Has COVID-19 had an impact on prices? The case of the cruise industry

Abstract

One of the previously unknown and unexpected impact of COVID-19 is its effect on prices. The aim of this research is to estimate how prices in the cruise industry have changed since COVID-19 was declared a pandemic. To carry out this research the authors created an extensive database of prices from February 2019 to March 2021, which were collected from a leading Spanish online travel agency (OTA). Methodologically, this research uses descriptive and hedonic analyses. The main conclusion is that cruise prices have reduced, on average, by 4.3%, although there are relevant differences between cruise companies, zone of departure, size, antiquity and rating of the ships, and the number of days between the date of capture and the date of cruise departure. Finally, several managerial implications are suggested from the results of this study