For decades the cruise tourism sector has constituted the fastest growing segment of the global tourism industry, which gives rise to economic, sociocultural and environmental effects in cruise destinations. These effects constitute important areas of concern for tourism policy makers – especially whether or not the positive effects of cruise tourism - most often economic - are higher than the negative effects. This is especially relevant in small island destinations where the negative effects are more severe than in larger communities. The effects have also been discussed in the small island community in the North Atlantic, the Faroe Islands, which have experienced a higher growth in cruise tourism passengers than the international cruise figures, and where there is a lack of studies on the cruise tourism effects. In addition to this the academic literature on cruise tourism is said to be fragmented and inadequate. Therefore there is a need for studies that examine tourism managerial methods for the assessment of cruise tourism impacts and implementation measures in order to promote the positive effects and mitigate the negative effects. This study seeks to fill this gap by focusing on, how to improve the managerial and strategic marketing initiatives in order to increase the direct economic effects of cruise tourism in the Faroe Islands. Forerunner examples include the Icelandic and Orkney cruise tourism industry. The study showed the latter of these strategies to be more beneficial to the small island community where among others revenue management and experience economy showed as beneficial theoretical standpoints. Empirical evidence pointing towards how to use the strategy was presented. Key factors are focusing on customer knowledge and the perceived value of cruise companies, B2B and cruise passengers, B2C thereby creating valuable products tailored to the customer needs as well as strategic marketing attracting and servicing the high consuming, price inelastic customers identified, e.g. Americans. In relation to the cruise ship segments, studies showed, the higher ship class - where luxury is the top class - more spenders could be expected. Main factors hindering more spending were identified as being a feeling of on-shore time shortage, a lack of need and factors relating to the marketing mix. Regression analyses indicate that the further towards the end of the entire cruise ships route the higher customer spending can be expected. In order for the marketing strategies to be successful a key element is to improve cooperation locally and in the regional area due to the high interconnectedness with the international and regional cruise market context.
|Educations||MSc in Economics and Marketing, (Graduate Programme) Final Thesis|
|Number of pages||150|