Optimal cruise-liner passenger cabin pricing policy

Shaul P. Ladany, Avner Arbel

Research output: Contribution to journalArticlepeer-review

67 Scopus citations


The first attempt, in any marketing environment, to consider the optimal number of market segments, as well as the corresponding prices, is performed here in conjunction with cruise liners. The optimal market segmentation pricing strategy for passenger cabins on cruise-liners is investigated under the assumption of an aggregate linear demand function, and for four different situations: (a) single price market, (b) optimal segmentation of the Unused capacity of a single-price-market, (c) optimal segmentation of all cabins, and (d) optimal segmentation allowing for infiltration from higher-priced to adjacent lower-priced segments. A numerical example is provided for each case.

Original languageEnglish
Pages (from-to)136-147
Number of pages12
JournalEuropean Journal of Operational Research
Issue number2
StatePublished - 25 Nov 1991


  • Cruise liners
  • optimal segmentation
  • price discrimination
  • pricing policy

ASJC Scopus subject areas

  • Computer Science (all)
  • Modeling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management


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