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Compensation mechanism for port time extension in cruise line designs

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  • Sun, Ling
  • Luo, Meifeng
  • Yang, Yanbin

Abstract

Low onboard spending and insufficient onshore time are the two main problems affecting the earnings of both cruise lines and port cities in the Chinese cruise market. However, increasing port berthing time can benefit port cities at the cost of cruise lines. To balance the two parties, we propose a compensation mechanism based on the cooperative game-theory, where the city subsidizes the cruise ship to stay longer to maximise overall incremental benefits. A questionnaire survey is conducted to collect data on tourists' spending and onshore time in different port cities and their budgets. The feasibility of the mechanism depends on the sailing distance of the cruise ship, the number of connected ports, and the tourists’ average budget. This compensation mechanism can enhance the total benefits of the cruise chain, improve customer satisfaction, and provide a new model for developing the cruise industry in China.

Suggested Citation

  • Sun, Ling & Luo, Meifeng & Yang, Yanbin, 2023. "Compensation mechanism for port time extension in cruise line designs," Transport Policy, Elsevier, vol. 139(C), pages 144-154.
    • Handle: RePEc:eee:trapol:v:139:y:2023:i:c:p:144-154
    DOI: 10.1016/j.tranpol.2023.06.009
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    References listed on IDEAS

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