Development of a Value Creation Programme in the Yachting Services Cluster: A Value Management Approach

Yachting services in Trinidad and Tobago (T&T) is an important cluster in the tourism sector and is characterised by low switching costs and a highly sophisticated demand. The decrease in demand of yachting services over the years has signaled a cause for concern. Evidence shows that service providers are unable to attract and retain customers. This paper investigates the current status and discusses the key variables affecting value creation of the yachting services cluster (YSC). An empirical study was recently conducted to acquire the views from the targeted groups of the cluster stakeholders in T&T. A host of factors/elements, including repair accuracy, concurrent engineering, quality standards, quality assurance, and quality control, were identified. Results showed that the majority of customers were concerned with a disparity between quality of services offered and the prices charged particularly in the repair and maintenance of their yachts. Incorporating the empirical findings acquired, an attempt was made to develop a value creation programme for the cluster using a value management (VM) approach. A VM framework is proposed for possible adoption in the cluster to gain sustainable competitiveness.