Title: Cruise ship cost analysis: an AHP study on cost components

Authors: Mihail Diakomihalis; Evaggelia Stefanidaki; Evangelos Chytis

Addresses: School of Management and Economics, Technological Educational Institute of Epirus, Psathaki, 48100 Preveza, Greece ' Department of Shipping, Trade and Transport, University of the Aegean, 2, Korai street, Chios 82100, Greece ' School of Management and Economics, Technological Educational Institute of Epirus, Psathaki, 48100 Preveza, Greece

Abstract: This paper aims to reveal the factors that influence the cost of cruise ships of different size which offer different programs. The analytic hierarchy process (AHP) is the methodology applied in order to evaluate and compare the cost components. The factors which influence the cost levels after a brainstorming with cruise sector experts, are: 1) voyage cost; 2) cost of food and beverage provision; 3) cost of supplies; 4) administration cost; 5) financial cost; 6) technical upgrading and lay-up cost. Each criterion in the AHP method is shaped by the significance of its sub-criteria. Results of the study revealed that technical upgrading and lay-up cost is the major driver for the total cost for the small cruise company (SCC), while financial cost is the most important cost category for the large cruise company (LCC) and least important for the small cruise company (SCC).

Keywords: cost factors; cruise companies; analytical hierarchy process; AHP; cruise ships; cost analysis; technical upgrading; lay-up costs; financial costs.

DOI: 10.1504/IJDSRM.2016.079792

International Journal of Decision Sciences, Risk and Management, 2016 Vol.6 No.3, pp.265 - 280

Received: 21 Jan 2016
Accepted: 12 Mar 2016
Published online: 14 Oct 2016 *

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