Cruise holidays - how on-board service quality affects passengers' behaviour

Abstract

This study examines the relations ships between the perceived service quality and satisfaction on on-board spending and behavioral action, while it also explores differences in on-board spending. Survey data were collected from 649 cruise ship passengers. A partial least square structural equation modeling was used to test the conceptual model and analysis of variances to explore the influence of passengers' demographic characteristics. Results show a positive link between service quality and satisfaction, and satisfaction and behavioral actions. Spending behavior has a moderating effect on behavioral actions, and is influenced by gender and travel frequency. Investing in the quality of cruise ships is vital, as it influences satisfaction and positive word-of-mouth. How to increase on-board spending, is more complex. On the one hand, the findings show that increased customer satisfaction does not habitually mean increased revenue. On the other hand, the results imply that passengers' on-board spending varies across customer segments.