Decision-making in cruise operations management: A double-hurdle approach

Abstract In the cruise operations management literature, scant knowledge is available regarding the choice of ports-of-call. Hence, insight into cruise lines' decisions to visit a given port (or not) through a two-step decision-making process may provide an effective means to inform cruise operations management. Based on a novel perspective on cruise online ratings and reviews, this research applied a Heckman double-hurdle approach to 505 global cruise ports to analyze the patterns of cruise visits. Results revealed that the number of cruise visits were significantly related to cruise port ratings, excursion ratings, and the number of reviews. Next, Sobel-Goodman mediation tests showed that online platforms had substantial mediating effects on cruise port ratings. Further, robustness checks based on two sub-samples demonstrated that the empirical results of the double-hurdle models were reliable. This paper provides the first empirical attempt to demonstrate the nexus between cruise lines and ports in an online platform context. The empirical findings provide implications for source credibility theory and cruise operations management. They are also believed to be useful for researchers in operations management studies, business practitioners in international cruising, policymakers, and port authorities.

[1]  N. Lee,et al.  Word of mouth communication within online communities: Conceptualizing the online social network , 2007 .

[2]  S. Sénécal,et al.  The influence of online product recommendations on consumers' online choices , 2004 .

[3]  Fred Bronner,et al.  Vacationers and eWOM: Who Posts, and Why, Where, and What? , 2011 .

[4]  P. Nijkamp,et al.  Travellers’ willingness to pay and perceived value of time in ride-sharing: an experiment on China , 2020, Current Issues in Tourism.

[5]  D. Zilberman,et al.  Supply Chain Design and Adoption of Indivisible Technology , 2016 .

[6]  Donnavieve N. Smith,et al.  Online Peer and Editorial Recommendations, Trust, and Choice in Virtual Markets , 2005 .

[7]  P. Nijkamp,et al.  Interpretation of cruise industry in a two-sided market context: An exploration on Japan , 2017 .

[8]  S. Sanz-Blas,et al.  Does culture affect sentiments expressed in cruise tours’ eWOM? , 2019 .

[9]  Ingoo Han,et al.  The Effect of On-Line Consumer Reviews on Consumer Purchasing Intention: The Moderating Role of Involvement , 2007, Int. J. Electron. Commer..

[10]  Marios D. Sotiriadis,et al.  Electronic word-of-mouth and online reviews in tourism services: the use of twitter by tourists , 2013, Electron. Commer. Res..

[11]  D. A. Kenny,et al.  The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. , 1986, Journal of personality and social psychology.

[12]  Gerard de Jong,et al.  Port and Inland Mode Choice from the Exporters’ and Forwarders’ Perspectives: Case Study – Java, Indonesia , 2015 .

[13]  S. Eigenbrode,et al.  Evaluating Vector-Virus-Yield Interactions for Peas and Lentils under Climatic Variability: A Limited Dependent Variable Analysis , 2011 .

[14]  J. Heckman.  Sample selection bias as a specification error , 1979 .

[15]  D. Zilberman,et al.  Contracting in the Biofuel Sector , 2017 .

[16]  Lucy C.S. Budd,et al.  Airlines, apps, and business travel: a critical examination , 2013 .

[17]  D. Zilberman,et al.  Marketing Contracts and Crop Insurance , 2015 .

[18]  Peter Nijkamp,et al.  Itinerary planning: Modelling cruise lines’ lengths of stay in ports , 2018, International Journal of Hospitality Management.

[19]  Dan Sarel,et al.  Comparative Advertising Effectiveness: The Role of Involvement and Source Credibility , 1991 .

[20]  David Zilberman,et al.  Links among innovation, food system transformation, and technology adoption, with implications for food policy: Overview of a special issue , 2017, Food Policy.

[21]  J. Petrick,et al.  A meta-analysis of the direct economic impacts of cruise tourism on port communities , 2019, Tourism Management Perspectives.

[22]  Julian K. Ayeh,et al.  “Do We Believe in TripAdvisor?” Examining Credibility Perceptions and Online Travelers’ Attitude toward Using User-Generated Content , 2013 .

[23]  A. Kaplan,et al.  Users of the world, unite! The challenges and opportunities of Social Media , 2010 .

[24]  Bruce E. Marti,et al.  GEOGRAPHY AND THE CRUISE SHIP PORT SELECTION PROCESS , 1990 .

[25]  P. Nijkamp,et al.  Assessing Customer Value in Segmented Cruise Markets: A Modelling Study on Japan and Taiwan , 2016 .

[26]  Giovanni Satta,et al.  Destination satisfaction and cruiser behaviour: The moderating effect of excursion package , 2014 .

[27]  Mohan V. Tatikonda,et al.  A behavioral study of supply manager decision-making: Factors influencing make versus buy evaluation , 2006 .

[28]  Collin D. Ramdeen,et al.  Cruise ship itineraries and occupancy rates , 2013 .

[29]  Jason Q. Zhang,et al.  When does electronic word-of-mouth matter? A study of consumer product reviews☆ , 2010 .

[30]  C. I. Hovland,et al.  The Influence of Source Credibility on Communication Effectiveness , 1951 .

[31]  D. Zilberman,et al.  Economics of Agricultural Supply Chain Design: A Portfolio Selection Approach , 2016 .

[32]  Sun－young Park,et al.  Cruise Passengers' Decision-Making Processes , 2007 .

[33]  P. Nijkamp,et al.  A regional analysis of willingness-to-pay in Asian cruise markets , 2016 .

[34]  T. Reardon,et al.  An Economic Model of the Evolution of Food Retail and Supply Chains from Traditional Shops to Supermarkets to E‐Commerce , 2018, American Journal of Agricultural Economics.

[35]  D. Toudert,et al.  Impact of the destination image on cruise repeater’s experience and intention at the visited port of call , 2016 .

[36]  T. Notteboom,et al.  Cruises and cruise ports : structures and strategies , 2014 .

[37]  Alexis Papathanassis,et al.  Assessing the ‘poverty of cruise theory’ hypothesis , 2011 .

[38]  K. Wei,et al.  The role of institutional pressures and organizational culture in the firm's intention to adopt internet‐enabled supply chain management systems , 2010 .

[39]  P. Nijkamp,et al.  Demand Determinants of Cruise Tourists in Competitive Markets: Motivation, Preference and Intention , 2015 .

[40]  Youngjin Yoo,et al.  Designing Interactions in Tourism Mediascape - Identification of Patterns for Mobile 2.0 Platform , 2008, ENTER.

[41]  D. Zilberman,et al.  Innovation-induced food supply chain design , 2017, Food Policy.