findings suggest that traditional RM strategies may not apply in nontraditional RM settings where one or both of the demand and supply characteristics of interest is present. The implications of these findings for practitioners are explored.

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Empirical Evidence of Revenue Management in the Cruise Line Industry

Cited by 18 publications

References 55 publications

The effects of cruise attributes on impulse buying behavior: the mediating role of impulsive buying tendency

The effects of cruise attributes on impulse buying behavior: the mediating role of impulsive buying tendency

Option framing for upselling tourism services: Does cognitive availability prevent irrational choices?

The Uniqueness of Revenue Management Approaches in Nontraditional Settings: The Case of the Golf Industry

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