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Abstract

The global cruise industry has experienced persistent growth dynamics over the last two decades, with an impressive rebound after the 2008 financial crisis, unlike commercial shipping. Globalization, restructurings, mergers and a diverse bundle of travel and tourism services to cater for different passenger profiles have boosted robust revenue and profitability growth. Major cruise companies deploy ambitious investment plans to expand and renew their expensive fleet with larger modern vessels of high value. The mix of funding sources to finance these capital-intensive projects is critical and exerts a direct impact on the cost of capital. The paper contributes a rigorous corporate financial performance evaluation in the cruise sector and attempts to shed light on managerial financial efficiency, capital structure options, solvency conditions and corporate value dynamics. A sample of leading cruise companies, jointly holding a dominant market position, is incorporated to empirically investigate and assess their financial, accounting and stock market performance, based on convenient financial ratios and established market metrics. The detrimental impact of the recent coronavirus pandemic on the cruise sector is also discussed. This original study attempts to bridge the relevant research gap, as past literature remains surprisingly thin on this critical topic. A set of challenging and innovative contributions is delivered for the financial performance of major cruise companies, for the first time to the authors' knowledge, in support of efficient managerial implications and recommendations.

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... SCs, and the risks inherent to these, are somewhat industry-specific, and so each industry requires analysis particular to itself. The cruise industry is the fastestgrowing component of mass tourism (8,9), with an annual growth rate of around 7% on demand over the past decade (8,10,11). The cruise industry makes a significant contribution to the global economy by generating around US$150 million in revenue and creating 1,177,000 jobs in 2019 (11). ...
... SCs, and the risks inherent to these, are somewhat industry-specific, and so each industry requires analysis particular to itself. The cruise industry is the fastestgrowing component of mass tourism (8,9), with an annual growth rate of around 7% on demand over the past decade (8,10,11). The cruise industry makes a significant contribution to the global economy by generating around US$150 million in revenue and creating 1,177,000 jobs in 2019 (11). ...
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The increased frequency and severe consequences of risks in the cruise industry have attracted increasing attention from both academics and practitioners, especially after the 2012 ‘Costa Concordia’ disaster and the 2020 coronavirus outbreak on the ‘Diamond Princess’. Although the literature on risk studies associated with the cruise industry and supply-chain risk management is growing, the extant literature lacks a study to view risks in the cruise industry associated with the supply chain. This paper addresses this gap by reviewing the literature on risks related to the cruise industry and general supply-chain risks to create a framework of cruise supply-chain risks. Then, semi-structured interviews were conducted to validate the identified risks and explore potential undiscovered risks. A novel risk typology of the cruise supply chain was then built based on the literature review and the empirical study. This includes macro risks, safety, security, and health risks, information risks, and supply risks. This framework can be applied for the purpose of systematically identifying the risks and their impacts on the cruise supply chain. This paper contributes to the development of a comprehensive cruise supply-chain risk classification with a detailed explanation of each risk in the cruise supply chain, which can be used by stakeholders in the cruise industry to identify and measure the impact of each risk. Additionally, this paper provides avenues for future research by scholars interested in assessing and managing cruise supply-chain risks.
... According to UNWTO estimates, the effects of COVID-19, which resulted in partial or total lockdown worldwide, have slowed economic growth, with many negative consequences in many sectors of the economy, including the travel and tourism industries and, therefore, on cruises themselves (UNWTO, 2020;Richter, 2020). The financial impact on cruise ship companies is mainly on their revenue and profits, while at the same time burdening them with an increase of certain expenses, such as the cost of cancellations, the cost of mooring ships in quarantined ports, and the cost of maintaining ships, even when they remain inactive (Syriopoulos et al., 2020). Additionally, the decline in liquidity will lead cruise companies to increase debt and, thus, further worsen their financing costs, amid a pessimistic climate in international stock markets (McKinsey, 2020;Syriopoulos & Bakos, 2019). ...
... Additionally, the decline in liquidity will lead cruise companies to increase debt and, thus, further worsen their financing costs, amid a pessimistic climate in international stock markets (McKinsey, 2020;Syriopoulos & Bakos, 2019). In these adverse conditions, large cruise companies have seen their investment-grade statuses downgraded because of the "high level of uncertainty" (Nagarajan, 2020), which is the consequence of revenue and profits restriction, along with the increase of operational and financial costs (Syriopoulos et al., 2020). ...
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The aim of this study is to investigate the factors that affect and influence the cost of a cruise company, within the frame of different cruise ship sizes and operations in dissimilar geographic areas. For the purposes of this research, a small (deluxe) cruise company (SCC), offering specialized programs, and a larger (mass) cruise company (LCC), headquartered in Greece and operating in the East Mediterranean, are compared; two similar types of companies, headquartered in Italy, and operating in the Central Mediterranean, were selected for a comparison study. The methodology applied is the Analytic Hierarchy Process (AHP). Our study argues for the significance of cruise ship size and the cruise operation area to the general cost of a cruise ship, as well as to differentiations on specific cruise factors. Financial cost is the major driver for the total cost for SCCs, as well as for LCCs, in both countries. For instance, a shipping company could decide whether to operate in a specific market, based on destination selection with the specific cost factors, and which size of cruise ship could minimize certain cost components for the vessel and, eventually, for the cruise itinerary and the company. The results have significant implications for cruise ship management and operations, but also contribute to the limited existing literature.
... Net profit margin on cruise industries exhibit consistently robust growth trends for the leading cruise players, over 2016-2019, contrary to most commercial shipping market segments that experienced abrupt and persistent revenue declines since the outbreak of 2008 global financial crisis, cruise shipping has seen a robust resistance and relatively rapid recovery (Syriopoulos et al., 2020). In 2019, Carnival recorded cruise revenue at $20.8 billion (+10.3%, ...
... 2019/2018), similarly, Royal Caribbean also gained robust revenues at $10.9 billion (+15.3%, 2019/2018), and Norwegian Cruise Line, on the other hand, saw comparatively modest revenue growth at $6.5 billion (+6.6%, 2019/2018) (Syriopoulos et al., 2020). Jensen et al. (2020) evaluated transformational leadership drawing upon media sources which were content analysed to create individual CEO profiles, and these profiles were then given to a panel of three judges who rated the CEOs on their transformational leadership style, and finally the results showed significant associations between intellectual stimulation and inspirational motivation respectively, and different financial performance indicators. ...
Article
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Net profit margin is one indicator of the company's financial performance. Net profit margin on cruise industries, for example, exhibit consistently robust growth trends for the leading cruise players, over 2016–2019, contrary to most commercial shipping market segments that experienced abrupt and persistent revenue declines since the outbreak of 2008 global financial crisis, cruise shipping has seen a robust resistance and relatively rapid recovery. Spurred by the growing importance of institutional investors, capital markets in emerging economies experience rapid growth. Specifically, equities ownership in emerging capital markets have tripled since the early 1990s. Another factor attracting equities investment involves institutional investors who offer potential for increased monitoring in the invested firms. The objective of this research is to determine the factors associated with net profit margin. I presented a literature study using systematic literature review of relevant publications and as a result of this process, 18 articles are included and then examined the bibliographical references to check the validity of the inquiry and to avoid any potential omissions. I identify several variables that affect and affected by net profit margin.
... In the past two decades, the cruise industry has been growing dynamically [6]. According to the Cruise Line International Association (CLIA), in 2019, the global total number of cruise passengers increased to more than 29 million. ...
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The cruise shipping market has been growing dynamically in the past two decades. This study presented an empirical analysis of the Asian cruise shipping network (ACSN) in which the nodes are cruise ports and links are cruise routes connecting the ports, using complex network analysis. An analysis of 245 voyages operated by 16 cruise lines between 215 ports in 26 countries found that ports in the ACSN are connected by 704 links. The ACSN is a small-world network with a small average path length and a high clustering coefficient, and its degree distribution follows an exponential function. A small number of ports have high connectivity, and most ports have low connections. Most high-degree ports connect to low-degree ports. The important roles and properties of ports vary depending on centrality measures.
... The works [1,2,5,6,11,12,13] provide the results of research into the impact of the COVID-19 pandemic on the functioning and development of sea cruising. Also in scientific works [3,4,7,8,9,10] justification and analysis of development of cruise transport and the industry as a whole are carried out. The team of authors Aleksandar Radic, Michael Lück, Amr Al-Ansi, Bee-Lia Chua, Sabrina Seeler, António Raposo, Jinkyung Jenny Kim and Heesup Han have considered important issues of sanitary and epidemiological standards on board liners to ensure passenger safety. ...
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Over the past 15 years, sea cruising has been one of the most sought after and profitable trips in the tourism industry, but the pandemic of the new coronavirus infection COVID-19 has made a difference. This topic is relevant, as identifying the key areas for sea cruise recovery and how to implement them in the face of a new coronavirus infection is a major prospect for the development of the field. There is a need to understand how the cruise industry can avert a large-scale crisis and over what period of time this can happen. This article has identified the main reasons for the collapse of the sea cruise industry in the face of a new coronavirus infection. It also analysed statistics on passenger traffic, cash turnover and financial results of the world’s five largest cruise companies, comparing their main characteristics. The article identified the main precautions that have been taken on cruise ships to prevent the spread of the new coronavirus infection COVID-19 after the reopening of cruise companies in mid-2021. The prospects for resumption of sea cruises and the negative factors that reduce their attractiveness, based on the experience of the COVID-19 pandemic, were also considered.
... Performance has been largely used as organizational, firm or business performance in the extant literature. The pandemic served as a reminder to business leaders of the critical nature of expanding firm performance metrics to include resilience, responsiveness, and configurability (Syriopoulos, Tsatsaronis & Gorila, 2020). The digital health theme emphasizes the latest technologies in digital healthcare technologies. ...
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Since the outbreak of the COVID-19 pandemic, countries have concentrated on developing policies that encourage the creation of more innovative products and services in response to the global health emergency. Effective collaboration, communication, and Open Innovation (OI) among government entities, education and research institutions, and the private sector have been critical to each country's overall effectiveness during the economic crisis. The objective of this paper is to examine the relationship between innovation and COVID-19 critically to have a better understanding of future research and practice developments. A systematic evaluation was conducted, analyzing papers on innovation and the COVID-19 pandemic. A total of 218 studies were analyzed to determine the essential research directions in this domain. Our suggested framework is made of aggregate components, which include technology adaption, sustainable development, healthcare, and sustainable economic performance. These components form the basis for the identification of emerging research hotspots in the field of COVID and innovation, as well as frame the COVID-19 issue as an opportunity to raise awareness about the crucial role of innovation in business and society at large.
... 4. Although these figures are from 2010, Syriopoulos et al. (2020) estimated the pre-COVID market share of these three lines to be a combined 79.5%. In essence, nothing had changed since 2010 and prior to the COVID-19 epidemic. ...
Article
Purpose The purpose of this paper is an archival study of images taken from cruise brochures available in New Zealand from the late twentieth century and early twenty-first century. The investigation adds to previous work undertaken on cruise ship posters and to the discussion surrounding how cruise lines motivated customers to purchase a cruise. Design/methodology/approach An archival approach was taken. The aim of the research is to explain how images used in the brochures have their origin in the mid-twentieth century concept of motivational research. In doing so, the work of Veblen (1899), Lazarsfeld (1935) and Packard (1957, 1959) are used as a foundation to illustrate how more recent commentators, such as Gad (2016) and Jamieson (1983), can be evoked. Findings Analysis of the images presented builds upon previous work done on cruise ship posters. Previous examinations used mid-twentieth century posters to show how the ship was slowly being eroded. The current work illustrates how the brochure evolved to entice consumers to purchase. Analysis of the images suggests that motivational theory is alive and well within the cruise industry. Research limitations/implications This study is constructed around the archival holding of the National Maritime Museum of New Zealand. As such, the study does not include information that does not form part of this holding. Practical implications New Zealand underwent large structural, economic and social change between 1984 and 2000. During that time, there was growth of income inequity. This provided some with greater disposable income for leisure and travel. While the following survey concerns cruise ship brochures, an examination of airline, resort and hotel advertising may be worthy of a companion study. Originality/value The cruise ship brochure available to New Zealand customers in the last quarter of the twentieth century demonstrated the ship is not centre stage. In this regard, the following work adds to previous work conducted using posters and an understanding of the evolution of cruise ship advertising in emergent modern markets.
... Among the three largest cruise ship companies, Royal Caribbean lost USD 5.2 billion (The Maritime Executive, 2021a), Carnival Cruises lost USD 10.2 billion (Fortune, 2021), and Norwegian Cruise Line lost USD 2.2 billion (Globenewswire, 2021) in 2020. However, after several years of sustained growth, these sizeable companies have accumulated enough financial resources to withstand the onslaught of the crisis (Syriopoulos et al., 2020). However, some smaller companies have not been able to endure the ravages of the crisis that drove them to the point of bankruptcy as in the case of Pullmantur, CMV, or Jaleesh Cruises (The Maritime Executive, 2021b). ...
Article
This research examines how fear of the crisis affects the mental health of hospitality workers in the cruise industry by performing a cross-sectional survey and using partial least squares model. Results confirm that fear of pandemic-induced shutdown negatively affects the mental health of cruise ship employees. The moderating effect of perceived employability outside the cruise ship industry and family emotional support are also uncovered. This study successfully consolidates the literature on job demand, job resources, work engagement, and well-being to determine the complex essence of cruise ship employees’ work engagement and well-being. Theoretically, this study expands the scarce literature that links the fear of the crisis with employees’ poor mental health. Some previous studies have examined this relationship in other contexts of economic crisis throughout history, but, for obvious reasons, none of these studies have had the opportunity to investigate a global economic crisis associated with a health crisis.
... Other maritime sectors were also impacted, but the trade did not stop to ensure the movement of goods [18]. The impacts on the cruise sector have been a subject of avid research in terms of economic impacts (e.g., [19]), social impacts (e.g., [20]), and environmental impacts (e.g., [4]). The topic is discussed globally, and research activities are not concentrated in a country/region/continent. ...
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Maritime sectors have always dealt with uncertainties and disruptions. The COVID pandemic confronted the cruise industry with profound, wide-ranging, and lasting challenges while disrupting normal operations. Although the cruise industry contributes to the implementation of the United Nations Sustainable Development Goals (UN SDGs), resumption and sustainable cruising requires the industry to adapt to the challenges presented. To this end, the paper suggests adaptive actions for the cruise sector to respond to the pandemic and links the actions to the UN SDGs to highlight their sustainable contributions. A system thinking approach is applied and a literature review is conducted to identify suitable adaptive actions. This paper shows the importance of UN SDGs 3, 4 and, in particular, 17 for sustainable cruising. The results of this paper provide support for informed decision-making to increase the cruise industry’s sustainability. This paper recommends that stakeholders: 1- identify drivers and barriers of sustainable cruising, 2- adapt to changes and embrace the UN SDGs, as they provide a platform for realizing sustainability, and 3- use educational programs to improve and transfer knowledge on sustainable cruising between academia and policymakers.
... Moreover, through this strategy, cruise lines provide enriched, upgraded, and differentiated on-board amenities, facilities and services that allow on-board market segmentation [22]. The leading cruise companies have ambitious and highly capitalintensive investment plans under development, with an active newbuilding order book for vessels of larger carrying capacity, expensive technological advances, and modern facilities to cater to diversified cruise passenger needs, complying at the same time with strict environmental conditions [30]. The second is the endorsement of deployment strategies eying the expansion of the number of destinations included in cruising itineraries, calling new and most popular markets at an extend that regularly tests the carrying capacity of port-cities and destinations [22,31]. ...
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Objective This study aims to investigate the degree of concentration and the competitive positions of the Baltic cruise port network. Methods A set of 29 Baltic ports are analysed, market concentration is evaluated using the analytical technique of the Herfindahl–Hirschman index, and competitive positions are determined through portfolio analysis based on the Boston Consulting Group matrix from 2000 to 2019. Results The Herfindahl–Hirschman index indicates that the Baltic cruise port system is unconcentrated with an average score of 0.11 for the analysed period, suggesting that eight of the twenty-nine ports are the dominant ports in the Baltic. Portfolio analysis results suggest that the hierarchy picture of competitive positions is dynamic and has changed over time. The Baltic cruise port system has a wide range of competitive positions. Kiel and Rostock becoming mature leaders is one of the most relevant changes in competitive positions. Implications of the research This study contributes to the literature not only by investigating the competitive positions of the second most important European operational area for cruise ships but also by filling the gap in research on the concentration and competitive strategic positions of Baltic cruise ports. This research allows seaport operators to visualise the position and progress of selected ports and predict the possible future seaport developments.
... During 2020 cruise companies have experienced detrimental financial implications, in terms of revenue and profits and at the same time of upward additional costs (for instance, costs associated with substantial refunds for cancellations, costs associated with docking ships at ports where ships were quarantined, costs of maintenance even when not sailing for utilizing cruise ship engines to provide power to maintain onboard services, etc.) (Syriopolous et al., 2020). ...
Article
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The cruise industry is a market largely belonging to a few large groups that operate mainly through a variety of brands and which has seen significant growth dynamics in the last 20 years. Historically, most of the passengers came from the U.S. while the main geographic areas involved in cruises are the Caribbean / Bahamas / Bermuda. The impact of the pandemic caused by COVID-19 was very strong, bringing the market, in terms of the number of passengers carried and depending on the statistical sources used, back to the levels recorded in 1999. Some episodes of COVID contamination that occurred onboard cruise ships in February / March 2020 (with more than 3,900 passengers and crew involved and over 110 deaths), led to the total suspension of activities and also caused serious damage to the image of safety onboard. This research concerns the economic, financial and statistical results recorded in 2020 regarding the main cruise groups (Carnival Corporation, Royal Caribbean Cruises, Norwegian Cruise Line, MSC Cruises). These results appear to be largely influenced by the pandemic. The research is carried out through the analysis of the annual reports, the deployment of the ships and the trend of stock market prices for listed groups. The strategies used by these groups to deal with the current crisis are also considered, along with the main changes that occurred in terms of market exit / new entries of companies. The conclusions concern the future implications in the cruise industry both in terms of the market and the timing of recovery, also in relation to the medical and therapeutic prerequisites required and adopted in the various countries concerning both the demand and supply of cruises.
... This globally leisure-based industry has experienced an annualized growth rate of almost 8% per annum (Thomas, 2015). In 2019 alone, cruise lines carried over 30 million passengers (CLIA, 2020) and contributed approximately USD $685 billion to the global travel industry (Syriopoulos, Tsatsaronis, M., & Gorila, 2020). According to CLIA (2020), cruise lines' ability to offer a unique travel experience with a minimal carbon footprint is the reason why cruises are a popular choice. ...
... Recent studies have shed light on the effects of COVID-19 on various aspects of the shipping industry, for example, impacts on different maritime vessels (Depellegrin et al., 2020), the response of the shipping freight rates (Michail and Melas, 2020), the effect on transport volume and freight capacity (Loske, 2020), the impact on seafarers' life in maritime vessels (Doumbia-Henry, 2020), on global maritime mobility (Millefiori et al., 2020), on cruise industry (Syriopoulos et al., 2020) etc. However, the effect of COVID-19 on shipping stocks has not yet been investigated. ...
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This study examines the stock markets’ response to the maritime shipping industry during the COVID-19 pandemic. Using the daily data of the listed shipping companies in the New York Stock Exchange (NYSE), this study adopted the event study methodology to find the short-term effects of this outbreak. We classified the four initial COVID-19 outbreak news events as pessimistic and four subsequent events as optimistic. We find that the maritime stocks reacted negatively in responses to the critical COVID-19 declarations during cynical events. The investors’ reactions reached the lowest minimum values (−20.73%) when the announcement of COVID-19 was a worldwide pandemic by the WHO and the travel ban by the US from 26 European countries. However, some initiatives such as extra-economic stimulus by the United States attained the highest positive reaction (12.45%). The event study’s findings are also primarily corroborated by in-depth financial performance analysis of individual companies. In general, our findings suggest that stock markets react quickly to news about the COVID-19 pandemic, and this response varies with the level of outbreak and hope of recovery.
Article
The impact of Covid-19 on the global economy’s functioning and the long-term growth of supply chains was first reported in Türkiye in March 2020. The purpose of this study is to determine whether the Covid-19 pandemic has had an impact on the financial and economic structure performance of Turkish sea freight transport sector, as well as how the sector has adapted to the new reality brought on by Covid-19. In this regard, the consolidated financial statements of 997 companies for the year 2020 were studied using ratio analysis, and the results were compared to the financial outputs of the 2008 global financial crisis and the European sovereign dept crisis. As a result of the study, it was determined that the sector’s response to crises in different time periods varied. In order to avoid debt default during the pandemic, the capital structure restricted short-term resources while increasing long-term resources. Despite the pandemic conditions, it has been noticed that there are no barriers to accessing money market instruments in the sector, that the working capital structure has been enhanced, and that a balanced financing plan has been established to ensure the continuity of cash flows. This is the first study that analyses the sector as a whole, reveals the financial and economic repercussions of the pandemic on the sector, and compares these effects to those of recent financial crises. In addition, authorities of the maritime transport industry in other countries will find this helpful research for conducting comparative analyses, and the findings can be generalised.
Article
Corporate social responsibility (CSR) attracts steaming attention in global maritime business, stimulated by critical priorities, such as the IMO 2020 regulations for environmental compliance and initiatives including the Poseidon Principles and ESG practices. The CSR implications for shipping corporate performance and value creation deserve updated empirical investigation. Based on international standards and ISO 26000 regulations, the paper proposes and sets up an innovative Corporate Social Responsibility (CSR) Index. This challenging metric tool is incorporated on a sample of 50 listed shipping companies in NYSE, NASDAQ, and Oslo markets, covering broadly all major shipping business sectors (bulks, tankers, containers, LNGs, cruises), over 2010–2019. The proposed CSR Index integrates 17 CSR components based on the ISO 26000 standard, as an alternative empirical index of the CSR impact on shipping company financial performance and value. The empirical results support the hypothesis of a significant positive correlation between CSR and shipping corporate performance and value and underline the preference of investors for shipping companies with established good CSR practices.
Article
The article is devoted to the study of sea cruises. What distinguishes them from other types of cruises is the use of large cruise ships. The purpose of most travel is to provide passengers with the opportunity to relax and visit different countries. The study shows how cruise tourism developed, how it experienced the most difficult crises (the SARS epidemic, the 2008-2009 recession, the COVID-19 pandemic), as well as a quantitative and qualitative analysis, a comparison of maritime and world tourism indicators. It has been proven that the sea cruise market survives crises much more easily than other industries.
Article
Cruise tourism has been a fast-growing industry and one of the key factors of success in this industry is the ability to create highly seductive itineraries, capable of attracting tourists while maximizing the total profit for the cruise shipping company. Itineraries must be carefully selected, combining a maximization of the total attraction value of the itinerary, given by the destinations and attractions included, with the minimization of the total cost of the itinerary. The objective of this paper is to develop a mixed integer programming optimization model to find optimum cruise ship itineraries. The model presented in this paper calculates cost and revenue of the itinerary separately, using a cost structure based on the cruise ship's size and the duration of the itinerary, and a revenue structure based on the month of the year and the selected ports attractiveness. An application is made to evaluate possible new optimal cruise itineraries along the Atlantic coast of the Iberian Peninsula and Morocco. The results confirm that an increased profit is possible during the Summer season and show clear opportunities for new cruise itineraries in this region, calling ports which are not currently involved in cruising activities, but which present advantages for cruise itinerary design as transit ports or suitable gateways for major attractions.
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India stands second-largest telecommunications market in the world. As of January 2021, the total subscriber base in the country was at 1,183.49 million, while Gross revenue of the telecom sector stood at US$ 9.35 billion in the third quarter of financial year 2021. Since last five years there are lot of problems and issues faced by small companies who were brutally crushed by telecom leader. The paper is an attempt to study financial performance of major telecom companies of India after entry of Reliance JIO.
Chapter
This chapter discusses the differences between luxury yachting and luxury cruising. Relevant theoretical knowledge on luxury, with a focus on signalling wealth, privacy and exclusivity, underpins the discussion and helps to untangle the experiences in this industry. The overall aim is to analyse the differences between the two types of holidays at sea and evaluate the main reasons why customers choose one or the other. This chapter considers such aspects as access, privacy, entertainment, enrichment and culinary experiences. It establishes that both segments have considerable value to the guest, and that the COVID-19 pandemic has played a part in the rise in the luxury yachting sector which offers more private and exclusive experience. A growing demand for small-ship cruising is also highlighted. It has been observed that larger cruise lines have been affected the most by the pandemic and their recovery from the pandemic’s effects will be the longest.
Article
Shore excursions are an important element of the leisure cruise product, reflecting the perceived attractiveness of a cruise itinerary and thus influencing the overall cruise experience. This research systematically explores characteristics of global cruise shore excursions using data collected from one of the world's largest cruise lines, Royal Caribbean International, which markets seven shore excursion categories and 3259 individual excursion products distributed in 458 cruise ports of call around the world. By using content analysis, word frequency analysis, and sematic network analysis, this study revealed a core-periphery structure of shore excursion categories and identified the relationship between shore excursions and relevant local resources (e.g., natural and cultural resources, tourist products, facilities, experiences, and activities). Additionally, means analysis and regression analysis highlight regional differentiation in terms of type, positioning or image, duration, and price of cruise excursions. Findings suggest that destinations which use the research methodology applied here can identify critical local resources needed for shore excursion products that will meet cruise line demand and satisfy cruise passengers.
Chapter
The maritime economy, as a range of diverse elements, encompasses all the industries and activities that utilize the sea as a natural resource, including shipbuilding, fisheries, exploitation of the sea and undersea, marine shipping, seaports, various maritime production and sales services. The specificity of the maritime economy is that it is characterized by a multiplicative effect on the development of land economy, which provides a guarantee for faster development of the rest of the economy, but also it is a justified reason for prioritizing maritime affairs. The empirical section in this paper analyses the indicators that provide an overview of the multiplier effect on the County of Zadar resulting from the expansion of maritime passenger traffic. The aim of this paper is to present the impact of maritime passenger traffic (cruise passengers, etc.) effect, as one of the segments of the maritime economy on the development of seaports and their surroundings (local units and county) and to define conceptual instruments and solutions for long-term development.
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The movement of cruise ships has the potential to be a major trigger of coronavirus disease (COVID-19) outbreaks. In Australia, the cruise ship Ruby Princess became the largest COVID-19 epicenter. When the Ruby Princess arrived at the Port of Sydney in New South Wales on March 19, 2020, approximately 2,700 passengers disembarked. By March 24, about 130 had tested positive for COVID-19, and by March 27, the number had increased to 162. The purpose of this study is to analyze the relationship between the cruise industry and the COVID-19 outbreak. We take two perspectives: the first analysis focuses on the relationship between the estimated number of cruise passengers landing and the number of COVID-19 cases. We tracked the movement of all ocean cruise ships around the world using automatic identification system data from January to March 2020. We found that countries with arrival and departure ports and with ports that continued to accept cruise ships until March have a higher COVID-19 infection rate than countries that did not. The second analysis focuses on the characteristics of cruise ships infected with COVID-19. For this purpose, we utilize the list named “Cruise ships affected by COVID-19” released by the Centers for Disease Control and Prevention. As a result, cruise ships infected with COVID-19 were large in size and operated regular cruises that sailed from the same port of arrival and departure to the same ports of call on a weekly basis.
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This study undertakes one of the first empirical attempts to investigate and contribute a set of innovative findings to investor herding behavior and herding spillover effects in globally listed shipping company stock returns. Distinguishing between OECD and Non-OECD markets, herding behavior is tested on a diversified set of shipping companies traded in international equity markets, over different business cycle phases, financial crises, and external shocks. A set of dynamic models, well established in the relevant behavioral finance literature, is implemented. Empirical evidence indicates investor herding behavior in shipping stock returns and herding spillover effects between different shipping sectors, albeit not robust in all cases. These challenging findings can have a material impact on efficient investment and financing decisions of shipping market players.
Technical Report
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This report examines Barbados’ position in the cruise tourism global value chain (GVC) and identify opportunities for small businesses within the sector. While cruise tourism remains a small niche within the broader tourism industry—its 24 million passengers constitute just 2% of worldwide travelers—it is a critical economic activity in the Caribbean. Barbados conforms to this regional trend, contributing 54% of the 1.3 million tourists who visited the country in 2015. While the total number of cruise passengers arriving in the Bridgetown port has increased in recent years, the average amount of money they are spending is declining. This report identifies some of constraints associated with Barbados’ cruise tourism products and outlines potential upgrading strategies to boost passenger expenditures.
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This study examines private entry strategies and internationalization patterns in the cruise terminal industry. The focus is on the second biggest cruise region in the world, the Mediterranean and its adjoining seas. A database detailing the ownership structures observed in cruise terminals in 18 different countries forms the backbone of the empirical analysis. This dataset details the entry strategies and implementation options of cruise terminal operators, their corporate features and strategies, and the emerging partnership dynamics. Methodologically, our analysis is based on earlier constructs used to conceptualize entry forms and strategic management in container terminals and port governance systems. The findings suggest that cruise terminals are subject to an initial phase of privatization and internationalization. The outcomes point to the emergence of international cruise terminal operators and the active presence of cruise lines and other types of entities (including port and shipping companies, shipping agents, and Chambers of Commerce). While the cruise terminal development path shows some similarities with what happened in container ports a few decades ago, an array of differences also emerge.
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The world’s cruise corporations regularly purchase large, luxurious cruise ships. In accordance with the Cruise Line International Association, 33 new ocean cruise ships will be available on the market by 2020. These types of capital expenditures are associated with large financial outlays of up to $ 1 billion. The leading cruise corporations are not able to finance purchases of new units with their own resources and therefore look for different solutions. Available publications focus mainly on issues related to purchasing cargo ships, not cruise ships. The objective of the article is to identify sources of funding of new cruise ships. Our analysis identifies the average capital expenditure associated with purchasing new cruise ships and factors that influence it. The most popular methods for raising such capital are also provided. Our research methodology relies on data exploration method, a desk research method and comparative analysis.
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This book provides an overview of the cruise industry covering a broad range of topics and issues. It has been written for a broad audience including students pursuing university and training programmes, tourism industry professionals, planners and managers in the cruise industry, and finally government agency employees. The book is organized into seven parts. Part 1 introduces the industry and some of its fundamental principles including economics, corporate social responsibility, passengers' health and wellbeing, and the relationship between academic research and professional practice on the subject. Part 2 focuses on the cruise experience, that is, cruise passengers and crew. Part 3 explores markets, marketing and the motivations for cruising. In Part 4, the impacts of cruise ship tourism are investigated through the examination of the social and natural environments. This is complemented by Part 5, which looks at the planning and management for sustainable cruising. Part 6 investigates ports, destinations and infrastructure development including the recent, rapid emergence of cruising in China. Part 7 consists of a single chapter, which brings the topic to a close whilst providing a brief discussion on the future of the industry. The book has 35 chapters and a subject index.
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Chapter
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This book is divided into six parts, which are organized to guide the reader step by step from the macro level of the cruise industry to the micro level of operations management on board cruise ships. Part I (chapters 1-4) sets the scene for the book by characterizing the conditions under which cruise lines operate. Part II (chapters 5-8) includes four chapters that address issues of significance for corporate managers in the cruise sector. Part III (chapters 9-11) deal with aspects of the marketing mix employed by cruise lines to attract passengers and fill their ships. Part IV (chapters 12-15) is concerned with managerial functions related directly to the cruise product. Part V (chapters 16-19) focuses on operational management functions on board cruise ships. The final Part VI (chapter 20) looks at future development possibilities for the cruise sector.
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This research paper examines solutions to the complexity of global cruise ship supply chain management through a field study of a large Florida-based global cruise company's practices in re-supplying ships globally. This field study focuses on the key characteristics of a cruise ship supply chain and the best practices in managing that global service supply chain. The methodology used for this study is a 24-month field study equally divided between time on cruise ships and time at the head office, complemented by 19 formal semi-structured interviews of directors and managers within the supply chain management department of the cruise company. The findings of this study have implications for the management of complex global service supply chains in such settings as humanitarian/emergency supply chains, and resort/tourism supply chains.
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Given the sheer complexity of effectively managing the web of potential stakeholders in any tourism development it is argued that for the future of Caribbean cruise tourism, the task is compounded by several key issues that warrant discussion. These include the economic dependency of the Caribbean region on tourism, the inequity of power relations between the various stakeholder groups and the lack of proven collaboration within this fragmented region of culturally diverse islands. This paper addresses these issues, discussing the importance of collaboration and planning for development, highlighting the disparate needs of the different stakeholders involved and drawing attention to the continuing paradox between maximising the opportunities presented by Caribbean cruise tourism whilst effectively managing its sustained development. Copyright
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This book explores the theory, issues, impacts and management considerations surrounding the growing industry of cruise tourism. It begins by giving an overview of the cruise industry, followed by chapters focusing on the increasing demand for cruising. It presents case-studies of specific countries, including the Antarctic, Caribbean and Alaska before reviewing the economic, social and environmental impacts of cruise tourism. It concludes by exploring predictions for the future of the industry.
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The purpose of this study is to develop and estimate an integrated structural path model of the determinants of cruise demand based on the nexus of motivation, preference and intention of cruise tourists. The paper identifies the drivers of this demand in competitive markets. The model results show that different cruise motives have a significant effect (positive or negative) on specific cruise preferences and intentions, while some significant relationships between cruise preferences and intentions could also be found. Based on this structural path model, the authors apply an ANOVA approach to compare the differences of cruise motivations and cruise preferences in Asian markets in order to trace the instrumental determinants of cruise passengers, leading to a new understanding of the commonalities and differences of cruise competitiveness in different regional markets.
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There is substantial research that profiles the nature of tourists and the motivations that underlie their general travel behaviour. Travel research on racial and ethnic minority groups is very limited, however. Furthermore, hardly any work exists on the travel motivations of cruise tourists in general. Based on a survey of North American cruise passengers, this paper compares the motivations of white Caucasians and ethnic minority passengers for taking a cruise vacation. The results indicate that while there are many similarities, a number of important differences exist to warrant strategies for attracting more minority passengers to take cruise vacations.
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The cruise industry has become the fastest growing segment of the tourism industry in the 1980Æs. This paper presents an overview of the reasons behind this growth, reviews the current structure of the U.S. cruise line industry, and looks at the future structure of the industry.
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This paper contrasts the "static tradeoff" and "pecking order" theories of capital structure choice by corporations. In the static tradeoff theory, optimal capital structure is reached when the tax advantage to borrowing is balanced, at the margin, by costs of financial distress. In the pecking order theory, firms preferinternal to external funds, and debt to equity if external funds are needed. Thus the debt ratio reflects the cumulative requirement for external financing. Pecking order behavior follows from simple asymmetric information models. The paper closes with a review of empirical evidence relevant to the two theories.
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It is well known that firms are more likely to issue equity when their market values are high, relative to book and past market values, and to repurchase equity when their market values are low. We document that the resulting effects on capital structure are very persistent. As a consequence, current capital structure is strongly related to historical market values. The results suggest the theory that capital structure is the cumulative outcome of past attempts to time the equity market.
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Contrary to Baker and Wurgler (2002), we find that the importance of historical average market-to-book in leverage regressions is not due to past equity market timing. We find that only equity issues may be timed to conditions in equity market, but they do not have significant long-lasting effects on capital structure. Other transactions exhibit timing patterns that are unlikely to induce a negative relation between market-to-book and leverage. We also find that historical average market-to-book has a significant effect on current financing and investment decisions, implying that it contains information about growth opportunities not captured by current market-to-book.
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In this paper, the cruise line industry is characterized as an oligopoly where a finite number of cruise lines compete to maximize their profits over a fixed planning horizon. The oligopolistic competition is modeled as a N-person nonzero-sum noncooperative dynamic game. The noncooperative Nash equilibrium capacity investment strategies of cruise lines are theoretically analyzed under the open-loop information structure. The necessary conditions for an open-loop Nash equilibrium solution are derived using a Pontryagin-type maximum principle and the sufficient conditions are also established. The economic interpretation of the optimality conditions is given so as to demonstrate the difference between the static and dynamic oligopoly problems. The dynamic oligopolistic competition of three cruise lines in a hypothetical setting is also numerically analyzed by using the iterative algorithm. Numerical results provide a number of important managerial guidelines for cruise capacity investment decisions. The paper concludes with a discussion on future research directions.
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The cruise line industry has been through a metamorphosis. From being a declining mode of travel in the 1960s, the cruise line industry turned the corner in the 1970s and became one of the fastest growing segments of the wider tourism industry during the 1980s. This paper examines the reasons behind this growth, the current structure of the US cruise industry and the issues facing the industry in the 1990s as it heads towards the next century.
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Recent empirical evidence has shown that internal capital markets within multinational corporations are used to reduce overall financing costs by optimizing the mix of internal and external debt of affiliates in different countries. We show that this cost saving use of internal capital markets is not limited to multinationals, but that domestic business groups actively optimize the internal/external debt mix across their subsidiaries as well. We use both subsidiary and group level financial statement data to model the bank and internal debt concentration of Belgian private business group affiliates and show that a pecking order of internal debt over bank debt at subsidiary level leads to a substantially lower bank debt concentration for group affiliates as compared to stand-alone companies. However, as the group's overall debt level mounts, groups increasingly locate bank borrowing in subsidiaries with low costs of external financing (i.e. large subsidiaries with important collateralable assets) to limit moral hazard and dissipative costs.
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This paper considers a firm that must issue common stock to raise cash to undertake a valuable investment opportunity. Management is assumed to know more about the firm's value than potential investors. Investors interpret the firm's actions rationally. An equilibrium model of the issue-invest decision is developed under these assumptions. The model shows that firms may refuse to issue stock, and therefore may pass up valuable investment opportunities. The model suggests explanations for several aspects of corporate financing behavior, including the tendency to rely on internal sources of funds, and to prefer debt to equity if external financing is required. Extensions and applications of the model are discussed.
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This paper examines to what extent credit ratings directly affect capital structure decisions. The paper outlines discrete costs (benefits) associated with firm credit rating level differences and tests whether concerns for these costs (benefits) directly affect debt and equity financing decisions. Firms near a credit rating upgrade or downgrade issue less debt relative to equity than firms not near a change in rating. This behavior is consistent with discrete costs (benefits) of rating changes but is not explained by traditional capital structure theories. The results persist within previous empirical tests of the pecking order and tradeoff capital structure theories. Copyright 2006 by The American Finance Association.
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I modify the uniform-price auction rules in allowing the seller to ration bidders. This allows me to provide a strategic foundation for underpricing when the seller has an interest in ownership dispersion. Moreover, many of the so-called "collusive-seeming" equilibria disappear.
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We trace capital structure to past market valuations. Unlevered firms tend to be those that raised funds when their valuations were high, as measured by the market-to-book ratio. Levered firms tend to be those that raised funds when their valuations were low. The results are difficult to reconcile with the tradeoff theory because temporary changes in market-to-book lead to permanent changes in capital structure. The results are also difficult to reconcile with the pecking order because temporary increases in market-to-book lead to permanent increases in cash balances. The results are consistent with the theory that capital structure is the cumulative outcome of a series of market-timing-motivated financing decisions.
Coronavirus: When will cruises start again and should I book?
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