Cruise Ship Itineraries: an Investigation of the Effect of Itinerary on Cruise Pricing

Abstract

This study investigated cruise ship stateroom pricing to determine if cruise ship itinerary has a significant effect on stateroom pricing. The study analyzed pricing data for cruise ship voyages originating and returning to a North American port. Cruise prices were reduced to a price per day for all voyages and linear regression analysis was used to investigate if cruise ship itinerary had a significant effect on cruise ship pricing. A linear regression analysis of the data revealed that cruise ship itineraries have a significant effect on cruise ship stateroom pricing, and the regression model explained a significant proportion (31%) of the variance in cruise ship stateroom pricing. Hawaii and Alaska cruise itineraries reported the highest mean cruise price per day among the itineraries investigated. West Coast Mexico and Western Caribbean cruise itineraries reported the lowest mean cruise price per cruise day among the itineraries investigated. Northern itineraries (Alaska, Canada/New England, Bermuda) reported a higher mean cruise price per cruise day than do the cruise itineraries further south (Caribbean, Bahamas, Cuba, Mexico). To date, the effect of cruise line itinerary on cruise pricing has not been explored in academic research. This study has strong implications for better understanding of the effect of different cruise itineraries on cruise line pricing.