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Pricing methods and strategies in the cruise line industry: A case study on Carnival Corporation's premium and luxury brands
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
2014 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This research paper investigates the factors affecting pricing strategies and models

within the cruise line industry. The kind of pricing models that can contribute to the

development of pricing strategies and processes within the industry is also being

investigated. The first and the latter are both this research’ purposes and are important

topic for both academic and managerial perspective.

The paper uses Carnival Corporation’s two distinct brands, the premium Holland

America Line and the ultra-luxury The Yachts of Seabourn as a case study to find out

the existing pricing strategies and models in the industry today. Pricing factors and

processes are also taken up. Semi-structured interviews with key personnel within

sales and revenue were done and used as a source for empirical data. Studying the

case’s website also supports the gathered information from the interviews. Scientific

articles and business textbooks were studied for theoretical perspective. Journals

about pricing, pricing in the cruise line and revenue management written in random

by, for example, Phillips (2005), Lieberman (2012) and Oxenfeldt (1973) to name a

few were primarily used. The academic textbooks written by Olve et al. (2013) about

pricing and the method book by Bryman & Bell (2011) are a few of the examples

used amongst others. By analyzing and comparing theoretical information and

empirical data, the author of this research comes up with viable results that aim to

give a better understanding of the subject in both academic and professional fields.

The findings show that the cruise industry still focuses primarily on profit that makes

pricing a critical part of the process. There are several factors affecting price decisionmaking

and strategies that include sales, seasonality, and customer’s feedback. The

primary objectives for these decisions are long-term profit, growth, loyalty of resellers

and brand’s reputation. It was also founded out that the existing price models could be

adjusted in order to conform to the other types of hospitality businesses. One or more

characteristics of the five components in the price model equalizer by Olve et al. can

be used and combined if necessary. These findings have theoretical and practical

implications suggesting that the cruise line industry’s price setting continues to evolve

and adapt when deemed necessary.

Place, publisher, year, edition, pages
2014. , 48 p.
National Category
Economics and Business
URN: urn:nbn:se:uu:diva-227784OAI: diva2:731192
Subject / course
Business Studies
Educational program
Business Aministration and Economics Programme
2014-06-05, Uppsala Universitet Campus Gotland, Cramergatan, Visby, 11:30
Available from: 2014-07-07 Created: 2014-07-01 Last updated: 2014-07-07Bibliographically approved

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