Strategic Planning & Analysis Flashcards

Which customer segmentation approach is most actionable for a cruise-focused travel agency building targeted marketing campaigns?

Answer: Psychographic and behavioral segmentation based on cruise experience level and lifestyle

Psychographic and behavioral segmentation (e.g., first-timers vs. loyalists, adventure seekers vs. luxury travelers) creates more actionable and relevant cruise marketing messages than single-variable demographics.

The 'booking curve' in cruise strategic planning refers to:

Answer: The pattern of reservations made over time relative to a sailing's departure date

The booking curve tracks when passengers reserve over time — understanding it helps cruise lines and agencies forecast revenue, time promotions, and identify sailings at risk.

When a cruise line pursues a 'premiumization' strategy, it typically involves:

Answer: Elevating product quality, service standards, and pricing to move upmarket and attract higher-yield passengers

Premiumization involves upgrading the product experience and raising price points to attract wealthier guests who generate higher onboard revenue, improving overall yield.

A cruise line wants to reduce its reliance on price-sensitive leisure travelers. Which strategic initiative best addresses this goal?

Answer: Increase charter and incentive group business targeting corporations

Corporate charters and incentive groups are typically less price-sensitive, book at higher yields, and provide guaranteed revenue, reducing dependence on discount-driven leisure bookings.

In portfolio management for a travel agency, the Boston Consulting Group (BCG) matrix would classify a high-growth, high-market-share cruise product as a:

Answer: Star

In the BCG matrix, a 'Star' has both high market growth and high relative market share, representing a strong competitive position in an expanding market.

Which analytical tool helps a cruise agency identify gaps between current client spending and their full potential cruise spend?

Answer: Share-of-wallet analysis

Share-of-wallet analysis compares how much of a client's total cruise budget is captured by the agency versus spent elsewhere, revealing growth opportunities.

A cruise line's decision to homeport a ship in a new city is primarily driven by which strategic consideration?

Answer: Accessing untapped source markets and reducing passenger travel friction to embarkation

Homeporting in new cities like Galveston or Baltimore opens regional source markets where drive-to passengers avoid flying, making cruising more accessible and boosting bookings.