Segmenting cruise passengers with price sensitivity [An article from: Tourism Management]

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Description:
It has been suggested that discounted cruises have degraded the industry's standards (Berlitz Guide to Cruising and Cruise Ships, Berlitz, Princeton, NJ, 1994), and that value-oriented cruise lines are gaining a competitive advantage over ''high-end'' cruises (http://www.cruisinformationservice.co.uk/press/factsheetdetail.aspx?id=45). This use of price discounting has created new challenges for the cruise industry, as they have attracted a more price-sensitive market than they have in the past. Thus, the purpose of the current study was to segment cruise passengers based on their price sensitivity to determine if price-sensitive markets are desirable. Results revealed that less price-sensitive visitors are more likely to spend more, while visitors who were more price sensitive were more likely to positively evaluate their experiences. Both theoretical and managerial implications are discussed.