Itinerary planning and cabin pricing of coastal short-term cruise tourism for local Chinese cruise companies

Abstract

Coastal short-term cruise products are matched with Chinese consumer demand characteristics. Launching coastal short-term cruise products can help local Chinese cruise companies change the monopoly status of foreign cruise companies in China. This paper builds a two-stage optimization model to provide a decision-making method for local Chinese cruise companies. The first stage determines the itinerary scheme, with the goals of minimizing the cost and maximizing the potential demand. The second stage determines the cabin price, with the goal of maximizing the profit of the cruise company. The model considers the competition of cruise products and their alternative products based on consumer preferences. In the case study, we take Dalian Port as the home port to do the numerical analysis. The results show that coastal cruise products with journey times of 2–3 days have the highest market penetration and are more profitable.

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