IDEAS home Printed from https://ideas.repec.org/a/pal/jorapm/v21y2022i5d10.1057_s41272-021-00362-7.html
   My bibliography  Save this article

Has COVID-19 had an impact on prices? The case of the cruise industry

Author

Listed:
  • Josep Maria Espinet Rius

    (Universitat de Girona
    Facultat de Ciències Econòmiques i Empresarials)

  • Ariadna Gassiot-Melian

    (Facultat de Turisme)

Abstract

One of the previously unknown and unexpected impact of COVID-19 is its effect on prices. The aim of this research is to estimate how prices in the cruise industry have changed since COVID-19 was declared a pandemic. To carry out this research the authors created an extensive database of prices from February 2019 to March 2021, which were collected from a leading Spanish online travel agency (OTA). Methodologically, this research uses descriptive and hedonic analyses. The main conclusion is that cruise prices have reduced, on average, by 4.3%, although there are relevant differences between cruise companies, zone of departure, size, antiquity and rating of the ships, and the number of days between the date of capture and the date of cruise departure. Finally, several managerial implications are suggested from the results of this study.

Suggested Citation

  • Josep Maria Espinet Rius & Ariadna Gassiot-Melian, 2022. "Has COVID-19 had an impact on prices? The case of the cruise industry," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(5), pages 538-552, October.
    • Handle: RePEc:pal:jorapm:v:21:y:2022:i:5:d:10.1057_s41272-021-00362-7
    DOI: 10.1057/s41272-021-00362-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41272-021-00362-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41272-021-00362-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Choquet, Anne & Sam-Lefebvre, Awa, 2021. "Ports closed to cruise ships in the context of COVID-19: What choices are there for coastal states?," Annals of Tourism Research, Elsevier, vol. 86(C).
    2. Josep Mª Espinet Rius, 2018. "Global and local pricing strategies in the cruise industry," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(5), pages 329-340, October.
    3. Liu, Bingjie & Pennington-Gray, Lori & Krieger, Janice, 2016. "Tourism crisis management: Can the Extended Parallel Process Model be used to understand crisis responses in the cruise industry?," Tourism Management, Elsevier, vol. 55(C), pages 310-321.
    4. Zhang, Ke & Hou, Yuansi & Li, Gang, 2020. "Threat of infectious disease during an outbreak: Influence on tourists' emotional responses to disadvantaged price inequality," Annals of Tourism Research, Elsevier, vol. 84(C).
    5. Stephan Haroutunian & Pandelis Mitsis & Panos Pashardes, 2005. "Using Brochure Information for the Hedonic Analysis of Holiday Packages," Tourism Economics, , vol. 11(1), pages 69-84, March.
    6. Josep Maria Espinet-Rius & Ariadna Gassiot-Melian & Ricard Rigall-I-Torrent, 2021. "Price determinants and classification of tactical pricing decisions in the cruise industry," Maritime Policy & Management, Taylor & Francis Journals, vol. 48(2), pages 239-258, February.
    7. Alegre, Joaquín & Sard, Maria, 2015. "When demand drops and prices rise. Tourist packages in the Balearic Islands during the economic crisis," Tourism Management, Elsevier, vol. 46(C), pages 375-385.
    8. J.M. Espinet & M. Saez & G. Coenders & M. FluviÃ, 2003. "Effect on Prices of the Attributes of Holiday Hotels: A Hedonic Prices Approach," Tourism Economics, , vol. 9(2), pages 165-177, June.
    9. Yang, Yang & Zhang, Hongru & Chen, Xiang, 2020. "Coronavirus pandemic and tourism: Dynamic stochastic general equilibrium modeling of infectious disease outbreak," Annals of Tourism Research, Elsevier, vol. 83(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yang, Yang & Zhang, Carol X. & Rickly, Jillian M., 2021. "A review of early COVID-19 research in tourism: Launching the Annals of Tourism Research's Curated Collection on coronavirus and tourism1," Annals of Tourism Research, Elsevier, vol. 91(C).
    2. Josep Maria Espinet & Ariadna Gassiot-Melian & Ricard Rigall-I-Torrent, 2020. "An analysis of price segmentation in the cruise industry," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(3), pages 162-189, June.
    3. Fluvià, Modest & Rigall-I-Torrent, Ricard & Espinet, Josep Maria & Garriga, Anna & Saló, Albert, 2011. "Precios implícitos de los atributos de los productos turísticos: ¿Qué esconde el efecto de la localización?/Implicit Prices of the Attributes of Tourism Products: What is Hidden Behind Location?," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 781-802, Diciembre.
    4. Alegre, Joaquín & Cladera, Magdalena & Sard, Maria, 2013. "Tourist areas: Examining the effects of location attributes on tour-operator package holiday prices," Tourism Management, Elsevier, vol. 38(C), pages 131-141.
    5. Fleischer, Aliza, 2012. "A room with a view—A valuation of the Mediterranean Sea view," Tourism Management, Elsevier, vol. 33(3), pages 598-602.
    6. Francesco Aiello & Graziella Bonanno & Francesco Foglia, 2022. "On the choice of accommodation type at the time of Covid-19. Some evidence from the Italian tourism sector," Current Issues in Tourism, Taylor & Francis Journals, vol. 25(1), pages 41-45, January.
    7. Hui Yan & Haixiang Wei & Min Wei, 2021. "Exploring Tourism Recovery in the Post-COVID-19 Period: An Evolutionary Game Theory Approach," Sustainability, MDPI, vol. 13(16), pages 1-21, August.
    8. Ying Wang & Hongwei Zhang & Wang Gao & Cai Yang, 2023. "Spillover effects from news to travel and leisure stocks during the COVID-19 pandemic: Evidence from the time and frequency domains," Tourism Economics, , vol. 29(2), pages 460-487, March.
    9. Liu, Anyu & Kim, Yoo Ri & O'Connell, John Frankie, 2021. "COVID-19 and the aviation industry: The interrelationship between the spread of the COVID-19 pandemic and the frequency of flights on the EU market," Annals of Tourism Research, Elsevier, vol. 91(C).
    10. Rigall-I-Torrent, Ricard & Fluvià, Modest, 2011. "Managing tourism products and destinations embedding public good components: A hedonic approach," Tourism Management, Elsevier, vol. 32(2), pages 244-255.
    11. Rigall-I-Torrent, Ricard & Fluvià, Modest & Ballester, Ramon & Saló, Albert & Ariza, Eduard & Espinet, Josep-Maria, 2011. "The effects of beach characteristics and location with respect to hotel prices," Tourism Management, Elsevier, vol. 32(5), pages 1150-1158.
    12. Aliza Fleischer, 2012. "A Room with a View — A Valuation of the Mediterranean Sea View," ERSA conference papers ersa12p144, European Regional Science Association.
    13. Jelena Tepavčević & Ivana Blešić & Marko D. Petrović & Svetlana Vukosav & Milan Bradić & Vuk Garača & Tamara Gajić & Dobrila Lukić, 2021. "Personality Traits That Affect Travel Intentions during Pandemic COVID-19: The Case Study of Serbia," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    14. Kock, Florian & Nørfelt, Astrid & Josiassen, Alexander & Assaf, A. George & Tsionas, Mike G., 2020. "Understanding the COVID-19 tourist psyche: The Evolutionary Tourism Paradigm," Annals of Tourism Research, Elsevier, vol. 85(C).
    15. Cirer-Costa, Joan Carles, 2017. "Estrategias de fijación y ofuscación de precios en los hoteles de sol y playa [Pricing and obfuscation strategies for sun and beach hotels]," MPRA Paper 81823, University Library of Munich, Germany.
    16. Becerra, Manuel & Santaló, Juan & Silva, Rosario, 2013. "Being better vs. being different: Differentiation, competition, and pricing strategies in the Spanish hotel industry," Tourism Management, Elsevier, vol. 34(C), pages 71-79.
    17. Miao, Li & Im, Jinyoung & Fu, Xiaoxiao & Kim, Haemi & Zhang, Yi Estella, 2021. "Proximal and distal post-COVID travel behavior," Annals of Tourism Research, Elsevier, vol. 88(C).
    18. Abrate, Graziano & Viglia, Giampaolo, 2016. "Strategic and tactical price decisions in hotel revenue management," Tourism Management, Elsevier, vol. 55(C), pages 123-132.
    19. de la Peña, Mario Raúl & Núñez-Serrano, Juan A. & Turrión, Jaime & Velázquez, Francisco J., 2016. "Are innovations relevant for consumers in the hospitality industry? A hedonic approach for Cuban hotels," Tourism Management, Elsevier, vol. 55(C), pages 184-196.
    20. Borowiecki, Karol Jan & Pedersen, Maja U. & Mitchell, Sara Beth, 2023. "Using big data to measure cultural tourism in Europe with unprecedented precision," Discussion Papers on Economics 5/2023, University of Southern Denmark, Department of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorapm:v:21:y:2022:i:5:d:10.1057_s41272-021-00362-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.